The Market Is Red Again

The Market Is Red Again

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2023-03-11 22:38:43

Market situation

The market continues to receive bad news about the market. US stocks yesterday continued to decline in all three indexes. Oil rose slightly to 75 USD/barrel. And gold fell to 1796 USD/ounce.

Bitcoin is still holding around $16,800. Altcoins rose slightly.

Over the past week, Coinshare statistics show that digital asset investment products have seen a total outflow of $30 million. Money outflows across most asset classes showed widespread negative sentiment last week. In part, it is possible that hedge funds are concerned about the Fed’s announcements on interest rates.

The housing market in the United States has cooled down. According to the National Association of Home Builders, homebuilder sentiment fell to 31 points in the 12th month, the lowest level since 2012. In this indicator, builders participate in business assessments. current single-family sales, sales prospects for the next six months, and potential buyer traffic. When this index is below 50 it is considered negative.

High interest rates have really had a deep impact on the US real estate market. This makes people limit and reduce buying houses. Therefore, it is more difficult for construction companies to sell houses. Coupled with the fact that construction costs have increased by more than 30% since the beginning of this year, builders are still finding it difficult to lower prices. About 35% of builders saw a drop in home prices in December, down from 36% in November.

The Housing Association also predicts the dismal housing situation will continue into 2023, and the agency forecasts a recovery will come in 2024.

Sam Bankman-Fried refuses extradition

Reports over the weekend indicated that Sam Bankman-Fried (SBF) would agree to extradition. However, at the court hearing on Monday, he said that he has not yet accepted extradition. The SBF asked to see a copy of his federal indictment before agreeing to return to the United States. He will return to Fox Hill prison rather than turn himself over to US custody.

Following the FTX crash, US Banking Commission Chairman Sherrod Brown recently suggested that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should consider a ban on FTX. with electronic money. However, he also said that the proposal is difficult to implement. Because when the US banned crypto, it still thrived in the world. And then, they won’t be able to influence in this market. And the reason FTX is wrong is the company, not the crypto market.

Congressman Emmer also maintains that crippling regulation will stifle industry innovation in the US, causing the country to lose its dominant position in the global market. What many believe has been happening. Finally, he also said that it is likely that the US will have laws to regulate the market instead of banning. The crypto market has also provided jobs and tax contributions to states such as mining companies, companies providing exchange services, trading, investing, etc. in the crypto market.

Grayscale proposes for investors to withdraw money

In one Letters To investors, Grayscale Investments is proposing options to return part of its Grayscale Bitcoin (GBTC) product to customers if the SEC refuses to approve a spot bitcoin exchange-traded fund (ETF). ).

One option is that an investor can offer to buy up to 20% of the outstanding shares of GBTC. However, the bear market combined with the fall of FTX as well as the way GBTC is performing makes it currently trading at a 49% discount to net asset value (NAV).

Grayscale CEO Michael Sonnenshein’s letter attempted to assuage shareholders’ concerns following a volatile month in the crypto market following the crash of FTX. It seems that Grayscale is also under a lot of pressure because of the promise of an ETF soon for investors to withdraw money from GBTC. There is currently no information on if this proposal is approved, investors will receive cash or BTC.

Grayscale’s parent company is Digital Currency Group (DCG), so some are concerned about the possibility of this proposal being made so that DCG can withdraw money from their GBTC in order to fill the existing financial hole. If this is true, it will be a lot more worrying for the crypto market.

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