Wednesday 28 September 2022
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Bitcoin rallies after Fed interest rate hike, but bears can still win Friday’s $1.76B options expiry

Bitcoin's (BTC) price has been stuck in a descending channel since July 20 and it is currently heading toward the $20,000 support by the end of July. Adding to this bearish price action, BTC is down 50% year-to-date, while U.S. listed tech stocks, as measured by the Nasdaq-100 index, accumulated a 24% loss. Bitcoin USD price index, 4-hour. Source: TradingViewAs the U.S. Federal Reserve tightens its economic policies by raising interest rates and scaling back debt asset purchases, risk assets have reacted negatively. Fed chair Jerome Powell is set to wrap up a two-day meeting on July 27 and market analysts expect a nominal 0.75% interest rate hike. Tensions in Europe escalate as the Russian state-controlled gas company Gazprom is slated to cut supplies to the Nord Stream 1 pipeline starting on July 27. According to CNBC, the company blames a turbine maintenance issue, but European officials think otherwise. Aiding tech stocks' performance on July 27 was the U.S. Senate approva..

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Is the end of this crypto winter in sight? | Find out now on Market Talks with Ted Warren and Mark Yusko

In this week's episode of Market Talks, we welcome the founder, chief investment officer and managing director of Morgan Creek Capital Management, Mark Yusko. Mark W. Yusko is an investor and hedge fund manager. He is the founder, chief investment officer and managing director of Morgan Creek Capital Management and also the Co-Founder & Partner of Morgan Creek Digital. The main topic for discussion with Mark is if we are finally at the end of this crypto winter and what that could mean for the future of the crypto market. Are we going to continue to move upwards in price or is there another fall below $17K not far off? With everyone's eyes on the latest FOMC meeting, we ask Mark about his thoughts on the importance of the FOMC meeting and what the hike in interest rates means for you as an individual and the markets as a whole. Even though some people might not want to admit it, it seems the US economy is in a recession, we ask Mark what his thoughts on the matter are and a..

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Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump

Bitcoin and the rest of the crypto market have been in a festive mood in response to the U.S. Federal Reserve’s interest rate hike, sending both Bitcoin and Ethereum climbing in prices. The Fed’s announcement has sent Bitcoin’s price up by 5%. As of this writing, Bitcoin is trading at $22,837, up 7 percent in the last 24 hours. More so, Ethereum’s price also spiked by 11.6%; hitting $1,550, data from Coingecko show, Thursday. In fact, the entire crypto market is on a positive outlook with the total crypto market cap at $1 trillion. Bitcoin was down the past week with its price plunging below $21,000. But, with Fed’s latest 0.75% rate bump, the BTC price has skyrocketed once again. Fed Battling Inflation With Interest Rate Hikes The Federal Reserve attempts to buffer inflation with a 0.75% rate increase. The central bank’s move on the rate hike is said to be in the country’s best interest especially since the U.S. Bureau of Labor Statistics recently broke it to the public that the Consumer Price Index or inflation rate is at 9.1% in June, a 40-year high. The Fed’s continuing rate hikes have sent the negative message that the country could be in danger of a recession. It triggered a domino effect. Following the Fed’s rate hike, the U.S. interest rates have also spiked at a range of 2.25% and 2.5% which is at extreme levels since the COVID-19 pandemic started. The U.S. central bank has recently revealed this development at the Federal Open Market Committee held Wednesday. Related Reading | BNB Basks In The Green As Price Glows 5.84% In Fields Of Red Survey: 96% Of Americans Worried About Inflation The Fed has been trying to put a rein on the high prices with an increase in interest rates for the longest time. U.S. Bureau of Labor Statistics disclosed that the biggest factors adding up to the inflation rate are shelter, gasoline, and food price hikes. Reportedly, a CNBC poll revealed that around 96% of Americans have been particularly worried or concerned lately regarding the gas, shelter, and food price increase. Image: Beinchain To beat inflation, the Fed has the option to constrict the supply of money. So, it resorts to bumping the interest rates which in effect, makes loans expensive. The 0.75% rate hike was expected although it was earlier ruminated that the central bank may go for a 1% rate hike when inflation mellowed in June. Related Reading | GNOX Set To Overtake APE, MATIC As Token’s Price Continues Ascent The recurring high prices and interest rate hikes have fueled fear in citizens as the danger of a recession continues to escalate. It has heightened levels of uncertainty in global markets especially because a recession would most likely happen following two straight quarterly GDP drops. The GDP as presented by the Bureau of Economic Analysis has shown that the economy has dwindled by 1.6% as shown in the first financial quarter and economists are concerned that a decline is possible too for the second quarter. GDP Q2 numbe..

