Oil dragged down on bank woes
Crude prices are lower as banking worries persist and after Energy Secretary Granholm said refilling the SPR could take years. Banking turmoil will clearly have a negative impact on the economy, possibly crushing small businesses as lending becomes more difficult. There just isn’t a lot of optimism here for the outlook over the short-term for crude oil and that has energy traders hesitant to buy this dip.
Gold rally stalls after hawkish Fed comments
Gold is down after some hawkish comments from Fed’s Bullard was followed by better-than-expected flash PMI data. Bullard’s base case is that bank stress abates and if the economy remains resilient, markets might be wrong in anticipating the Fed’s next move will be a cut. Bullard’s dot is at 5.625%, which means he is pretty confident that the Fed is nowhere near done tightening. Crypto Cryptos are lower as some traders start to doubt how aggressive this market is pricing in Fed rate cuts. Bitcoin was unable to test the $30,000 level and it seems like it is ready for a consolidation phase.
Crypto rally exhausted
Crypto traders are closely following everything with Coinbase. Coinbase CEO Armstrong noted that they weren’t entirely surprised by the SEC notice. No one knows how regulators are going to rule if all tokens are securities.
Coinbase’s success is vital for longer-term crypto growth. In the US, Coinbase is a critical option for how people are getting started with crypto.
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