![GBTC discount narrows during SEC hearing, yield curve inversion deepens; 60% probability for 50bps hike](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/01/macro-insight.jpg&w=70&h=37&q=75)
Quick Take
Result of Powell Speaking
- The US 10-year minus 02 years has reached -100 bps inversion.
- The forward growth outlook is a full percentage point lower than the expected policy rate.
- Levels of policy error not achieved since February 1980.
- Inversion points to a recession, but a larger inversion doesn’t not mean a faster or deeper recession.
- While the terminal rate is now forecasted at 5.6% for October 2023 and a 60% probability of a 50bps rate hike during the March FOMC meeting.
![US10Y-US02Y: (Source: Bloomberg)](https://cryptoslate.com/wp-content/uploads/2023/03/US10.jpg)
![Meeting Probabilities: (Source: CME Fed Watch Tool)](https://cryptoslate.com/wp-content/uploads/2023/03/5.77.png)
Result of Grayscale vs. SEC hearing
- So far, GBTC is up roughly 9% today due to the current hearing, Grayscale vs. SEC.
- The discount to NAV is roughly 40%, which assumes Grayscale’s chances of a spot ETF have increased.
- The gap was as narrow as -35%.
- GBTC would have a pathway to convert to NAV.
- BTC remains roughly flat for the day at $22,300
![GBTC: (Source: TradingView)](https://cryptoslate.com/wp-content/uploads/2023/03/GBTCA.png)