JUST IN: 🇺🇸 Kamala Harris’ campaign uses fake news headlines and descriptions on Google ads to make it look like corporate media publishers support her - Axios
Monetary policy refers to the actions taken by a nation's central bank to regulate the money supply and the cost of borrowing in the economy. Monetary policies are used to achieve specific economic goals, such as controlling inflation, managing employment levels, or encouraging economic growth.
To implement monetary policy, central banks can adjust interest rates, conduct open market operations (OMOs), and alter reserve requirements for commercial banks. By influencing the supply and cost of borrowing money, they can either increase economic activity or cool down an overheating economy.
How Does Monetary Policy Work?
Monetary policies can be either expansionary or contractionary.
Expansionary monetary policy
Expansionary monetary policies typically involve lowering interest rates while increasing the money supply to stimulate economic growth. They are often implemented during recessions or periods of low economic activity. The goal is to make borrowing cheaper, encouraging consumers to spend and businesses to invest, thereby boosting overall economic activity.
Imagine that the central bank of Country X wants to stimulate the economy by lowering interest rates. Jane and John, residents of Country X, notice that borrowing costs have decreased. Jane decides to take out a loan to start a new business, while John takes advantage of lower interest rates to buy a new home. As such, demand for goods and services increases, leading to job creation and further economic activity.
Example: 2008 financial crisis
During the 2008 financial crisis, the U.S. government implemented an expansionary monetary policy to revive the economy. They lowered interest rates and introduced quantitative easing (QE), i.e., buying government and mortgage-backed securities. This increased the money supply and made borrowing cheaper. Consequently, consumers spent more, businesses invested more, and the economy began to recover.
Contractionary monetary policy
Contractionary monetary policy involves raising interest rates and decreasing the money supply to slow economic growth and combat inflation. By making borrowing more expensive, the central bank aims to reduce spending and investment, decreasing overall demand and cooling down the economy.
Imagine that the central bank of Country Y wants to control rising inflation by increasing interest rates. Residents Sarah and Mike find that the cost of borrowing has gone up. Sarah decides to delay her plans to expand her business, and Mike postpones buying a new car. Consequently, consumer demand falls, and businesses see a decline in sales, which helps lower inflation and stabilize prices.
Example: early 1980s
In the early 1980s, the Federal Reserve used a contractionary monetary policy to combat high inflation in the United States. The Fed raised interest rates, making borrowing more expensive. This successfully brought down inflation but also led to a temporary increase in unemployment. #BinanceLaunchpoolTON
😀Market Consolidation: The market is in a consolidation phase, with prices returning to Friday's closing levels. The price difference between BTC on Coinbase and Binance suggests that North American investors remain optimistic. Therefore, I expect growth to resume closer to 16:30 on Monday.
😀On Friday, ETFs sold:
😀BTC: -$89.7 million 😀ETH: -$15.8 million 😀Profit-taking at the end of the week was not surprising.
Saturday's expectations of growth in altcoins were largely unmet. Meme coins are currently showing the weakest performance, with major meme coins dropping by more than 5% on average today.
The Solana ecosystem is notably weaker than the market today, possibly due to a significant reduction in Ethereum gas fees, which many noted over the weekend. Transfers on the Ethereum network have already dropped to below $1.
😀Traditional Finance (TradFi): A slight concern arose from Fed member Bowman, who mentioned that inflation has not yet reached the 2% target and that patience and caution are needed. This suggests that not all Fed members are in favor of significant rate cuts in September.
😀News:
Celsius is suing Tether for $2.4 billion over the fraudulent transfer of more than 39,000 BTC. The irony of Celsius suing someone for fraud is not lost, and it’s doubtful that this headline will have much of a follow-up.
😀 Base Scenario: I’m cautiously watching the MA 99 on the hourly BTC chart. Often, breaking this level leads to deeper declines, possibly to $57,600.
However, the base scenario is that the price will sharply drop to the $59,000 - $59,300 range, after which the growth will resume. Positive momentum in altcoins is also expected to follow.
😀 Today’s Long Positions: STX and ENS remain stable, with minor declines. They are expected to perform well in the next growth wave, possibly as soon as Monday.
SOL had a disappointing day, but there are no fundamental reasons for this decline. TIA experienced a significant drop, prompting me to partially sell the token. #CryptoMarketMoves
We reached $62k this week as expected: we have alot of volume at this area. After such a huge move i would be expecting a pullback to atleast 58700 in short term before any move higher.
Plan is simple: i would say we range for a while here between 58700 - 61700 then a fake a out with volume to around 65k then down all the way to 55k which would be my new swing long area. There is few things to keep in mind that there is still liquidity to be taken at 69k.
I would be more confident longing lower than shorting the pullbacks as its been really strong in the past days but you can give it a try with right risk management. The levels at 65k and 69k are just to show you potential liquidity levels we may hunt in the coming days.
