Bulls will undoubtedly miss the technical pattern that has been guiding the total crypto market capitalization upward for the past 48 days. Unfortunately, not all trends last forever, and the 6.3% price correction on March 2 was enough to break below the ascending channel support level.Continue Reading on Coin Telegraph More
Though inflation by the Fed’s preferred measure has fallen from its mid-2022 highs of around 7% to 5.4% in January, the latest monthly reading showed price pressures gaining at their fastest pace in seven months. That’s despite what last year was the Fed’s most aggressive set of interest rate hikes in 40 years as it took its benchmark rate from near zero in March to what is now 4.5%-4.75%. The acceleration of inflation in January “suggests that the disinflation momentum we need is far from certain,” Daly said in remarks prepared for delivery to the Princeton Economic Policy Symposium. “In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will likely be necessary.”Coming from Daly, whose views are typically in line with Fed leadership, the remarks may add to expectations that Fed policymakers will lift rates higher in coming months than the 5.1% that most of them had penciled in December. Fed policymakers will publish fresh projections for policy and the economy at the close of their upcoming March 21-22 meeting. Some traders are even betting the Fed will deliver a half-point hike in March, rather than the quarter-of-a-percentage point rate hike seen as most likely – a reversion of sorts to the super-aggressive stance the U.S. central bank pursued much of last year. Daly did not use her prepared remarks to offer a view on how big March’s rate hike ought to be, or exactly how high rates should go. Still, she painted a challenging picture for the Fed, not only of stubbornly high inflation now, but of the range of new pressures that could feed into high inflation for some time to come, including corporate efforts to relocate factory production back to the U.S. from abroad, and the ongoing labor shortage at home. She also called out the potential for additional price pressures as firms pass on to consumers the cost of transitioning to lower-carbon energy sources in the fight against climate change.And she said that she was particularly focused on the possibility – so far not in evidence – that an inflationary psychology could take hold in the American mind and make the Fed’s inflation fight even harder. “Achieving our mandated goals takes time and a broader view,” she said. “As policymakers, we have to respond to an economy that is evolving in real time and prepare for what the economy will look like in the future.” More
Federal Reserve officials are converging around the need to keep US interest rates high for longer, reflecting concern about recent hotter-than-expected inflation data and worries about global economic trends that could fuel price pressures.“In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will probably be necessary,” Mary Daly, president of the San Francisco Fed, said on Saturday in remarks at Princeton University. “Restoring price stability is our mandate and it is what the American people expect. So, the FOMC remains resolute in achieving this goal,” she added. Daly’s remarks follow a series of hawkish comments from other senior officials at the US central bank, reacting to economic indicators showing that US inflation is not subsiding as rapidly as hoped. The US labour market also remains remarkably strong. They come ahead of a pivotal month for Fed policy and economic data. Next week, Jay Powell, the Fed chair, will testify before Congress in comments that will set the stage for a highly anticipated Fed policy meeting on March 21-22 including new economic projections and interest rate forecasts.In between, new data on inflation and the US jobs market could determine whether the Fed presses ahead with a new 25 basis point interest rate increase, as has long been expected, or is forced to be more aggressive and move interest rates up by 50 basis points.
“I think my colleagues agree with me that the risk of undertightening is greater than the risk of overtightening,” Neel Kashkari, president of the Minneapolis Fed, said this week at an event in South Dakota. He added that he was “open-minded” about whether to increase rates by 25 or 50 basis points at the next meeting. Christopher Waller, a Fed governor, said on Thursday that “recent data suggest that consumer spending isn’t slowing that much, that the labour market continues to run unsustainably hot, and that inflation is not coming down as fast as I had thought”. Waller added that he hoped future data showed signs of “moderation” and “progress” in the Fed’s goal of cooling the economy, but “wishful thinking is not a substitute for hard evidence, in the form of economic data” and “we cannot risk a revival of inflation”. In her Princeton speech, Daly raised the possibility that a number of structural factors in the US and global economies may have shifted in recent years to create a far more inflationary environment in the post-pandemic world. Over the past decades, a combination of globalisation and technological changes kept prices and wages down, as policymakers struggled to boost employment and get inflation up to the Fed’s preferred 2 per cent target. But Daly suggested that was changing. She said one trend to watch was a decline in “global price competition”. Another was the “domestic labour shortage”, as fewer Americans seek to work and immigration remains subdued. A third was the transition to a “greener economy, which will require investment in new processes and infrastructure”, with companies looking to pass costs to consumers. Daly also warned of the danger that inflation expectations, which have remained under control, could also start to move higher. “If the old dynamics are eclipsed by other, newer influences and the pressures on inflation start pushing upward instead of downward, then policy will probably need to do more,” she said.Speaking to reporters after the speech, Daly said it was too early to discuss the specifics of any policy adjustment at the next meeting, saying she would be looking for “additional information” from the data. More
