Monthly Archives: März 2023

Global Uncertainty Hits Gold, Oil Prices Plunge

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• Gold prices have risen 5%, reflecting financial uncertainty, while oil prices have dropped 15% in the past month, suggesting an economic downturn.
• Bitcoin has also seen a 25% increase from its lows after the fallout of SVB and further contagion spreading into Europe.
• Credit Suisse’s major headlines suggest that rate hikes may be on the horizon, further illustrating global financial distress.

Global Financial Distress

Gold is pricing in global financial distress due to the fallout of SVB, which spread contagion into Europe. As a result, Bitcoin touched a low of $19,500 before recovering by 25%, while Gold rose 5%. This indicates that markets are aware of the potential for further economic distress.

Oil Prices Predict Recession

In contrast to Gold prices, crude oil has dropped by 15% in the past month and is considered an indicator of inflation and recession. This suggests that an economic downturn may be imminent as Credit Suisse’s headlines suggest rate hikes could be coming soon.

Bitcoin Price Increase

Despite initial losses from SVB’s fallout, Bitcoin saw a 25% recovery from its lows and suggests markets are becoming increasingly aware of global financial distress. This reflects Bitcoin’s role as an asset that can both price in risk and provide safe haven during times of market volatility.

Rate Hikes on Horizon?

Credit Suisse’s major headlines have increased speculation that rate hikes could be on the horizon, which would create additional pressure on already fragile economies around the world. As such, it is important to closely monitor these developments to get a better understanding of how they might impact markets going forward.

Conclusion

All this suggests global financial distress is increasing and investors should keep a close eye on upcoming developments in order to understand how they might affect markets going forward. While Gold is pricing this in with its 5% rise, oil’s 15% drop predicts an impending recession – making it even more important to stay informed about current events within finance and economics

Judges Question SEC’s Logic on Grayscale’s Bitcoin Spot ETF Appeal

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• Judges from the District of Columbia Circuit Court of Appeals questioned the SEC’s logic in not approving Grayscale Investments’ spot Bitcoin ETF.
• Grayscale’s lead counsel argued that the SEC has approved futures-based ETPs and there is no difference between them and a spot Bitcoin ETF.
• The SEC lawyer argued that Grayscale needs to provide evidence to show that the spot market prices do not lead the futures market prices.

Judges Question SEC Logic

Federal appellate court judges have questioned the logic behind the US Securities and Exchange Commission (SEC) not approving Grayscale Investments’ spot Bitcoin exchange-traded fund (ETF). During a hearing on March 7, Chief Judge Sri Srinivasan, along with Judges Neomi Rao and Harry Edwards of the District of Columbia Circuit Court of Appeals heard arguments from both sides.

Grayscale Argues for Spot ETF Approval

Grayscale’s lead counsel Don Verrilli told judges that the SEC’s rejection of their application for a spot Bitcoin ETF was „arbitrary“ as it had already approved futures-based ETPs and argued that there was no difference between them. He also asked for a path forward towards regulation.

SEC Argues Evidence Is Mixed

The SEC lawyer Emily Parise said that Grayscal’es argument was an „unsupported empirical leap“ as there wasn’t enough data to prove causation between spot and futures markets. She added that Grayscale needed to provide evidence showing how these two markets function together in order to alleviate any concerns held by the regulator.

Judge Points Out Flaws In SEC Logic

Judge Neomi Rao pointed out during the hearing that while Grayscale has provided ample information regarding its arguments, it seems like “the [SEC] has to explain why they [Grayscale] are wrong in the evidence they have proffered” regarding approval for a spot Bitcoin ETF. Parise then responded saying that while there is mixed evidence, she believes Grayscale can still satisfy their concerns if they provide more studies proving causation between these two markets.

Conclusion

It remains unclear how this case will play out but what is certain is that both sides will continue making their respective arguments until a verdict is reached by either party or through further appeals down the line.