Global investment bank UBS has recently predicted that the price of Gold has “further to run” and could even hit $2,700 pr ounce by Jun of next year as the U.S. dollar weakens amid rate cuts from the Federal Reserve.

In a recently published report written by the UBS editorial team, the investmenr bank noted that the DXY index, which measures the performance of the U.S. dollar against six major other currencies, has lost 5% of its value since June while the precious metal rose to a new all-time high near $2,600 an ounce.

The precious metal, UBS wrote, has been benefitting from potentially lower interest rates, as they “lower the opportunity cost of holding the non-yielding asset.” Its rise comes amid a higher-than-expected reading for the US producer price index (PPI) and monthly core consumer inflation.

Markets, the firm wrote, appear to be focusing on media reports suggesting the Federal Reserve could cut interest rates by 50 basis points instead of 25 this week. They added:

In our view, overall inflation data have been good enough to allow the Fed to start cutting rates this week amid a softening labor market, but do not give officials a reason to cut aggressively. Data for retail sales and industrial production due Tuesday could potentially influence the Fed’s decision, with weak results likely to trigger a 50-basis-point cut.

The bank’s base case scenario isn’t of a recession, but rather of a soft landing that could lead to 100 basis points of interest rate reductions this year, and an additional 100 basis points next year.

If that happens, the precious metal could keep on seeing its value rise, while markets move to a lower-rate environment. UBS also noted that the growing US federal deciti is “likely to be a headwind” for the U.S. dollar over the long-term.

Gold, on the other hand, has been surging and seeng growing accumulation, with total gold exchange-traded fund holdings rebounding to nearly 3,182 metric tons this year. UBS’ team wrote:

With upcoming Fed cuts reducing the opportunity cost of holding the non-interest-bearing asset, we expect gold prices to hit USD 2,700/oz by June next year. We also believe gold’s hedging properties make it an attractive proposition from a portfolio perspective amid macro and geopolitical uncertainties.

As CryptoGlobe reported Societe Generale has shifted 100% of its commodity allocation to gold, driven by geopolitical risks and a weakening broader commodity market.

The French bank increased its gold holdings to 7% of its total asset allocation, reflecting a 40% quarter-over-quarter rise. This pivot toward gold signals growing confidence in the yellow metal as a safe-haven asset amid ongoing uncertainties in global markets.

Featured Image via Pixabay

A cryptocurrency trader has lost more than $1.1 million in less than two months after making a large bet on popular decentralized finance platform MakerDAO (MKR), the entity behind the cryptocurrency-backed stablecoin DAI, in late July.

According to data from blockchain analysis service Lookonchain, the trader spent $2.9 million to buy 1,100 MKr tokens in late July, and held them until this month. The trader, who bought the tokens at $2,643 at the time, has now deposited them onto leading cryptocurrency exchange Binance at $1,613.

The move to Binance likely means the trader is now set to sell their holdings to realize a $1.13 million loss on their investment in less than 50 days.

Lost $1.13M in less than 50 days!This trader bought 1,100 $MKR($2.91M) at $2,643 on July 27 and deposited it to #Biance at $1,613 5 hours ago to sell, resulting in a $1.13M loss (-40%)!https://t.co/L5iM7RjHRx pic.twitter.com/10OVuGc2ZQ

— Lookonchain (@lookonchain) September 14, 2024

Last month, the world’s largest cryptoasset manager, Grayscale Investments, a subsidiary of Digital Currency Group, unveiled the Grayscale MakerDAO Trust, which is designed to provide investors with direct exposure to MKR.

Later, MakerDAO co-founder Rune Christensen announced that the project’s next phase was a rebrand to Sky. This transition is apparently the result of over two years of development aimed at introducing new functionalities and improving user interaction within the decentralized finance (DeFi) ecosystem.

At the heart of Sky are two newly introduced tokens, USDS and SKY. USDS is a stablecoin that users can convert from their existing DAI or USDC holdings on a one-to-one basis. This token will play a key role in the Sky ecosystem, facilitating various interactions within the platform.

