Day: September 18, 2024

S&P 500 Ends 7 Day Winning Streak after 50 bps FED Rate Cut

Posted on by Skerdian Meta

After the major Fed rate cut of 50 bps today, US equities finished the day lower, with S&P 500 making a new high and coming back down. Prior to the FOMC decision, both the Dow and S&P 500 had hit new record highs, but they closed in the red. The key issue during the decision was that markets were near record levels following a seven-day rally, making it a challenging scenario for the Fed to navigate.

S&P 500 and US stocks end lower after the FOMC
S&P 500 and US stocks end lower after the FOMC

Continue reading “S&P 500 Ends 7 Day Winning Streak after 50 bps FED Rate Cut” →

Ethena Labs shutdown website after hack

Posted on by Olumide Adesina

Malicious actors successfully penetrated the website of a decentralized banking service provider on September 18. The team’s notification clarified that neither funds nor risk were drained and the frontend user interface was affected.

 

Users were advised to disconnect their wallets and avoid project-related URLs until further notice. Numerous DeFi protocols, including Ethena, have experienced layer-by-layer compromises. Hackers have occasionally targeted on-chain endpoints and used smart contract flaws to steal money.

On the other hand, malicious actors have been more focused on the web2 services that web3 startups use. In July, hackers targeted the websites of Celer Network and Compound Finance in addition to Ethena’s domain registrar.

The most typical assault usually entails using X-page hijacking to initiate phishing operations. Hackers had access to social media accounts earlier this month, controlled by the Trump family and layer-1 blockchain Near Protocol.

One of the biggest operators of synthetic dollars in DeFi is Ethena. There is a $3 billion supply of its dollar-tied, collateralized token, most of which is released on Ethereum.

Dubbed a “synthetic dollar,” the USDe token yields returns to investors by combining a short-term,perpetual ether futures position with liquid ether staking tokens to sustain a $1′ price

U.S Fed reduces interest rates by 50 basis points

Posted on by Olumide Adesina

The Federal Reserve dropped benchmark interest rates by half a percentage point on Wednesday In an attempt to stave off a slowdown in the labor market, marking its first rate reduction since the early stages of the Covid epidemic.

The Federal Open Market Committee of the central bank decided to drop its benchmark overnight borrowing rate by 50 basis points, or half a percentage point, in response to improving inflation and job market conditions. This move confirmed market expectations, which had lately changed from expecting a fall of half that magnitude.

The previous time the FOMC reduced by half a point was in 2008, during the global financial crisis, except for the emergency rate reduction during COVID-19.
The ruling means the federal funds rate will now be between 4.75% and 5%. Although the rate determines banks’ short-term borrowing costs, it also affects several consumer goods, including credit cards, mortgages, and vehicle loans.

Along with this decrease, the committee showed on its “dot plot” that by year’s end, there would be an additional 50 basis points drop, or about market price. According to the expectations matrix of individual officials, there will be an extra full percentage point of reduction by the end of 2025, followed by a half-point in 2026.

The dot plot indicates that the benchmark rate will decline by roughly 2 percentage points after Wednesday’s change.

The committee concluded that “job gains have slowed and the unemployment rate has moved up but remains low” after evaluating the status of the economy. FOMC members reduced the prediction for inflation to 2.3% from 2.6% before and increased their predicted unemployment rate for this year to 4.4% from the 4% projection in the previous update in June.  The committee lowered its core inflation forecast from June to 2.6%, a decrease of 0.2 percentage points.

Tiny Bhutan Is Home to $780 Million in Bitcoin

Posted on by Timothy St. John

About a third of Bhutan’s GDP is tied up in bitcoin, all of which are operated by that government’s Druk Holdings. The company has more than $780 in the leading cryptocurrency.

Bitcoin
Bitcoin is a big moneymaker for little Bhutan.

The majority of those digital assets come from the country’s mining operations, and there are plans to expand the mining endeavors even further according to Bitdeer, which is the mining management company that is helping Druk Holdings with its work in the area.

 

Druk Holdings has been working to grow its revenue options, making them more diverse. Savvy market insiders have spotted significant withdrawals and deposits being made on Kraken by Druk Holdings, demonstrating the exceptional busyness of the company.

How Bhutan Compares to Other Countries

The small Himalayan nation actually holds one of the largest state-owned bitcoin stashes in the world, ranking at just number four. That is according to the analytic tool Arkham.