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CME crypto futures see record activity during bear market

Bitcoin (BTC) and Ether (ETH) derivatives contracts offered by CME Group saw record activity in the second quarter, offering tangible evidence that professional traders were still accessing digital assets during the bear market. The average daily open interest (OI) across CME’s crypto futures products reached 106,200 contracts in the second quarter, the highest on record, the company disclosed Thursday. In futures markets, OI reflects the total number of derivatives contracts that have not been settled. In terms of average daily volume, Bitcoin futures saw 10,700 contracts traded in the second quarter; Ether’s daily volume was 6,100 contracts. During the week of June 21, large open interest holders (LOIH) accessing CME Group’s crypto products reached a high of 404, signaling “growing interest from institutional and large sophisticated investors,” the company said. Despite extreme market volatility for Bitcoin and Ether, CME Group’s crypto futures products have been “a haven of consi..

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Why “The Merge” Is Not Priced In, Says Ethereum Inventor Vitalik Buterin

Ethereum and the crypto market slightly recovered some gains after the Federal Reserve (Fed) announced a 75-basis point (bps) interest rate hike. There was no surprise from the financial institutions, and the second crypto by market cap might be able to extend the bullish trend without external distractions. Related Reading | TA: Bitcoin Price Restarts Increase After Fed Rate Hike But Resistance Intact At the time of writing, Ethereum (ETH) trades at $1,640 with an 11% profit in the last 24 hours and a 7% profit over the past week. The cryptocurrency has reclaimed its position as the best-performing asset in the top 10 by market cap. ETH’s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview In an interview with Bankless, the inventor of Ethereum spoke about what could be the most bullish milestone for this blockchain since its inception: “The Merge”. The event that will complete ETH’s migration into a Proof-of-Stake (PoS) blockchain with the promise of bringing more scalability and better performance to the network. For months, there has been an ongoing debate about the impact of this event on the price of Ethereum. Some market participants believe “The Merge” is already priced-in, meaning its impact is currently reflected on ETH’s price, others believe the opposite. Buterin himself is amongst the former, he believes “The Merge” is not priced-in from a market and psychological standpoint. The positive impact of this event will have implications with the potential to ripple across the entire Ethereum ecosystem. These effects will kick in when “The Merge” has been deployed on the mainnet. Buterin said: The Merge is looking more and more in the review mirror. It’s looking more and more like “hey, this things is going to actually happen and when it happens I expect (developer’s) morale is going to go way up (…). I basically expect that “The Merge” is not going to be priced-in, by which I mean not just in market terms, but in psychological, and narrative terms (…). What “The Merge” Could Spell For The Price Of Ethereum Once “The Merge” has been implemented, Buterin predicts that Ethereum will change a “lot of minds”. This could potentially hint at the surge in the adoption of this network’s ecosystem. There has been a lot of talk about cryptocurrencies and their alleged negative impact on the environment. “The Merge” is set to reduce Ethereum’s carbon emissions by 99%. This could translate into more institutions and capital previously sidelined from the crypto space because of its environmental footprint thus, why this event might have profound implications in terms of adoption, price appreciation, and development. Related Reading | TA: Ethereum Surges 15%, Why ETH Could Climb Above $1,700 On the latter, Buterin celebrated Ethereum’s capacity to improve its development speed across the years. After “The Merge”, ETH core developers will focus on scalability and building the infrastructure needed for mainstream adoption.

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Bitcoin price battles $23K as data says US in ‘technical recession’

Bitcoin (BTC) regained more lost ground on the July 28 Wall Street open amid confusion over whether the United States had entered a new recession. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewAnalysts call recession for United States on GDP printData from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it tested $23,000 for support after a leg up on the previous day's Federal Reserve rate hike. Momentum benefited from U.S. GDP data, which fell for a second quarter in a row, thus meeting the requirements for a recession in the economy. The situation remained unclear, however, thanks to comments from both Fed chair Jerome Powell and the White House, both of whom insisted that no recession had arrived or was even forecast. "While Powell stated that the U.S. is not in a recession, numbers from GDP gave two consecutive quarters of negative growth, meaning that the United States is in a recession!" Cointelegraph contributor Michaël van de Poppe summarized the..