🔴 ↘️ Nasdaq falls into correction as fresh job market data showing signs of trouble. According to July jobs report the US economy added fewer jobs than expected, while the unemployment rate unexpectedly rose to 4.3% - nearly 3-year high. Those additional signs of a slowdown in the labor market are likely to feed recession fears and rate-cut expectations. Traders are now pricing in three rate cuts this year and bets are on a 50 basis-point reduction in September. The 10-year Treasury yield fell to its lowest since December as investors flooded into bonds for safety on the fear the Federal Reserve made a mistake this week by keeping interest rates at current levels.
🔽Chip giant Intel plummeted more than 26% on Friday, finishing one of its worst trading days in 40 years. The massive declines followed a catastrophic Q2 report during which the company announced anticipated third quarter earnings below Wall Street expectations, and that it will be cutting 15% of its workforce and suspending its dividend payments amid a broader restructuring plan.The decline was among the stock's worst performances since at least 1982, according to available data from Bloomberg.
📱 Amazon fell more than 8% Friday after the retail and cloud giant Q3 forecast fell short of expectations on both the top and bottom lines. Even as Amazon brought home earnings per share (EPS) of $1.26, beating estimates of $1.04 and nearly doubling profits from the same period last year, investors focused instead on the report's weaknesses. A bright spot of the report came from its cloud business, Amazon Web Services. AWS raked in $26.3 billion in revenue compared to the $26 billion expected and well above the $22.1 billion during the same time last year.
🇯🇵Japanese indexes lost more 5% on economic concerns. Nikkei and Topix driven down by signs of cooling in the U.S. economy and an interest-rate increase by the Bank of Japan. The fall, which was the largest since the tsunami that triggered the Fukushima nuclear disaster in 2011, wiped away almost $600 billion in market value, according to data compiled by Bloomberg. The yen is rising this week to a four-month high against USD, which in turn threaten to erode the earnings of exporters who drove the nation’s equities higher for much of this year.
🔴Japanese Indexes Plummet More 5% On Economic Concerns
↘️ Nikkei and Topix driven down by signs of cooling in the U.S. economy and an interest-rate increase by the Bank of Japan.
🇯🇵 The fall, which was the largest since the tsunami that triggered the Fukushima nuclear disaster in 2011, wiped away almost $600 billion in market value, according to data compiled by Bloomberg.
🇯🇵 The yen is rising this week to a four-month high against USD on the new outlook for interest rates, which in turn threaten to erode the earnings of exporters who drove the nation’s equities higher for much of this year. Stocks of exporters like Honda Motor Co., Hitachi Ltd. and Mitsubishi Heavy Industries Ltd were brutally hammered on Friday
🇯🇵 A rotation out of large tech shares exacerbated the slump as signs of strain in the US economy led traders to reconsider whether Jerome Powell’s Federal Reserve is wise to hold off cutting interest rates before September. Tech shares were among the biggest decliners on the Nikkei, with Tokyo Electron Ltd. tumbling 12% and Screen Holdings Co. retreating 13%.
✅ Сrypto market seems to be in free fall along with the US stock market, which saw a massive sell-off today. Investors are afraid of geopolitical risks and a possible recession in the U.S., so they are buying bonds and selling stocks 🔽
Daily Digest:
🔸 $2.9 trillion got wiped out from the U.S. stock market this morning
🔸 CEO of American investment management firm VanEck says Bitcoin market capitalization will be half that of gold ($350,000 price per coin) 😳
🔸 MicroStrategy said it acquired an additional 169 BTC in July for $11.4 million
🔸 US Secretary of State has issued a statement, declaring Venezuela's opposition candidate González as the true winner 🤔
🔸 Do Kwon’s extradition to the US has been rejected by Montenegro’s Appellate Court
🔸 Fantom blockchain has rebranded to Sonic Labs
🔸 Morgan Stanley bank told its wealth advisors they can pitch spot Bitcoin ETFs
Cold storage is when you keep your digital assets offline to make sure they are safe from hackers. In fact, what you keep offline are the private keys, not the assets. Private keys are cryptographic keys that grant access to your cryptocurrency holdings. Unlike hot wallets, which are connected to the internet and susceptible to online vulnerabilities, cold storage methods keep your private keys offline at all times.
How Does Cold Storage Work?
There are different ways to isolate your private keys from online exposure, including hardware wallets, paper wallets, and air-gapped systems.
Hardware wallets
Hardware wallets are physical devices designed to securely store private keys. These devices often resemble USB drives and offer an additional layer of protection through encryption and PIN authentication. By generating and storing keys offline, hardware wallets ensure that access to funds remains restricted from online threats.
Paper wallets
Paper wallets involve printing or writing down private keys on paper. These physical copies can be stored in a secure location, such as a safe or vault. Paper wallets are considered cold storage since the keys are entirely offline, reducing the risk of cyber attacks.
Paper wallets were popular in the early days of Bitcoin but are now discouraged due to risks. Paper is fragile and can be easily damaged. There are also concerns related to using a potentially infected computer or printer.
Another risk is the misconception that funds can be sent multiple times from the same address. When sending funds from a paper wallet, you must send the entire balance to avoid losses.