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The SEC Has Denied Grayscale Investments’ Attempt to Convert Its $13 Billion Spot Bitcoin Trust Into an ETF.

Originally published on Best Stocks

Source: Getty Images

An ex-US Solicitor General has been hired by Grayscale to fight the SEC in one of Bitcoin’s most crucial legal battles to date, with the assistance of the wider crypto sector.

A “crypto winter” in which digital asset values plummet, venture capital funding dries up, and thousands of jobs are lost is now unlikely thanks to the SEC’s ruling.

Already, the frigid winds have arrived. From over $3 trillion in November 2021 to $850 billion in November 2021, the global value of crypto has plummeted, with Bitcoin on course for its lowest quarter since 2011.

Cryptocurrency’s sparkle, scams, and flippancy toward conventional banking are being blamed for its problems. However, this quarter’s price decline has been fueled by the collapse of stablecoin Terra, breakdowns in the popular digital asset lending area, as well as the failure of a big hedge fund that might spread contagion.

However, the weather can’t always be controlled by crypto. The stock market is Bitcoin’s greatest issue right now. The S&P 500’s bear market, fueled by inflation, aggressive Federal Reserve interest-rate rises, and the danger of recession, has put tremendous pressure on tokens due to a strong link formed over the last year.

Despite Bitcoin’s anti-establishment stance and emphasis on decentralization, Fed head Jerome Powell is its greatest chance for a springtime revival.

The Clock Is ‘Running’ on Putting an End to High Inflation, according to Powell.

According to Federal Reserve Chairman Jerome Powell, the “greater error” would be to fail to restore price stability and stamp out rising inflation, not to raise interest rates too high.

Powell said on Wednesday at the European Central Bank’s annual economic policy conference in Portugal that the central bank must hike rates quickly to prevent a bigger threat of higher inflation from being entrenched. Powell said, “There’s a timer going here.”

According to Wall Street Journal polled economists, the likelihood of a recession within the next year has risen to 44%. As expected, consumer expenditure expanded at an annual pace of only 1.8 percent in the first quarter, down from an earlier forecast of 3.1%.

S&P Chief Economist Beth Ann Bovino stated that momentum is projected to keep the U.S. economy out of a recession this year, but rising supply chain disruptions, extraordinarily high prices, and aggressive Fed policies mean it is unlikely to emerge from 2023 “unscathed.”

A big hike in interest rates is expected in July, according to Federal Reserve Bank of Cleveland President Loretta Mester. A 0.75-percentage point hike may be the best option since she hasn’t seen inflation data that merit going back to a half-point rise.

What’s Next: Powell has hinted that the Fed’s meeting on July 26-27 will see another raise. A 0.75-percentage-point increase this month was the largest since 1994, and the third time the Fed has lifted the federal funds rate since March.

Analysts see dangers for the IT sector shortly.

As a result of weaker expenditure, increasing gasoline prices, and increased recession risk, J.P. Morgan JPM –0.45 percent technology analysts cut their financial estimates for all 26 of the firms they cover. Tech giants like Google’s Alphabet GOOGL –0.27 percent are unable to counteract bigger macro trends, according to the authors of the report

If Apple’s privacy measures don’t further strain Google’s search business, Doug Anmuth expects the company’s advertising will do better than the rest of the industry. Amazon, Booking Holdings, and Uber are among their top selections in a slump because of their market dominance and other factors.

With privacy reforms and TikTok on the rise, Facebook’s Meta Platforms stock has fallen more than 51% this year. “Almost no firm is immune to an economic slowdown,” says Monness Crespi Hardt analyst Brian White in cutting his price objective for shares from $300 to $250.

Arya, of BofA Global Research, feels the semiconductor sector’s misery is far from over, despite the industry’s 33% decline in value this year. From 13 percent to 9.5 percent, he now anticipates the industry’s income to shrink by 1 percent in 2022.

Skyworks and Qorvo have been downgraded from Neutral to Underperform by Arya, citing sluggish growth in the market for 5G cell phones as the reason. Additionally, he downgraded Teradyne and Texas Instruments from Buy to Neutral.

Now What: Wedbush analyst Daniel Ives believes that Apple will gain from pent-up demand for the iPhone 14 as it prepares to finish out its June quarter. He estimates that 240 million of around one billion iPhones haven’t been upgraded in 312 years.

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