Meanwhile, SKY serves as the new governance token, replacing MKR. Holders of MKR will have the option to upgrade their tokens to SKY, thereby participating in the governance of the Sky ecosystem. The governance model remains decentralized, allowing users to influence decisions that shape the future of the protocol.

Featured image via Unsplash.

A cryptocurrency trader has managed to turn around $16,600 into over $1.6 million using a meme-inspired cryptocurrency that has recently been listed on leading cryptocurrency exchange Binance, with the listing helping their holdings grow.

According to data shared by blockchain analytics firm Arkham Intelligence, the cryptocurrency trader spent around 5 Ether (ETH) to buy the meme-inspired cryptocurrency Neiro within its first two days.

The trader then held onto their funds for eight weeks, before the cryptocurrency was listed on Binance. The listing helped their holdings surge to over seven figures.

This trader turned $16.5K into $1.8 MILLION on NeiroTrader 0x6ac bought around 5 ETH of Neiro within the first 2 days of its existence.He held for 8 weeks before Binance announced its listing today – sending his holdings over the 7-figure mark.That’s over 100x. pic.twitter.com/5SEF6HDmpK

— Arkham (@ArkhamIntel) September 16, 2024

The meme-inspired cryptocurrency’s price surged after the token, which deems itself the “little sister of Doge” was listed on leading cryptocurrency exchange Binance. The listing boosted the token’s liquidity and accessibility, likely leading to the price rise.

Some on the microblogging platform X (formerly known as Twitter) have taken to the platform to point out that the trader who saw their holdings surge was likely an insider. One user, Crypto Apprenti, said that “someone” knew about the listings one day in advance.

币安老鼠仓真6。@binance so corruption now, someone know they gonna list 15m MC token one day before. @SECGov @GaryGensler pic.twitter.com/IrPcGdhF3O

— Dr.Hash“Wesley” (@CryptoApprenti1) September 16, 2024

It’s not uncommon for traders to see wild swings when dealing with volatile digital assets. As covered, a cryptocurrency trader has managed to, through the purchase of a meme-inspired cryptocurrency that was launched after a viral trend on TikTok, turn around $80,000 into over $1.2 million, before losing nearly all of his gains.

That trader invested  $80,000 into the meme-inspired cryptocurrency AURA three weeks after it was launched, using a different account. The trader’s holding quickly surged to surpass $1.22 million, as AURA’s market capitalization surged to $75 million. However, the cryptocurrency market then started correcting, and the value of their holdings plunged back to around $91,000.

Various traders have managed to make millions off of memecoin investments this year, with one trader, identified on-chain by the alias “sundayfunday.sol,” turning a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.

There have also been significant losses, with a Solana trader losing $37,000 while speculating on a memecoin over their emotional trading pattern. It’s worth noting memecoin are extremely speculative and volatile, and while stories of successful trades often surface, those of unsuccessful trades are often buried.

Featured image via Unsplash.

In a recent interview with Matt Miller on Bloomberg TV, Frank Speiser, CEO of Metafide, shared his insights into former President Donald Trump’s surprising entry into the cryptocurrency space, the evolution of the crypto industry, and Bitcoin’s role as a long-term asset.

Speiser began by discussing Trump’s recently announced DeFi project — World Liberty Financial (WLFI) — speculating that it involves a flash loan protocol designed to settle transactions within a blockchain block. According to Speiser, the project is likely focused on the adoption of stable tokens to facilitate transaction settlements, potentially across different asset classes and exchanges.

However, Speiser believes that Trump’s motivation to dive into crypto goes beyond technology. He suggested that Trump’s personal experiences with censorship and financial control may have driven his interest in crypto. As Speiser explained, Trump likely sees cryptocurrency as a way to resist centralized financial systems, stating, “If it can happen to him, it can happen to anybody.” Speiser emphasized that Trump now recognizes the power of crypto to preserve economic freedom and resist censorship, which aligns with the libertarian ethos of the cryptocurrency movement.

