A surprise surprise! The Federal Reserve has raised interest rates by 25 basis points, resulting in a new target range of 5.25%-5.5%. There was little volatility in both stock and crypto markets as the market had already foreseen this move.
“Recent indicators suggest that economic activity is growing at a moderate pace,” the FOMC statement said.
Nevertheless, the Fed will continue to assess bearish economic data and emerging information before making a final decision on whether to raise rates further this year.
On the bright side, although macroeconomic conditions remain somewhat uncertain, Fed officials are no longer predicting a recession, meaning that inflation will eventually end even without a major global recession. means that it may decrease.
Crypto Market Volume Hits Multi-Year Low
Liquidity in the cryptocurrency market has dried up after last year’s gradual liquidation that wiped out major players and cooled market sentiment. Bitcoin’s 7-day average trading volume hit a 30-month low last week, plummeting to levels before BTC broke $20,000 in December 2020. Clearly, market participants are still doing very little.
On the other hand, there is also a remarkable accumulation period in such a low activity period. Multiple on-chain indicators show that current market trends are reminiscent of previous bull market beginnings.
Bitcoin whales holding between 1,000 and 10,000 BTC aggressively stack sats. Bitcoin holders are taking their coins away from exchanges.
The cumulative value is 0.6, which represents the historically sustainable zone.
Notable mention
Crypto Review 1H 2023
The first half of 2023 has been a very turbulent year for the cryptocurrency market, from banking crises and regulatory actions to changing conditions in cryptocurrency hubs. In his latest installment, he took a step back to reflect on the events of the first half of 2023 and shared our take on what trends may dominate in the second half.
industry shaker
Putin signs law on digital ruble
Russian President Vladimir Putin has passed a new law giving the “digital ruble” legal tender status. The country’s central bank, the Bank of Russia, will act as the platform operator for the Central Bank Digital Currency (CBDC) after President Putin’s approval, and will begin testing from August 1. The bill also provides legal definitions for users and lays down guidelines for banks under this framework.
House Financial Services Committee Votes on Cryptocurrency and Blockchain Bill
The House Financial Services Committee on Wednesday called for details on two bills aimed at creating a coherent legal framework for cryptocurrencies and regulating blockchain-related issues. A majority of lawmakers voted for him, Mr. H.R. 4763, Financial Innovation and Technology Act for the Twenty-First Century, and H.R. Blockchain Regulation and Guarantees Act of 1747. Both bills were sent to the House of Representatives for a vote.
Kuwait Bans Trading in Cryptocurrencies and Assets
Kuwait’s main financial regulator, the Capital Market Authority (CMA), has issued a circular on July 18 regarding the supervision and issuance of crypto-assets in Kuwait. The circular explicitly reiterated the “absolute ban” on various cryptocurrency use cases, including payments, investments and mining. It also prohibits local regulators from issuing licenses to companies that wish to offer virtual asset services as commercial entities.
World Coin launch sees mixed reactions
World coin, recently launched by Sam Altman, received mixed reactions. While some praise the concept of proof of identity (PoP), others, such as Ethereum co-founder Vitalik Buterin, have raised concerns about its privacy, security, centralization and accessibility. But people still sign up for iris scans in exchange for a 25 WDC bounty, especially in low-income countries where the bounty can actually be spent and privacy laws are scarce.
