<p>Grayscale's premier fund traded higher as its discount narrowed following what some perceived as a successful day in court. Crypto prices slipped across the board, and crypto-related equities also dipped.</p> <p>Shares in the Grayscale Bitcoin Trust rose 4% by 10:30 a.m. EST, according to TradingView data. GBTC's discount to net asset value was 35.7%, following oral arguments in its trial against the SEC. The bitcoin fund has been trading at a discount since early 2021, meaning shares in the fund are cheaper than the underlying bitcoin. The discount has narrowed to its lowest level since October. </p> <div id="attachment_218090"class="wp-caption alignnone" style="max-width: 2373px;"><img class="has-caption wp-image-218090 size-full" src="https://www.tbstat.com/wp/uploads/2023/03/GBTC_2023-03-08_15-31-13.png" alt="" width="2363" height="1332" /><p class="wp-caption-text"><a href="https://www.tradingview.com/chart/xAJYa739/?symbol=GBTC"><span style="font-size: 8pt;">GBTC chart by TradingView</span></a></p></div> <p>The positive moves in GBTC come despite a downward trend in crypto markets. Bitcoin was trading at $22,100, down 0.4%. Ether slipped 0.26% to around $1,550. </p> <div id="attachment_218088"class="wp-caption alignnone" style="max-width: 2373px;"><img class="has-caption wp-image-218088 size-full" src="https://www.tbstat.com/wp/uploads/2023/03/BTCUSD_2023-03-08_15-29-30.png" alt="" width="2363" height="1332" /><p class="wp-caption-text"><a href="https://www.tradingview.com/chart/xAJYa739/?symbol=COINBASE%3ABTCUSD"><span style="font-size: 8pt;">BTCUSD chart by TradingView</span></a></p></div> <p>Yesterday's hawkish <a href="https://www.theblock.co/post/217739/crypto-prices-whipsaw-on-fed-chair-powells-congressional-testimony">testimony</a> from U.S. Federal Reserve Chair Jerome Powell has resulted in interest rate traders re-evaluating bets for the next increase. There is now an almost 80% probability of a 50 basis point increase in the target range on March 22, according to the CME's FedWatch tool. The tool analyzes changes to the rate as implied by 30-day Fed Funds futures pricing.</p> <div id="attachment_218091"class="wp-caption alignnone" style="max-width: 2010px;"><img class="has-caption wp-image-218091 size-full" src="https://www.tbstat.com/wp/uploads/2023/03/target-rate-probabilitie.png" alt="" width="2000" height="1000" /><p class="wp-caption-text"><span style="font-size: 8pt;"><a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch tool</a></span></p></div> <p>Powell told Congress that the latest economic data has been stronger than expected, which suggests the "ultimate level of interest rates is likely to be higher than previously anticipated." The head of the central bank also noted there would likely be softening in labor market conditions to combat inflation. Sen. Elizabeth Warren questioned the Fed Chair's approach to unemployment to lower inflation.</p> <p>It was a mixed day for crypto-related stocks. Beleageured crypto-friendly bank Silvergate Capital shed about 5% by 10:35 a.m. EST according to NYSE data. </p> <p>Coinbase added 3.9%, while MicroStrategy gained about 1%, and Jack Dorsey's Block traded flat.</p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>