Speiser identified a broader shift happening in the crypto industry, which he described as the “dawn of a new era.” According to Speiser, the industry is moving beyond its adolescent phase of meme tokens and speculative investments. The focus is now shifting toward building serious financial infrastructure and real-world asset tokenization.

While Trump’s crypto plans generated buzz, Speiser noted that the real conversation among executives at the Token 2049 conference in Singapore was about financial innovation. He highlighted that the industry is now maturing, with more emphasis being placed on real-world applications of blockchain and cryptocurrency, such as decentralized finance (DeFi) solutions and stable token adoption.

Though Trump’s crypto project garnered attention, Speiser didn’t draw a direct link between it and Bitcoin. Instead, he spoke more broadly about Bitcoin’s role in the financial system. He pointed out that Bitcoin is no longer seen as a transactional currency, as it was in its early days. Instead, Bitcoin has evolved into an asset to hold due to its fixed supply and the potential for its value to increase over time.

Speiser explained that Bitcoin is now viewed as a store of value in an increasingly inflationary world. He remarked, “When Bitcoin is doing what it’s supposed to do, the price just continues to go up,” highlighting how Bitcoin’s fixed supply contrasts with the inflating supply of fiat currencies like the U.S. dollar.

Speiser also shared insights into his company, Metafide, which focuses on integrating human sentiment into financial models. Metafide allows people involved in financial systems to provide their opinions, which are then incorporated into models that predict asset prices, including cryptocurrencies. By blending human intuition with advanced AI-driven models, Metafide aims to create a more comprehensive view of market dynamics.

While Metafide doesn’t directly trade Bitcoin, the company’s models help hedge fund clients make better-informed decisions in the crypto space by considering both data-driven insights and human opinion.

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Hedge fund billionaire John Paulson, renowned for his successful bet against the housing market during the financial crisis, recently warned that Vice President Kamala Harris’ proposed tax plans could lead to a financial market collapse and a recession, according to a report by Yun LI for CNBC. Paulson, a vocal supporter of former President Donald Trump, shared his concerns during an interview on CNBC’s Money Movers.

As reported by CNBC, Paulson criticized Harris’ plan to increase corporate taxes from 21% to 28% and long-term capital gains taxes from 20% to 39%, as well as the introduction of a 25% tax on unrealized capital gains. He predicted that implementing these policies would cause a market crash, with “no question about it.” Harris has proposed a 28% tax on capital gains for households earning over $1 million annually, which is lower than the 39.6% rate proposed by President Joe Biden for the 2025 fiscal year.

Harris has previously endorsed Biden’s idea of a 25% tax on unrealized gains for households worth $100 million or more, also known as the billionaire minimum tax, CNBC noted. However, investor Mark Cuban and others close to Harris’ campaign have suggested she has no real interest in taxing unrealized gains, and there are doubts about whether such a plan could pass through Congress.

CNBC mentioned that Paulson, who made a fortune during the financial crisis by betting against mortgage bonds, has also been an adviser to Trump, reportedly discussing the idea of creating a U.S. sovereign wealth fund. Paulson has been a significant donor to Trump’s 2024 campaign.

The investor also expressed concerns that the economy could fall into a recession if the proposed tax on unrealized gains were to be implemented. According to CNBC, Paulson warned that such a tax could trigger massive sell-offs in assets like homes, stocks, companies, and art, potentially leading to an economic downturn.

Some Wall Street economists, cited by CNBC, agree that raising corporate tax rates from the 21% level set during Trump’s presidency could negatively impact S&P 500 earnings and share prices. However, they don’t foresee a downturn of the magnitude Paulson described.

Paulson also downplayed concerns over Trump’s proposed tariffs potentially reigniting inflation, stating that tariffs could be targeted effectively. He argued that lower taxes would boost economic growth, ultimately increasing revenues and helping close the budget deficit, CNBC added.

