The Fed Will Raise Interest Rates Again, But Can We Still Be Optimistic?

Market situation

US stocks last weekend was a losing session in all three indexes. Futures appear to be flat but still tilted to the downside. Oil fell to around 93 USD/barrel. Gold contract price held at 1727 USD/ounce.

Bitcoin price remains firmly above $20,000. Altcoins fell slightly in the same trend.

Although many investors are scared by consecutive events from Terra, 3AC, Voyager, …, the amount of BTC withdrawn from the exchange is still dominant.

Similarly, ETH is also in the trend of being withdrawn from the exchange more than deposited.

Next week, the market will receive information about the US real estate market through the S&P Case Shiller index on Tuesday. Data on unemployment or PCE inflation will also be announced this week. Regarding the rate of interest rate increase, it is also leaning towards the direction that the FED will increase by 0.75%. There will be a meeting of the Fed this week to make the next decision on interest rates.

Recent data shows that even though the Fed raised rates, the market corrected and then recovered. But from the beginning of the year to this point, the assets have not grown much. Current investors are prioritizing holding cash over investing in assets. Because they are more worried about the risk of a political recession than inflation. Let’s wait and see how the market reacts to this week’s Fed rate hike.

Inflation is also showing signs of slowing down. As the average price of gasoline in the US has begun to fall since mid-June. In addition, Ukraine and Russia have agreed to an agreement to allow the resumption of exports of vital grain from Ukraine’s Black Sea ports, a breakthrough. major diplomatic disruption to defuse the global food crisis caused by war. This will also contribute to reducing inflation. Despite being a small country in terms of area, Ukraine is also a country that accounts for nearly 9% of the world’s grain exports.

The website Truflation statistics and gives an inflation index that is said to be closer to reality than the government’s numbers also show that the inflation index is decreasing.

The US election has an important impact on crypto

The Texas GOP calls for the state’s Bill of Rights to include a provision that allows citizens to own, hold, and use any medium of exchange they choose, including digital currency. US Senator Ted Cruz (R-Texas) also said that he would like to see Texas become the space hub for bitcoin and cryptocurrencies, he told 700 attendees at the Texas Blockchain Summit on last October in Austin.

Currently, the majority of pro-crypto congressmen such as Cynthia Lummis, Madison Cawthorn, Michael Waltz, etc. are Republicans. So, the outcome of the upcoming election could have a big impact on the crypto market. There are a total of 30 seats in the Senate and 435 seats in the House to be re-elected. If Republicans win a majority of seats, they will have the upper hand with the proposed crypto laws and have a positive impact on this market.

Other information:

• The Boston Consulting Group company predicts that crypto will reach 1 billion users by 2030. They make this prediction based on previous Internet adoption curve and similar crypto user growth rate. North America topped the list with an average investment of $18,000. Africa has an average investment amount of at least 190 USD. Currently, only 0.3% of personal wealth is invested in crypto, compared to 25% in stocks.

  Read moreThe AMD giant will not prevent Ethereum mining on its GPU

• Read moreManchester City partnered with Socios to issue Fan Token for fans

  In a separate complaint, the SEC said that nine of the 25 tokens were allegedly securities. This shows that the SEC contradicts their previous information that most cryptocurrencies except BTC and ETH are securities. It is also good news for crypto.

Read moreBitcoin auction in France: Someone bid $ 290,000 / BTC

• Alameda – Bankman-Fried’s FTX, offers to purchase all Voyager crypto assets and crypto loans (except loans to Three Arrows Capital) with cash at market value. Alameda will also write off Voyager’s $75 million debt.

  Read moreTechnology company Meitu continues to buy an additional $ 49 million in Bitcoin and ETH

• Read moreMorgan Stanley provided clients with Bitcoin investment rights - BTC immediately exploded

  Cardano’s IOG downplays Vasil’s hard fork progress. Anthony Scaramucci admits his Bitcoin mistake. Cardano hits a new milestone: 1,760 days of inactivity. XRP remains ahead of other altcoins, hitting key milestones this week.

Read moreBank of Japan prepares to test CBDC

• According to local media reports, the home of Daniel Shin, co-founder of Terraform Lab, in Seoul, was raided by South Korean prosecutors on Wednesday. The report said it was part of a broader investigation into allegations of fraud that caused the demise of the algorithmic stablecoin terraUSD (UST).

  Read moreAnother NFT work with a 30,000% return