Potential Impact of Stablecoins on Bank Deposits
- Stablecoin Market Size: According to DeFiLlama, the current stablecoin market cap stands at $308.15 billion, with Standard Chartered estimating that stablecoin growth could lead to a one-third reduction in US bank deposits, highlighting potential financial risks.
- Intensified Policy Debate: US lawmakers are considering a proposal to prohibit interest on stablecoin holdings, and despite banking sector support, the bill's progress has been delayed due to protests from the crypto industry, reflecting the complexities in policy-making.
- Limited Evidence of Deposit Outflows: Aaron Klein, a senior fellow at Brookings, noted that stablecoins are primarily used for crypto-related activities, with little evidence of them draining bank deposits, indicating that the associated risks remain largely theoretical.
- Financial Stability Risks: A representative from the European Banking Authority stated that stablecoins are mainly viewed as payment instruments in the EU, but significant increases in their use could lead to financial stability risks, including bank run risks and regulatory arbitrage issues.
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Technical Analysis for U
Technical Sentiment Analysis for Union (U) As of , Union (U) is exhibiting a Buy technical sentiment. Our proprietary analysis, which aggregates 8 technical signals, shows that 5 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for U stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, U is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Union (U) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.97 | 0.977 | 0.989 | 0.996 | 1.007 | 1.014 | 1.026 |
| Fibonacci | 0.977 | 0.984 | 0.989 | 0.996 | 1.003 | 1.007 | 1.014 |
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