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In a bold move, Societe Generale has shifted 100% of its commodity allocation to gold, driven by geopolitical risks and a weakening broader commodity market, according to a report by Ernest Hoffman for Kitco News.

Société Générale (SocGen) is one of France’s largest and oldest financial institutions, founded in 1864. It is a multinational investment bank and financial services company with a global presence, offering a wide range of services, including retail banking, corporate and investment banking, asset management, and private banking.

SocGen serves millions of clients worldwide and is known for its strong presence in Europe, though it operates in many other regions. The bank has a reputation for innovation, especially in financial markets, derivatives trading, and structured finance. It supports large corporations, governments, and institutional investors with services like mergers and acquisitions (M&A), financing, and risk management.

The French bank increased its gold holdings to 7% of its total asset allocation, reflecting a 40% quarter-over-quarter rise. This pivot toward gold signals growing confidence in the yellow metal as a safe-haven asset amid ongoing uncertainties in global markets.

According to the Kitco report, Societe Generale’s analysts identified five key factors driving the gold market: geopolitics, the dollar and interest rates, central bank purchases, investor flows, and market fundamentals. While these drivers are overwhelmingly positive for gold, analysts caution that there is a lack of any significant new catalysts beyond those already priced in. Nevertheless, the bank remains optimistic, forecasting gold prices to rise to $2,800 per ounce in 2025.

Kitco mentioned that this shift in strategy is part of Societe Generale’s broader approach to asset management. In its Q4 2024 outlook, the bank highlighted the strong performance of its multi-asset portfolio, which focuses on U.S. equities, corporate credit, and gold. This portfolio has shown resilience, delivering solid returns amid increased market volatility in 2024. Societe Generale credits gold’s safe-haven status as one of the key factors behind this success, particularly as global tensions between the U.S., China, and the Middle East continue to rise.

The broader commodities sector, however, has not fared as well. Per Kitco’s report, Societe Generale has taken a bearish stance on oil and base metals, lowering price forecasts due to weakening demand.

According to Kitco, the SocGen analysts also pointed out that concerns over the U.S.-centric global financial system and the threat of sanctions have further boosted demand for gold. This has led to increased gold purchases by central banks in the Global South, supporting long-term demand for the asset.

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Russia’s central bank, the Bank of Russia (BoR), has announced plans to launch digital ruble services for public use by 1 July 2025, as reported by Jordan Finneseth for Kitco News on September 16. By that date, major banks will be required to offer digital ruble accounts and facilitate transactions, including transfers and deposits. The BoR emphasized the necessity of making the digital ruble as accessible as traditional forms of currency, ensuring its use by both individuals and businesses.

According to the press release cited by Kitco, the Bank of Russia is coordinating with the Ministry of Finance to propose amendments to existing legislation to aid in the rollout of the digital ruble. Smaller banks with “universal licenses” have been granted an extended deadline, with a requirement to begin offering digital ruble services by July 2026. Other financial institutions will need to follow suit by July 2027.

For businesses, the deadline to start accepting digital ruble payments depends on their annual earnings. As Kitco explains, companies earning over ₽30 million annually must comply by July 2025, while those earning between ₽20 million and ₽30 million have until July 2026. All remaining companies are required to support digital ruble transactions by July 2027.

Kitco also mentioned that the Bank of Russia indicated that both banks and companies can implement the necessary infrastructure ahead of these deadlines if they choose to. Transactions will be conducted via a universal QR code system, which the BoR claims will help minimize additional costs for both banks and trade service companies.

Per the Kitco report, Russia’s central bank explained that the digital ruble was designed to broaden the options for making payments and transfers. It also stated that all transactions conducted by individuals using the digital ruble would be fee-free, and users could decide which ruble form — digital or physical — best suits their needs.

To prepare for the broader release, the BoR has initiated pilot testing of the digital ruble with 12 banks. Kitco highlighted that as of September 1, the number of pilot participants was expanded to 9,000 individuals and 1,200 trade service companies, significantly up from the previous limit.

