Food prices in the Netherlands are 11 percent more expensive than last year
In the Netherlands, people spent 11.2 percent more on food prices this June than last year. In almost 50 years, food prices have never increased more than 10 percent.
Social housing in the Netherlands is declining
In the last ten years in the Netherlands, the rate of social housing rental has been falling due to the insufficient construction of social housing (state-supported living spaces for low-income families) and the spread of private ownership.
Although the Dutch government tries to take various measures to increase this rate, it is considered to be insufficient.
While 30% of the houses in the Netherlands were in the social housing category in 2012, this rate decreased to 27% in 2022 and is expected to decrease to 25.7% in 2030. Although Hugo de Jonge, Minister of Housing and Spatial Planning, announced that they aim to build 250,000 social homes by 2030, this will not prevent this decline.
Egg prices expected to rise further in the Netherlands
Egg prices in the Netherlands increased by 4.5% in the first two months of the year, making eggs 25.5% more expensive than last year.
“Grain shortages and reduced exports from Ukraine” are cited as the reason why chicken feed costs continue to rise in the country. This may cause egg prices to continue to rise in the coming period. In addition, bird flu cases in the Netherlands are also affecting egg prices. It is stated that fifty million cases of avian influenza occurred in Europe in 2022 and that six million Dutch chickens were also affected by bird flu.
Is it time for Bitcoin to shine?
Bitcoin prices continued to rise on Tuesday amid growing concerns that the Silicon Valley Bank (SIVB) crisis will have a significant contagion effect on the rest of the traditional banking industry.
While the bitcoin price initially tumbled in a risk-free trading environment, the world’s largest cryptocurrency rallied 27% from Friday’s lows to 3-week highs.
For Morgan Stanley stock strategists, this could be Bitcoin’s time to shine.
“Bitcoin was created as a way for everyone to hold value in a private digital wallet without the need for an intermediary bank to hold value for them or facilitate transactions,” the strategists wrote in a client note. he wrote.
However, they warn that the price shows that Bitcoin is not isolated from the traditional banking system.
“Our conclusion is that the Bitcoin network can work without banks, but the price of Bitcoin, and thus its purchasing power, is and continues to be affected by fiat central bank policy and needs banks to facilitate the flow to crypto.”
“If Bitcoin were to be traded with the core value proposition of ‘Be Your Own Bank’ then Bitcoin would rise with increasing uncertainty about banks.”
They also argue that the ongoing rally in Bitcoin is likely the result of “a brief squeeze rather than a fundamental shift in trading dynamics.”
Finally, the strategists also addressed the following question that has been discussed in crypto circles lately:
Will USD depositors convert to Bitcoin due to uncertainty regarding deposit banks?
“Some may transform, but we think it is too early to say that this is a long-term trend. Bitcoin continues to trade in tandem with the growth of the fiat supply (M2) in general. Unless Bitcoin is used significantly as a means of payment, the risky asset trading nature of Bitcoin It will be difficult to get away.”
Litecoin rose 11%
On Tuesday, Litecoin gained 10.58% to trade at $83,170 on the Investing.com Index. This is the largest one-day increase since November 23, 2022.
With this move, Litecoin market cap was $5,878B, while the ratio of its value in the total cryptocurrency markets was 0.54%. The highest market cap of the Litecoin cryptocurrency was set at $25,609B.
Litecoin has traded between $79,240 and $83,170 in the past 24 hours.
Litecoin has slumped 5.64% over the past seven days, with 24-hour trading volume at $820.474M, or 0.93% by total volume. Litecoin has traded between $65,1000 and $86,6500 in the past seven days.
Litecoin price is 80.20% lower than $420.00 on December 12, 2017.
Developments in the cryptocurrency markets
On the Investing.com Index, Bitcoin gained 14.23% and traded at $25,281.9.
On the Investing.com Index, Ethereum was up 8.42% to trade at $1,716.02.
Bitcoin market cap was $478,952B, or 44.12% of the total market cap, while Ethereum total market cap was $206,554B, or 19,03% of the total market cap.
Ethereum up 10%
On Tuesday, Ethereum rose 10.09% to trade at $1,742.54 on the Investing.com Index. This is the largest one-day increase since November 10, 2022.
With this move, the Ethereum market cap was $213.47B, while the ratio of its value in the total crypto money markets was 18.93%. The highest market cap for the Ethereum cryptocurrency was set at $569.58B.
Ethereum has been trading between $1,655.74 and $1,742.54 over the past 24 hours.
Ethereum is up 11.28% over the past seven days, with 24-hour trading volume at $15.30B, or 15.96% by total volume. Ethereum has been trading between $1,371,4655 and $1,742.6299 in the past seven days.
Ethereum price is 64.18% lower than $4,864.06 on November 10, 2021.
