Overview
- What’s the Fed’s plan going forward?
- Markets fall despite expected Fed hike.
- Celsius’ improved plan for asset holders.
- EU’s MiCA regulations are near completion.
- Microsoft to help improve Ethereum?
Good morning Banter Fam,
Did you get a chance to watch Jerome Powell’s conference after the rate hike announcement yesterday? If you failed to tune in to this exciting piece of informative political wish-washing, I did you the solid of summarizing his thoughts in the hopes it aids your financial decisions going forward.
When asked about when hikes will stop:
- Powell continued mentioning the Fed’s desire to see inflation nearing 2% before rate cuts are considered.
- The FED would like to see the labor market cooling off.
What asked about a soft landing:
- Powell noted that the chances of a soft landing are diminishing.
- Job openings are too high, and the Fed would like to see them come down significantly.
- The Fed projects a 2023 unemployment rate of 4.4%, which translates to 1.235 million people losing their jobs.
- A failure to restore price stability can lead to more significant pain in the future.
When asked about the length of economic pain:
- Powell mentioned the short term would be painful with slower growth and job losses, but when inflation is low and stable, the markets enter long expansion periods of 8 – 10 years.
Overall, Jerome Powell remained hawkish with little hope of easing in the short term. He seems focused on his path to 2% after mentioning the percentage several times throughout the questioning. In simpler terms, expect more of the same!
Market update 🌍
BTC/USDT 1D
The bears have taken control and pushed BTC below its significant $19.2k support level that, if not reclaimed by bulls soon, could push BTC’s price to new lows. BTC continues its pattern of slumping during September but let’s not forget October and November are typically some of the better months for BTC. BTC completed the daily candle down -2.19% to $18,125.
High-resolution chart
ETH/USD 1D
Ether (ETH) continues to plunge after nearly reaching a local high of $1,800 earlier this month. ETH is currently testing an established $1,200 support level after falling -29% in ten days. ETH completed the daily candle down -5.85% to $1,246.
High-resolution chart
| US markets close | Gain/Loss |
| S&P 500 | -1.71% |
| Nasdaq | -1.06% |
| Dow | -2.41% |
| VIX | +3.06% |
Notable Gainers (24h):
| Protocol (Coin) | Price ($) | Gain (%) |
| Celsius (CEL) | 1.58 | +9 |
| Algorand (ALGO) | 0.35 | +7.5 |
| Chiliz (CHZ) | 0.24 | +6 |
| Uniswap (UNI) | 5.64 | +5 |
| Astar (ASTR) | 0.039 | +10 |
| Pocket Network (POKT) | 0.09 | +13.5 |
| Bitcoin Fear and Greed Index | 22 Extreme Fear |
| “Crypto” Google Trends 90d | 56 |
| “Bitcoin” Google Trends 90d | 38 |
Newswatch 📰
Celsius redemption tokens. A leaked recording of a recent Celsius management meeting revealed the team’s plan to introduce wrapped assets to repay affected platform users. In addition, the tokens would incorporate a “redemption mechanism,” giving token holders the option to wait for a larger payout as revenue improves or to sell at the open market price.
Uniswap’s first wave of grants. The Uniswap Foundation announced the winners of its first round of grants to help protocol and community growth. The update highlighted Uniswap Diamond, a feature that will grant traders many of the same experiences as centralized exchanges (CEXs) while maintaining the benefits of DeFi.
European Union finalizes MiCA regulations. According to CoinDesk’s review of a leaked document, the EU has finalized the full text of the Markets in Crypto Assets legislation (MiCA). MiCA would force crypto projects to post whitepapers with roadmaps, for them to register with authorities, and require stablecoin issuers to hold capital. However, it’s unclear how NFTs would be affected by the regulations.
Microsoft gives Ethereum input. Microsoft researchers published a study titled “Forerunner: Constraint-based Speculative Transaction Execution for Ethereum”, that offers an upgraded plan for Ethereum’s transaction model. According to the document, the new model would improve the network’s transaction speed by 6x. The study was presented during Mainnet 2022.
News Tidbits:
- European renewable energy-focused company CTCAP Group signs a purchase agreement with BITMAIN for a new hydro cooling mining facility in Iceland.
- CoinFLEX announces a restructuring proposal.
- Ethereum EIP-4895 has been updated in preparation for the Shanghai upgrade.
- Wintermute offers hackers a $16M bounty for stolen assets.
NFT & metaverse update 🐵
- MoonPay and Universal Studios team up to initiate an in-person scavenger hunt within Universal Studios Theme Parks. MoonPay will help create seven million NFTs for park guests to discover, through October the 31st.
- Funko and Warner Bros. join forces for a DC Comics NFT release.
Banter’s take
September is turning out to be a tough month for equity and crypto markets alike. The fears of persistent inflation continue to mount, and Russia looks to intensify its effort in the Ukraine, behind Putin’s new mobilization order. Moreover, Europe faces an energy crisis with winter around the corner. With so much going on around the globe, the short-term outlook doesn’t look good for risk-on assets.
It’s an excellent time to increase knowledge, discover the projects set up for the future and create a plan for when the bear cycle begins to turn. But for now, it may be time to hunker down.
Gabri
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Disclaimer
Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