Featured Image via Pixabay

Donald Trump took another step into the crypto world during a two-hour event on September 16, when he revealed key details about his DeFi project World Liberty Financial and its upcoming WLFI token.

https://t.co/ws1YSdE7WD

— Farokh (@farokh) September 16, 2024

According to reports by The Block and CNBC, while the token has not been launched, its structure and distribution plans were outlined to the public.

The WLFI token, described as a non-transferable governance token, will give holders a role in shaping decisions on the platform but will not be freely traded. Zak Folkman, co-founder of Dough Finance, confirmed that 63% of the total supply will be available for public purchase, while 17% will go towards user rewards, and the remaining 20% will be reserved for the founding team, including Trump and his family.

Crucially, there will be no pre-sales or early buy-ins, meaning everyone will have equal access to tokens when they become available. However, due to regulatory uncertainty, the initial sale of WLFI will be limited to accredited investors, following SEC Regulation D guidelines, which allow companies to raise capital without needing to register their securities.

During the event, Donald Trump Jr. emphasized the project’s mission to disrupt traditional finance by introducing DeFi (decentralized finance) solutions to the masses. “This is the start of a financial revolution,” Trump Jr. stated, as reported by The Block.

DeFi allows users to earn returns by lending stablecoins such as USDC and USDT through decentralized platforms, potentially offering higher yields than traditional financial products. The Block noted that analysts believe crypto credit markets could be reignited if stablecoin yields exceed 5%, surpassing those offered by U.S. money market funds.

Although no official launch date for the WLFI token was provided, the project has promised to share more updates via its official channels while warning users to be cautious of scams circulating online.

The price of the flagship cryptocurrency Bitcoin ($BTC) has dropped significantly from a high above the $64,000 mark late last month, to now trade at $57,800 after recovering from a low under the $53,000 mark.

According to a popular cryptocurrency trader that goes by the Titan of Crypto on the microblogging platform X (formerly known as Twitter), the price of Bitcoin has recently retested its 50-week moving average which, over the last few cycles, led to a bounce of “at least 40%.”

The popular analyst added that on average, after retesting the 50-week SMA, the price of Bitcoin bounced 71%, which during the current cycle would mean a price rise to around the $92,000 mark, a new all-time high.

#Bitcoin Rally Imminent? 🚀In previous cycles, when the price retested the 50-week simple moving average 🔴, it bounced at least 40%.On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000. pic.twitter.com/e3ghGxn3NS

— Titan of Crypto (@Washigorira) September 13, 2024

The post comes after popular cryptocurrency trader and market analyst Michaël van de Poppe revealed he believes that the “current valuation of Bitcoin is still super low,” adding he wouldn’t be surprised if the cryptocurrency’s price explodes to $300,000 to $600,000 this cycle.

His comment came in response to a quote from the world’s largest asset manager, BlackRock, which said that Bitcoin could be a “hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.”

The world’s largest asset manager saw its assets under management surpass the $10 trillion mark for the first time in the second quarter of the year, after rising 13% from the same period last year and seeing $82 billion of net inflows.

BlackRock’s dominance extends beyond traditional asset management. The company is also the largest public holder of bitcoin through its iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF), which currently holds more than $20 billion worth of the cryptocurrency.

As CryptoGlobe reported, Bitcoin holders have moved around $750 million worth of the flagship cryptocurrency out of centralized exchanges in a single day this week, leading to largest net Bitcoin outflow since May.

Historically, similar outflows have been followed by price increases as often a lower supply on exchanges can lead to a price rise if demand remains steady or rises.

For instance, a significant withdrawal in late May coincided with a rally that propelled Bitcoin’s price from just below $68,000 to $72,000 within days. Conversely, large inflows have often led to price declines, as evidenced by the crash in late July and early August, according to IntoTheBlock’s data.

Featured image via Unsplash.

A mysterious cryptocurrency whale that has been dormant for over eight years has recently resurfaced after seeing the value of the Ethereum ($ETH) holdings surge more than 44,000% to now stand at $39 million.