In a recent tweet, crypto analyst Adam Cochran suggests that the United States Securities and Exchange Commission (SEC) is playing a game of “brutal 4D chess” against Binance, the largest crypto exchange.Cochran based his argument on the recent pronouncement by the SEC that the Binance stablecoin coin, BUSD, was an unregistered security. The analyst believes that the SEC’s move was calculated and designed to force Binance to settle the matter or face the prospect of discovery by a US agency.According to Cochran, if the exchange were to settle, it would likely result in a penalty and possibly industry exclusion for its executives, including removing their market-making entity. By extension, the settlement would block the Voyager acquisition deal, setting a “soft precedent” for the SEC to use as leverage against other US-based exchanges.Furthermore, the SEC’s action already caused a stir in the crypto community, with many speculating on the potential implication for US-based crypto businesses and the crypto industry. However, crypto lawyer David Adler sides with the SEC with his comment. Adler said, referencing the implosion of Celsius Network Voyager:Furthermore, data from the market tracking website, CoinMarketCap, showed BUSD had lost nearly $10 billion of its market share after the SEC action. BUSD had almost $17 billion in market valuation as of January 1, 2023, ranking sixth among the coins with the largest market cap.Unfortunately, BUSD is nearly falling off the top ten ranking as its market share has fallen below the market cap of the popular meme Dogecoin (DOGECOIN).The post Analyst: SEC Is Playing a Game of ‘Brutal 4D Chess’ against Binance appeared first on Coin Edition.See original on CoinEdition More
In a March 3 blog post, Coinbase said One River Digital will transition to become Coinbase Asset Management, “an independent business and wholly-owned subsidiary” of the crypto exchange. One River Digital is registered as an investment adviser under the U.S. Securities and Exchange Commission and has previously accepted investments from Coinbase to scale its operations.Continue Reading on Coin Telegraph More
The growing status of Justin Sun’s TUSD stablecoin amid a falling sector has raised some eyebrows in the crypto industry. Sun’s recent transfer of 100,000,000 USDC to a Binance wallet, as indicated by the blockchain tracker, Whale Alert, further raises the inquisitiveness surrounding TUSD.The stablecoin sector of the crypto market has been in a meltdown since the crash of Do Kwon’s Terra in Q2 2022. The total market capitalization of stablecoin dropped from $200 billion to its current level of $130 billion, reflecting a 35% loss in capitalization.Leading the fall by stablecoins are Frax and BUSD. Both coins lost 65% and 60% of their market capitalization during the meltdown. Even the largest stablecoin issuers in Tether and Circle’s USDC have not escaped the crash, as they have lost between 15% to 25% of their market capitalization since the peak in 2022.Another stablecoin affected by the general meltdown in the Paxos issued BUSD, whose market cap fell from a $22 billion high in 2022 to $10 billion. The recent challenges faced by BUSD from regulators in the U.S. did not help its course either.Amid the crumbling stablecoin market, TUSD has soared. From a value of $750 million in December 2022, the TUSD market cap has jumped to $1.2 billion as of the time of writing, attracting the attention of crypto participants in the process.TUSD’s rise comes against several obstacles, including a perceived abandonment by its auditor, Armanino, implying that the project does not get regular attestations. Meanwhile, other stablecoins like TAUD, TCAD, and TGBP continue to get Armanino’s attestation.Whale Alert’s notification of Justin Sun’s massive USDC transfer to Binance contains no additional detail. Users are making out the information whatever they wish based on individual sentiments.The post More Curiosity Surround TUSD Following Founder’s Whale Transaction appeared first on Coin Edition.See original on CoinEdition More
Popular crypto lawyer John E. Deaton has come out in defense of Ripple CEO Brad Garlinghouse’s recent comments regarding the U.S Securities and Exchange Commission’s lawsuit against his blockchain company. Deaton was responding to criticism from a Twitter user, who claimed that Garlinghouse’s comments were in his self-interest and not in the interest of the crypto industry.Brad Garlinghouse recently appeared in an interview with Bloomberg where he stated that the ongoing lawsuit with the SEC “is unique” and that the verdict of the case will be “pivotal” for the crypto industry. He added that the securities regulator’s approach of regulation by enforcement, was not a healthy way of regulating the market.A user on Twitter took issue with the RIpple CEO’s comments, alleging that they were made in the interest of his company rather than the broader crypto industry. “When SEC was going after Unregistered Coin Offering (ICO) he didn’t say the SEC is attacking crypto space. The narrative changed when Ripple get the lawsuit & said it was an attack on Crypto. Clearly not, you (Ripple) are in the camp of Unregistered ICO, just more sophisticated,” he tweeted.John Deaton responded by pointing out that the SEC had not limited its lawsuit to when, where, and how Ripple and its executives had sold XRP. Instead, the securities regulator opted to attack the token and its sale in the secondary market that had nothing to do with Ripple. Deaton argued that this factor made it an issue for the crypto space as a whole.The post Crypto Lawyer John Deaton Defends Ripple In Twitter Debate appeared first on Coin Edition.See original on CoinEdition More
The Lightning Network (LN) is a layer 2 payment network built to ease the mainstream adoption of Bitcoin (BTC) by enabling faster, cheaper and more reliable peer-to-peer payments. However, c= aims to further the reach of LN through added liquidity and routing services.Continue Reading on Coin Telegraph More
