2 days ago
Banking giant JPMorgan Chase is reportedly giving a 60% chance that a global recession will occur this year due to “disruptive” policies in the US. According to a new report by Reuters, JPMorgan is raising the odds of a global recession from 40% to 60% due to new US trade policies, which include tariffs on China and the European Union (EU), sparking a worldwide trade war. As stated by the firm in a note seen by Reuters, “Disruptive U.S. policies have been recognized as the biggest risk to the global outlook all year. The effect… is likely to be magnified through (tariff) retaliation, a slide in U.S. business sentiment and supply-chain disruptions.” However, JPMorgan did note that it expects the blow from the tariffs to be dampened by the likelihood of interest rate cuts by the Federal Reserve in the future. Other large institutions are sounding the alarm on a potential recession as well, including Goldman Sachs and the Hong Kong and Shanghai Banking Corporation (HSBC), though their odds of a downturn are lower. As stated by an HSBC analyst, according to Reuters, “Our equity market implied recession probability indicator suggests equities are already pricing in (about) 40% chance of a recession by the end of the year.” Last week, Goldman Sachs raised its chances of a recession hitting the US economy in the next 12 months to 35%, a 15% jump from its previous prediction. The firm said that it expects inflation – excluding food and energy prices – to hit 3.5% this year, 1.5% higher than the Fed’s 2% goal. Also last week, President Donald Trump signed an executive order imposing a 10% tariff on all imported goods entering the US, while issuing a proclamation detailing “reciprocal tariffs” on dozens of specific countries effective April 9th, with rates totaling up to 54% on China. Follow us on X , Facebook and Telegram Don`t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: DALLE3 The post JPMorgan Chase Sees 60% Probability of Global Recession This Year Amid ‘Disruptive US Policies’: Report appeared first on The Daily Hodl .
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Financeflux China Crypto EU Federal Reserve global trade goldman sachs JPMorgan News recession tariffs taxes trump
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BitGo Integrates Bitcoin Lightning Network, Supporting 1,500 Institutional Clients with $1.75 Billion in Fast, Low-Fee Payments
BitGo has announced its integration with Voltage, enabling support for the Bitcoin Lightning Network for its institutional clients. This development allows BitGo users to access fast and low-fee Bitcoin Lightning payments directly via API, simplifying the transaction process without the need for additional partners. The integration is expected to benefit approximately 1,500 institutional clients, enhancing their ability to transact on Bitcoin’s Lightning Network. This move is part of a broader trend in the cryptocurrency space aimed at scaling Bitcoin while maintaining its core principles of trust and efficiency. This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz . To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io The Daily Hodl
DeFi Borrowing Demand Plunges as Crypto Traders Deleverage Amid Market Turmoil
Borrowing demand across decentralized finance (DeFi) protocols plunged sharply in the wake of the recent crypto market turmoil, a sign of widespread deleveraging as crypto investors unwound risky positions. The average U.S. dollar stablecoin yield — what protocols pay out to lenders for lending out their assets — fell to 2.8% on Tuesday to its lowest level in a year, measured by DeFi yield-earning application vaults.fyi`s benchmark . That`s well below the average U.S. dollar money market rates on traditional markets (4.3%), and a hefty decline from mid-December`s crypto market peak, when DeFi rates topped 18%. "This is largely due to the market moving towards a risk-off environment where borrowing across protocols has decreased significantly," said Ryan Rodenbaugh, CEO of Wallfacer Labs, the team behind vaults.fyi. The move reflects risk-off sentiment spreading across crypto markets, with investors pulling back leverage amid volatile price swings. As users repay loans and liquidations clear out under-collateralized positions, demand for borrowing dips. Meanwhile, deposits available for lending on protocols remained stable, per vaults.fyi data, meaning that declining revenue from borrowers are spread among the same amount of lenders, exerting downward pressure on yields. That`s a "negative double-whammy" for the rates that the remaining lenders are getting paid, Rodenbaugh said. The sharp decline in yields and deleveraging was exacerbated by this weekend`s carnage in crypto markets, as major DeFi lending protocols reported a wave of liquidations amid rapidly plunging asset prices. Bitcoin (BTC) and Ethereum`s ETH, two assets predominantly used as collateral for crypto loans, suffered 10%-15% declines below $75,000 and $1,500, respectively. Aave, the largest decentralized lending market by total value locked (TVL), processed over $110 million in forced liquidations during the Sunday-Monday market decline, Omer Goldberg, CEO of DeFi analytics firm Chaos Labs, noted citing on-chain data. Sky (formerly MakerDAO), issuer of the $7 billion USDS stablecoin and one of DeFi’s largest lending platforms, also liquidated an ether whale`s $74 million DAI loan collateralized by 67,570 ETH, worth $106 million at the time, on-chain data shows. Another large lender with 65,000 ETH in collateral scrambled to pay off portions of their $66 million loan to avoid a similar fate, bringing down the outstanding debt to $28 million. The total value of borrowed assets on Aave dropped to $10 billion on Tuesday, a sharp drop from over $15 billion in mid-December, DefiLlama data shows. Morpho, another key lending protocol, saw a similar drop to $1.7 billion from $2.4 billion during the same period, per DefiLlama . The Daily Hodl
