EddieJayonCrypto
27 Jul 23
What we expected the FOMC would do, happened. The rates were increased by 25 basis points. I also got the feeling that Powell's hawkish commentary yesterday was his version of dovishness. Here is what is on my mind today.1. So we got what we expected: up an additional 25 basis points. We all know Ch...
What we expected the FOMC would do, happened. The rates were increased by 25 basis points. I also got the feeling that Powell's hawkish commentary yesterday was his version of dovishness. Here is what is on my mind today.1. So we got what we expected: up an additional 25 basis points. We all know Chairman Powell is quite capable of being hawkish. Yesterday was a tad different where he did lean toward another hike coming, but the rest of his comments although hawkish were softer than what they could have been. He was smart enough to leave the door open to making a decision in either direction. 2. The San Francisco Federal Reserve is looking for someone to help them with their CBDC project. So when you hear that the Fed is not going to introduce a CBDC on the heels of the launch of FedNow, you must consider they are simply not ready yet, but are taking the necessary steps. Mind you, Ripple has been making the rounds proving their XRP Ledger is capable of handling the task. Their latest move was to help Palau develop a dollar-backed stablecoin. 3. Congress is set to vote on 5 crypto bills. They cover issues surrounding national security concerns stablecoins, a framework for the SEC to address existing regulatory gaps (this one concerns me), another to address safe harbor for validators, software developers and the like, another for the right of self-custody, and of course one to address illicit behavior. There is a battle brewing over what agency should reign supreme over the space with one side wanting the CFTC and the other seeking more power for the SEC. 4. By this time you may have heard about an analyst report from BlackRock way back in 2021 that said about 84% of your risk portfolio should be Bitcoin. Mind you they have had other analysts say the coin would drop. I think people missed the part about it being about your RISK portfolio. The is the part of your portfolio where you are willing to take more of a risk. Play that out in your head. The price did significantly drop and we are still dealing with it. That said, everything drops at one time or another. The longer view is that the drop would happen but that the following rise is expected achieve higher all-time highs. This would follow the historic trend. BlackRock is also in business with Jio Financial in India to create a new investment platform. 5. Although I am not riding along with the investors of Worldcoin I am paying attention to its journey. I will keep this one short. With only 1% of the coin released the coin is ranked 119th out of 9,984 currently active coins tracked by CoinMarketCap. The coin has had more volume that the latest memecoin, Pepe, too, even though Pepe is currently ranked 74th. 6. Have you been paying attention to Dogecoin? With all of the noise going on over at X, it has risen quite a bit. So much so that it has moved into the #7 slot, surpassing Cardano. 7. Binance terminates their German crypto license application as they continue to face strong European headwinds. I have been saying for a long time that Binance needs to take some of the money they have made and shore up their compliance game. That is their clear vulnerability and poses an existential threat to their continued success.