Rewards Hub 
Main Takeaway: Jay Powell Says The Fed “Little Understands Inflation”
One of the main takeaways from yesterday was US Fed Chair Jay Powell said the Fed now understands how little they understand about inflation, which has confused the markets and caused a two-day selloff that continues in the early market hours. As a result of this plus other factors, the crypto markets are down around 5%, with the large players like Bitcoin, Ethereum, and Solana back at their psychological levels of $20,000, $1,000, and $30. This on top of negative news surrounding the rejection of a Spot Bitcoin ETF, the markets have no positive momentum to run on.
Key Stories: Grayscale Seeks To Challenge The SEC’s Decision On Bitcoin Spot ETF
The world’s largest digital/cryptocurrency asset manager announced it has filed a petition for review to challenge the decision made by the SEC to deny Grayscale Bitcoin Trust a spot Bitcoin ETF. This is really the biggest news since if Bitcoin were to have a spot ETF it would bring in billions of dollars of investor capital into the cryptocurrency space while also closing the gap between regulators and cryptocurrencies. But the SEC has said many times that it would reject this proposal, which is actually in a way counter to what they speak of as investor protection because of their acceptance of a derivatives ETF and a Short Bitcoin ETF. This case will likely go on for over 12 months to 24 months. The main takeaway is a spot Bitcoin ETF is still a long way away.
Investor Insights: Crypto Contagion Is Infectious
3AC is being ordered into liquidation by a British court, BlockFi liquidated a $1 billion dollar loan to 3AC, and now Genesis Trading faces losses in the few hundred million dollar range. As we’ve said before, many of these lending and market-making firms are intertwined and thus in serious trouble due to their exposure to 3AC, Babel Finance, and from the very beginning – their large positions in LUNA and UST staked on Anchor. As hindsight is 20/20, analysts should watch the continued spillovers of these interconnections. It’s not over, especially as inflation remains high with runaway food and energy prices.
Today’s Top Gainers
The overall crypto market cap has dropped back in the middle $800 billion range, depending on estimates, which means the market has fallen over 3% day-over-day. Nonetheless, despite red markets, there are always coins that are having green days. For example, the top gaining coins on Phemex include:
- Sperax (SPA/USDT)
- Harvest Finance (FARM/USDT)
- Tornado Cash (TORN/USDT)
- Spell Token (SPELL/USDT)
- Voyager Token (VGX/USDT)