Developments in the cryptocurrency markets
On the Investing.com Index, Bitcoin gained 17.80% and traded at $26,177.1.
On the Investing.com Index, Tether was up 0.45% to trade at $1,0058.
Bitcoin market cap was measured at $501.95B, or 44.52% of total market cap, while Tether total market cap was $73.36B, or 6.51% of total market cap.
Famous investor Kiyosaki reiterates his call to “Buy Bitcoin”
Famous businessman and writer Robert Kiyosaki renewed his call as a result of the recent macroeconomic developments.
The name, which is well known by the markets, points to Bitcoin and precious metals.
Kiyosaki has been expressing that the Fed’s interest rate policy is not sustainable for a while. After the collapse of three US banks, the expectations of the markets also seem to have evolved into Kiyosaki’s views. Because the 50 basis point rate hike is off the table.
After the release of the US inflation data, the markets began to price the Fed’s 25 basis points interest rate hike as 79%. In addition, the unsustainable monetary tightening has also positively affected the price of Bitcoin (BTC), which is in the risky asset group. BTC price has gained 17% in the last 24 hours, reaching $ 26,400.
According to Robert Kiyosaki, the inflationary process for the US dollar will begin again. Kiyosaki expects this process to bring a crash instead of a soft landing. The author of the book “Rich Dad Poor Dad” called for “more Bitcoin, gold and silver” before the crash.
Bitcoin hits 9-month high after US Inflation data
Bitcoin continued to rise as high as $26,386 as the US CPI data came in 6% year-on-year, in line with expectations, after moving positively throughout the day.
Bitcoin, which dominates the crypto markets, started to see a significant investor demand with the collapse of the last SVB and started a rally in the last 4 days, gaining over 30%. Thus, Bitcoin achieved a significant gain by reaching the price level last seen in June 2022.
After its rise today, Bitcoin continued to increase its value, reaching a market value of half a billion dollars. The entire win was hailed by Bitcoin advocates as the biggest cryptocurrency seen as a safe haven amid the banking crisis. However, the underlying reason for the rise of cryptocurrencies under the leadership of Bitcoin is mostly seen as the view that the Fed will slow down the rate hikes after the effect of the recent crises and finally the inflation data that came in line with the expectations.
As it will be remembered, the bull period in the crypto money markets ended as of November 2021, when the Fed decided to put an end to the expansionary monetary policy and to switch to a tightening monetary policy. Since then, cryptocurrencies have seen a sharp decline due to the negative events experienced within the industry. For example, Bitcoin is currently trading at 60% lower than its peak price of $69,000 in November 2021.
The latest bullish wave has divided the market commentators into two. While some suggest investors take profits after fast-rising prices, those who are more positive about this momentum see the jump as the start of a new bull season.
On the other hand, the rapid rise of Bitcoin caused serious losses to investors who opened a sell position in anticipation of a return. According to Coinglass data, the total liquidation amount in the last 24 hours reached $315 million. 82% of the liquidated positions are short positions.
Dutch cabinet explores stricter climate rules for financial sector
The cabinet is investigating whether stricter rules are needed for companies in the financial sector to meet their climate targets. According to Ministers Sigrid Kaag (Finance) and Rob Jetten (Climate), the industry is “on track” but not moving fast enough.
The government considers compelling insurers, pension funds and banks, among others, to make efforts to ensure that their financing and investments are in line with the Paris climate targets. It is discussed that companies and institutions may be asked to prepare a climate plan that they have to implement.
Kaag announced last year that he would not shy away from legislation if the financial sector did not go green fast enough. He and Jetten will “engage in dialogue” with the industry because “more input is sought from industry, science, regulators and nonprofits”.
Kaag adds that the industry deserves congratulations for showing big goals.
In response, the Dutch Banks Association (NVB) and the Insurers Association, among others, say the entire financial sector wants to take steps to accelerate the sustainability of the economy. According to the organizations, “as a society, a transitional period is required for a gradual shift from fossil fuels to sustainable products, taking into account the affordability and availability of sustainable solutions for citizens and companies.”
Rabobank: ‘Housing prices will fall by 4 percent this year’
Rabobank economists expect house prices to fall 4.2 percent this year.
The bank estimates that prices will not fall further in 2024, in part due to insufficient new construction.
Despite higher mortgage rates and higher inflation, economists at the bank are seeing owner-occupied homes become more affordable. “This is because of falling home prices and rising wages,” says Stefan Groot, housing market economist at RaboResearch.
Groot also thinks that capital market interest rates, on which mortgage lenders base interest rates, will fall again later in the year. In the long run, this could result in a slightly more favorable mortgage interest rate.
A year ago, the housing market was extremely high and then rose sharply. But since the summer, a price drop has begun. This happened when mortgage rates began to rise rapidly, energy costs soared, and inflation soared.