Bhutan keeps Bitcoin in a state-owned fund, and it is one of only two countries to do so (the second of which is El Salvador). The United States could join them, if Donald Trump is elected president and has his way when it comes to decentralized finance policy.

Bhutan has a number of Bitcoin mining facilities, and that forward-thinking approach to mining has helped it become a very successful leader in this area, where other countries like Russia and China are pushing miners out. In many parts of Asia, within the same region as Bhutan, crypto mining is illegal, and miners have in recent years fled to other countries to continue their work.  

What makes Bhutan stand out in regards to its Bitcoin holdings is that these have never come from seizures of illegal activities where Bitcoin is simply the currency of choice for the criminal. Instead, all of the Bitcoin is sourced from the government’s own mining operations. 

 

Old FOMC Members Preparing Market for a 25 bps FED Rate Cut

Posted on by Skerdian Meta

This FOMC meeting has been very speculated, with odds of a 0.25% FED rate cut being high initially, but they changed a lot over the last few weeks. After last week’s CPI and PPI inflation numbers the odds of a 50 bps rate cut jumped to 70% almost, but they’re balancing out ahead of the FOMC meeting, however, we’re hearing previous FED members be vocal about a 25 bps cut instead.

The most significant interest rate decision of 2024 is the FED rate cut today
The most significant interest rate decision of 2024 is the FED rate cut today

Continue reading “Old FOMC Members Preparing Market for a 25 bps FED Rate Cut” →

Oil Prices $1 Higher Approaching $70 as EIA Inventories Fall

Posted on by Skerdian Meta

Oil prices have been stable recently, trading around $70 for a few days as all markets await the Federal Reserve meeting later this evening. We are seeing a bounce off the support zone around $68.50s, after the EIA crude inventories showed a -1.63 million barrels decline, coming after a buildup in private A{PPI inventories.

EIA crude Oil inventories showed a drawdown

Continue reading “Oil Prices $1 Higher Approaching $70 as EIA Inventories Fall” →

Crypto Activity in Hong Kong Drastically Increased

Posted on by Timothy St. John

As the Chinese mainland government continues its extensive ban of cryptocurrency, Hong Kong is seeing a sharp rise in crypto activity- the biggest in all of East Asia.

Hong Kong’s crypto ranking has gone up since last year.

Despite severe government limitations on cryptocurrency usage in China, many of the country’s citizens are still using digital currency as a way to preserve their assets. Hong Kong, on the other hand, is a thriving crypto currency community, achieving the 30th highest use of crypto in the world, which is a jump up from the 47th ranking it has in 2023.

 

How much has crypto usage increased in Hong Kong from year to year? Estimates place it at about 86% each year, which is record breaking for that part of the world.

What has helped Hong Kong stand out among its East Asia neighbors has been its decisive efforts in establishing regulations that keep crypto safe, legal, and well monitored. Citizens feel like they can trust the framework that has been set up to keep them safe, and vendors feel like they can operate within that framework reasonably and still turn a profit.

When Crypto Markets Do Not Work

In mainland China, as well as in Russia and other countries with draconian crypto laws in the area, there are stark differences in how decentralized currency is approached. These governments are constantly restricting their laws further and further to drive out crypt miners and vendors and to make it harder on citizens to buy, sell, and own cryptocurrency. The laws are constantly changing, and the requirements to sell crypto are so complex that many crypto exchanges simply do not bother to operate in these areas.

Hong Kong benefits from some autonomy when it comes to its crypto laws. While the Chinese mainland government still exercises control over some aspects of Hong Kong’s government, in some areas it is very hands off, like in the area of cryptocurrency. So, the Hong Kong local government has freedom to create a well regulated market there.

Mainland China fell from 11th to 20th place this year for overall crypto activity as its strict bans on cryptocurrency continue. We will likely see those numbers all even further since the government there sees decentralized currency as an area of serious financial risk.

Chinese citizens still use over-the-counter platforms to buy and sell cryptocurrency, since major exchange platforms have been banned in China. Many of them are using these smaller platforms to transfer their wealth out of China where it will be more secure.

 

 

 

Ripple Update: Analyst Forecasts Volatility For XRP In Anticipation of FED Decision And Chris Larsen’s First XRP In 11 Years

Posted on by Sophia Cruz

Recent developments surrounding Ripple (XRP) have stirred up speculation and market activity. One significant event fueling curiosity was Ripple co-founder Chris Larsen’s first transfer of XRP in 11 years. 