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Tokenomics not Ponzi-nomics: Influencing behavior, making money

Economics is the study of human behavior involving scarce resources — and the effects those behaviors have on those resources, explains Roderick McKinley. Tokenomics in crypto is a related but different field. Tokens are a way for projects to raise funds and build communities, and designing the way they work can be much more complex than traditional equity raises — and potentially much more problematic. “In tokenomics, the token or digital asset is the scarce resource. But we can now design features for these programmable digital assets, influencing how people behave and interact with each other, often creating new possibilities for exchange altogether,” McKinley says. He explains the distribution of tokens and the outcomes of that distribution are key matters for investors and for how the business ends up operating. Roderick McKinleyMcKinley has worked on a range of different projects, including ParallelChain, GBC AI, Avarta, Fluid, ShopX, Terona and Kasta. But what is it that a toke..

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Tron (TRX) Extends Gains As Prices Break Away From Support Point

While the rest of the crypto market is in a state of frenzy, Tron (TRX) price dominance is on for the second day in a row as its price swerves away from the support line. Tron has had a swift recovery so far. TRX/USD swished to a 3% jump and intraday high of $0.06631 today in contrast to yesterday’s low that registered at $0.06383. The rebound was seen after TRX has been moving in the red zone for several days now. The cross signals seen in the daily chart usually hint a downtrend but it somehow triggered a bull run. Related Reading | Tezos (XTZ) Price Movement Indicates Looming Price Drop TRON RSI To Cross 49.85 Resistance Line This will be tested soon as the RSI is seen to cross the 49.85 resistance level. The current price of the TRX/USD pair is at $0.064 and has declined by 2.15% in the past 24 hours. In addition, trading volumes have reduced by 1.89 as seen overnight. TRX bears are seen to ascend in the coming days. A few days ago, technical indicators all show a bearish perspective for Tron which has to retrieve the resistance level at $0.07 to gain back the confidence of investors and step on the gas for a bull run. But, it seems the odds aren’t in favor of a bullish standpoint considering that the bears have already been collared in the market. Once the support level is hauled back to $0.06, then it’s the break the bulls needed to reclaim the market. Crypto total market cap at $1.02 trillion on the daily chart | Source: TradingView.com Can Bulls Tilt The Boat? TRON’s RSI is transacting at around 40.85 following the failure to maintain the bullish streak impeding the bears’ dominance. Currently, the RSI line reveals a divergence showing that transactions are happening below the 14-day average line. With that being said, it means trouble in paradise for the bulls who are eyeing the resistance line. The bears seem to have dominated on the red line but can the bulls tilt the boat? Can TRX beat the selling pressure? Tron is gaining in prices today and the bulls are definitely taking the lead hinting that anything is indeed possible. Related Reading | BNB Basks In The Green As Price Glows 5.84% In Fields Of Red Tron has been trying to outstage Ethereum since day one. It’s a platform that supports DeFi applications and smart contracts. Tron is looking to decentralize the internet and outperform Google and Facebook. Users will need to buy and hold TRX to use the network’s storage, CPU, RAM, and other resources. Following that, users can freely transact on the network. Featured image from AAX Academy, chart from TradingView.com

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Condense to live stream IRL events into the metaverse

The Metaverse infrastructure company closed a seed funding round to continue the development of 3D live streaming technology. Condense raised $4.5 million in a round led by LocalGlobe, 7percent Ventures and Deeptech Labs. The technology employed by Condense live streams 3D videos into the Metaverse via games and existing platforms. The firm states that such technology has the potential to create an entirely new world of content creation and entertainment engagement with real-time connections. Additionally, Condense had participation from angel investors and music industry insiders such as English footballer and platinum-selling artist Tom Blomfield (Mozo) and music manager Grace Ladoja. Funding from this round will go toward relationship building with content creators, artists, labels and existing Metaverse platforms. The underlying technology of Condense utilizes, “cutting-edge computer vision, machine learning and proprietary streaming infrastructure to capture and embed live 3D v..

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