Rabobank economists had previously predicted a 3 percent price drop for this year, but they’ve now changed that percentage.
‘Housing prices are stable in 2024’
But Groot thinks the bottom is in sight. “We foresee a 1.5 percent annual price decline for 2024. This decline is the result of price developments in 2023. We expect house prices to remain more or less stable throughout that year.”
According to him, one of the reasons is that housing supply is lagging behind demand as new construction has not gotten off to a good start. Groot does not foresee a housing market crisis like a decade ago.
“Sellers are a bit stuck due to large price increases in recent years, tighter lending standards and repayment obligations. So we think the market will continue to move more.”
Fear of a ‘new wave of bankruptcies’ in the banking industry
The bankruptcy of Silicon Valley Bank took a toll on banking stocks last week, including the nation’s biggest banks like Goldman Sachs and Bank of America.
It is feared that this situation, which also causes concern in other countries, will start a ‘new wave of bankruptcy’.
While the bankruptcy of the Bank of Silicon Valley (SVB) went down in history as the “largest bank failure in the United States” since the financial crisis in 2008, there are concerns that it will trigger a “wave of bankruptcy” in the banking industry.
The bankruptcy news of the bank, which came at a time when interest rate hikes continued in the face of high inflation and recession expectations increased, further increased the concerns in global markets.
After pricing that the US Federal Reserve (Fed) would raise the policy rate to a point above expectations, some banks had to realize the losses in their bond positions.
SHARE PRICE LOSE OVER 60 PERCENT
California-based SVB, one of these banks, announced that it will raise more than $2 billion on March 8 after closing its $21 billion bond position with a loss of approximately $1.8 billion.
SVB’s share price has tumbled by more than 60 percent in the past week, as the market heard that the bank was stuck with liquidity.
PANIC INCREASED THE BANK’S LOSSES
Operations were suspended as the bank continued to lose after some venture capital investors advised companies to withdraw their money from the bank.
The rapid collapse of the SVB forced banking regulators to take action, and the US Federal Deposit Insurance Corporation (FDIC) announced on March 10 that it had appointed a trustee to the SVB, causing the markets to plummet.
Industry experts were also stunned by the FDIC’s decision to appoint a trustee to the bank, which it generally announced after the stock market closure, in order to limit the possible losses of customers, in the middle of the day.
The panic caused by venture capitals while trying to overcome the liquidity crisis dragged the 16th largest bank of the USA into one of the biggest bankruptcies in the country’s history within 48 hours.
LAST HAPPENED IN 2008
The largest such bankruptcy was experienced by Washington Mutual during the 2008 crisis.
Washington Mutual, which had 43,000 employees, 2,200 branches and $188.3 billion in deposits in late 2007, went bankrupt when the housing crisis erupted in the United States.
The bank’s operations were sold to JPMorgan Chase after Washington Mutual customers’ withdrawals of $16.7 billion within 10 days drove the bank into bankruptcy. Customers with uninsured deposits of the bank did not lose their money.
The bankruptcy of SVB, whose most of its deposits are not insured by the FDIC, could cause more pain for its clients than Washington Mutual’s bankruptcy.
THE TECHNOLOGY WORLD IS IN SHOCK
Founded in 1983 and specializing in technology industry banking, SVB often provided financing to startups and venture capitals.
The bankruptcy of SVB, which includes companies such as Shopify, ZipRecruiter and venture capital firm Andreessen Horowitz, caused a shock wave in the tech world.
The FDIC established the Santa Clara National Bank of Deposit Insurance (DINB) to protect SVB’s insured depositors and reported that all SVB insured deposits were transferred there. In the statement made by the FDIC, it was stated that customers can access their insured deposits by Monday morning at the latest.
In the news in the US press, it was noted that more than 93 percent of the $161 billion invested in the SVB was not insured by the FDIC.
The FDIC reported that future dividend payments may be made to uninsured depositors as the bank’s assets are sold.
Experts say the bank’s bankruptcy could have far-reaching implications for the tech world and worry for banks.
DECREASE AND INTERESTS IN CRYPTO COINS ARE ALSO EFFECTIVE
Aggressive interest rate hikes by the Fed in the face of high inflation hit the SVB hard as well as the technology sector.
The high debt levels of many companies in the tech sector, especially startups, have left these companies and their ecosystems vulnerable to interest rate hikes.
As companies faced higher borrowing costs, venture capital and other riskier types of investments also became less profitable.
The decline in cryptocurrencies also negatively affected many technology companies.
Many companies, including Facebook, Instagram and WhatsApp owner Meta, Google’s parent company Alphabet and tech giants like Amazon, had to go out of business.
As high interest rates made it more costly to raise funds for many startups, some SVB clients began withdrawing their money to meet their liquidity needs. This caused the SVB to look for ways to meet the withdrawals and to sell bonds.