The Crypto Revival
March 18 2023
Good Morning. As Saint Patrick's Day comes to an end, the market closes out the week in the red with the Nasdaq, S&P and the DOW Jones all down. However, we see a big jump in Cryptocurrency as prices rose Friday. Bitcoin hits a new nine-month high to cap off its 30% rally over the week following bank failure news and more distrust in the U.S. Financial System.
Happy Awkward Moments Day - Robert Baggetta
MORNING OUTLOOK
Recap: As the week of bank failures comes to an end we see a jump in Crypto as well as Gold. Companies like Coinbase have been running full speed under the radar with nearly 130% gains year-to-date. How has no one been talking about this. Some things are just better out in the open and Awkward Moments Day on March 18 is your chance to embrace those embarrassing or awkward moments from your past. Quite an ironic National Day considering we almost saw the U.S. Economy collapse...
CRYPTO
The Crypto Market Revival
Amid the impressive rally in Crypto prices this week, we'd expect to see shares of Coinbase rise. Coinbase is up nearly 40% this week, following the news of U.S. Bank conundrums. In addition to surging token prices, SEC Commissioner Gary Gensler demand that crypto exchanges register with the Securities and Exchange Commission.
ABSTRACT: The government wants control of crypto now...
Coinbase's chief policy officer replied to this saying "There's just no way to do it." That being said, with the confidence in American currency and U.S. banking system plummeting by the hour, crypto has gained the attention of many investors. Despite original promise, crypto has acted as hedges against inflation, which provides us a confusing landscape as to why crypto is going up.
As the Fed continues to try and make the U.S. dollar stronger through monetary contraction, we see a relation between bank failures and the rise of cryptocurrencies. Maybe that crazy uncle who told you to get some Bitcoin may be right after all.
ECONOMICS
The Fed's Plan After Hectic Week
If it isn't damaged, avoid adjusting it. This phrase should be attractive to everyone, including the most influential central bankers worldwide.
Before the weekend, it seemed highly probable that the Federal Reserve would continue with its most rapid rate-raising plan since the 1980s, authorizing the ninth consecutive rate hike at the March 21-22 Federal Open Market Committee (FOMC) gathering. Chair of the Fed, Jerome Powell, cautioned that officials could opt for a more daring half-point hike if inflation and employment conditions exceeded expectations.
However, California's Silicon Valley Bank (SVB) crumbled, and two days later, New York's Signature Bank fell as well.
Expert Predictions
Experts still say that the events that unraveled this week have no correlation to what happened in 2008, however whether any recoil could spread to other Financial Institutions is still unknown. The question is, would the continuation of stronger monetary tightening cause more damage? Announcements to loan cash to these banks were settled and it seemed to have been the right move to avoid the broader contamination of the U.S Economy
领英推荐
RUSSIA - UKRAINE.
China is the Good Guy now?
On Thursday, the foreign minister of China contacted his Russian equivalent to advocate for a peaceful resolution to the Ukrainian war, cautioning that the situation might spin out of command. This alert was made public as China declared that President Xi Jinping is scheduled to journey to Moscow in the beginning of the forthcoming week to discuss with Russian President Vladimir Putin.
China has declined to censure Russia, however, it has criticized Western restrictions and blamed NATO and America for instigating Putin, exacerbating tensions between the East and West. While China has not criticized Russia, it has said the sovereignty and territorial integrity of all counties should be respected, but its unclear whether Beijing plans to position itself as a neutral peacemaker or Moscow supporter.
The White house responded to this saying it should include Zelenskyy in this conversation with Putin, to ensure a one-sided deal isn't reached...So is China acting chivalrous? Or do they have plans for something else.
MOVERS
Microsoft, Baidu, Gold and UK technology superpower?
Microsoft Corp: shares rallied for their best week in nearly eight years as the collapse of Silicon Valley Bank and the popularity of OpenAI’s ChatGPT drove investors to an established tech name with an interest in the next big thing. Microsoft MSFT, +1.17% shares ended Friday with a 12.4% gain for the week, their best weekly gain since April 24, 2015, when shares surged 15% over the week after the company predicted growth in its cloud business.
There's a new AI in town: Baidu (BIDU) rose 6.3% after the China-based company announced it became the first provider allowed to run a fully driverless robo-taxi AI service in Beijing.
Gold: It looks like St Patty's issued a lingering desire for investors to purchase some Gold on Friday with the futures up 3.68% on the day. Or was it the bank collapses.
UK is Playing Civilizations: UK Government announces ￡3.5bn funding to become global science and technology superpower. "As part of his Spring Budget, UK Chancellor of the Exchequer, Jeremy Hunt, announced the sizeable funding to position the UK as a global superpower in the science and technology sector. This substantial fiscal power will help support the Department for Science, Innovation and Technology in achieving vital UK priorities, such as boosting the economy and creating lucrative job opportunities."
NEWS
OTHER MARCH 17 NEWS
General Strike Brings Greece to Standstill Amid Anger over Fatal Train Crash. Fresh protests erupted across France Thursday after President Emmanuel Macron bypassed Parliament and invoked executive powers to push through a highly contested law raising the retirement age from 62 to 64.
Biden Approves Sale of 220 Tomahawk Cruise Missiles to Australia. Australia has agreed to purchase 220 Tomahawk cruise missiles from the United States at a cost of nearly $1 billion.
White House Threatens to Ban TikTok Unless Chinese Owners Sell Stakes. The Biden administration is threatening to ban TikTok if its Chinese owners refuse to sell their stake in the U.S. version of the hugely popular video-sharing app.
High Levels of Toxic Chemicals Detected in East Palestine Soil After Train Derailment. In East Palestine, Ohio, newly released data shows soil around the site of February’s Norfolk Southern train derailment contains levels of dioxin hundreds of times higher than what’s considered safe.
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