 

Ripple Update: Analyst Forecasts Volatility For XRP In Anticipation of FED Decision And Chris Larsen’s First XRP In 11 Years

 

The newly activated wallet, now holding 50 million XRP, was initiated by a different address associated with Larsen. Market participants and analysts are closely monitoring its activity, attempting to gauge the potential impact of this transfer on the market.

Larsen’s move, involving 50 million XRP tokens, sparked various theories, with some suggesting it could lead to increased market volatility or represent strategic positioning ahead of potential regulatory developments.

Meanwhile, the XRP price has shown signs of strength, with analysts pointing to bullish momentum. According to market data, XRP’s price chart indicates strong resistance around the $0.52 level, with bulls attempting to dominate price movements.

Analysts believe that if XRP manages to breach this resistance, it could trigger a substantial rally. However, traders remain cautious due to external macroeconomic factors, particularly the upcoming U.S. Federal Reserve decision on interest rates, which could influence the entire cryptocurrency market​

In addition to these developments, analysts are predicting heightened volatility for XRP leading up to the Federal Reserve’s decision. Given the uncertainty surrounding U.S. monetary policy, XRP, like many other cryptocurrencies, could experience sharp price swings in the short term. Traders are closely monitoring these developments, as they could provide insight into XRP’s trajectory in the weeks ahead .

In summary, XRP is currently at a pivotal moment, with Larsen’s significant transfer, bullish price action, and impending macroeconomic events all contributing to a highly uncertain yet potentially transformative period for the cryptocurrency. Investors are advised to stay vigilant as the situation unfolds.

Asian Stocks Fall On Cautious Trading And Market Uncertainty

Posted on by Sophia Cruz

In today’s trading, Asian markets remained volatile, as investors reacted to uncertainty surrounding the U.S. Federal Reserve’s upcoming interest rate decision.

 

Asian Stocks Fall On Cautious Trading And Market Uncertainty

 

The Fed is widely expected to cut rates, but the size of the cut remains a topic of debate. While some analysts predict a modest 25-basis-point reduction, speculation about a larger 50-point cut would signal more aggressive economic support. This uncertainty left global markets in a cautious stance​.

Tokyo’s Nikkei 225 rose by 0.7% to 36,462.28, helped by a weaker yen, which boosted exporters. 

The yen weakened after data from the U.S. Commerce Department revealed that while consumer spending slowed in August, the decline was less than anticipated, signaling that the U.S. economy remains relatively robust.

This data helped alleviate some fears of an impending recession, concerns that had been heightened in recent months due to significant shortfalls in job creation figures.

Once the Federal Reserve announces its policy decision, attention will shift to the Bank of Japan, which is expected to keep its policy unchanged during its Friday announcement, having already raised interest rates twice this year for the first time in 17 years.

In economic updates, Japan recorded a merchandise trade deficit of 695.3 billion yen in August, according to the Ministry of Finance on Wednesday. This result exceeded expectations, which had projected a deficit of 1.38 trillion yen, following July’s shortfall of 628.7 billion yen. Export growth for the year stood at 5.6%, below the anticipated 10% rise and slower than the 10.2% increase observed in the previous month. Meanwhile, imports grew by 2.3% annually, significantly lower than the forecasted 13.4% surge, and down from the 16.6% growth rate in the prior month.

Meanwhile, the Shanghai Composite also advanced as local investors returned from a holiday, up by 0.1% at 2,707.64 while Mumbai and Bangkok saw moderate gains. 

However, markets in Singapore, Jakarta, and Taipei fell, reflecting cautious sentiment. Sydney’s market was flat, and Hong Kong and Seoul were closed for holidays​.

Trump Unveils World Liberty Financial Crypto Platform, But Key Questions Remain

Posted on by Arslan Butt
The former president Donald Trump recently announced the opening of World Liberty Financial, a brand-new cryptocurrency exchange that his sons Donald Trump Jr. and Eric Trump will run.
The announcement, streamed from Trump’s Mar-a-Lago resort, followed closely after an apparent assassination attempt at his Florida golf course. Despite the high-profile event, many details about the platform remain vague, leaving investors with questions about its functionality and long-term viability.

Continue reading “Trump Unveils World Liberty Financial Crypto Platform, But Key Questions Remain” →