According to data from Ethereum blockchain explorer Etherscan, first shared by EmberCN on the microblogging platform X (formerly known as Twitter), the whale bought 16,636 ETH on decentralized exchange ShapeShift at $5.23 per token back in February 2016.

The whale has kept their holdings unmoved for over eight years, and has now recently sold 350 ETH at an average price of $2,340 per token. The whale at the time spent around $87,000 to buy their ETH.

一个在 2016 年 2 月以 $5.23 的单价从 @ShapeShift 接收到 16,636 枚 ETH 的远古鲸鱼，时隔 8 年半后开始出售这些 ETH。他在收到这些 ETH 后一直持有，直到 4 小时前将这 16,636 ETH ($39.62M) 转移到 0xe3e…566 地址，然后以 $2,340 的价格出售了 350 枚 ETH。他当时收到这 16,636 枚 ETH… pic.twitter.com/F0uljalb7l

— 余烬 (@EmberCN) September 16, 2024

Notably, Ethereum’s largest token holders have been steadily accumulating more of the second-largest cryptocurrency by market capitalization, effectively increasing their dominance as they do so.

According to data shared by on-chain analysis firm IntoTheBlock, Ethereum whales’ accumulation has been consistent since 2019 and accelerated in early 2023 after the network’s Shanghai upgrade, which started allowing staked Ether to be withdrawn.

The data shows that these whale addresses now control over 43% of Ethereum’s circulating supply and are approaching the 48% retail investors control.

The whale’s sale notably comes at a time in which Ethereum has been significantly underperforming the flagship cryptocurrency, with the ETH/BTC trading pair seeing a drop of more than 36% over the last 12 months, and more than 22.9% in the last six-month period.

While Bitcoin soared to a new all-time high earlier this year after the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, the impact of the launch of spot Ether ETFs in the country was relatively muted.

Featured image via Unsplash.

El Salvador’s sovereign debt surged on Monday following an announcement by President Nayib Bukele that the 2025 budget would not include any new debt issuance, according to a report by Zijia Song and Vinícius Andrade for Bloomberg. This move signals a shift towards fiscal austerity and could be a pivotal step in securing a long-awaited deal with the International Monetary Fund (IMF). Bloomberg reported that the country’s dollar bonds due in 2035 saw a notable rise of 2.2 cents on the dollar, reaching their highest level since 2021.

Bloomberg highlighted that Bukele’s plan to present the 2025 budget by the end of September comes at a critical time, as El Salvador has struggled to meet its financial obligations. Investor confidence had waned earlier this year due to the lack of progress on securing an IMF deal, an agreement that had been delayed by concerns over the country’s fiscal policies and its adoption of Bitcoin as legal tender. Bloomberg added that the IMF has been cautious, citing these factors as major obstacles in their negotiations.

Carlos de Sousa, a portfolio manager at Vontobel Asset Management, told Bloomberg that while the government’s fiscal position has deteriorated over the past year, the promise of no new debt is seen as a positive step. Sousa referred to the announcement as a vague yet important move towards reducing the fiscal deficit, with Bloomberg describing it as potentially signaling an era of fiscal responsibility for the nation.

In its coverage, Bloomberg noted that Bank of America upgraded El Salvador’s sovereign debt from market weight to overweight following an investor trip to the country. The analysts, including Lucas Martin and Jane Brauer, noted that the government appears to be closer to finalizing a deal with the IMF than ever before. According to Bloomberg, this optimism was shared by other investors, including HSBC’s Nathalie Marshik, who mentioned that even the controversial issue of Bitcoin could be softened to advance the negotiations.

However, Bloomberg cautioned that not all investors are convinced. Arif Joshi, a co-head of emerging market debt at Lazard Asset Management, expressed skepticism to Bloomberg about the timeline for any agreement. He emphasized the importance of seeing concrete progress rather than promises.

Even though the pledge of a balanced budget is promising, Bloomberg quoted Jared Lou, a portfolio manager at William Blair, who said that the biggest hurdle to finalizing the IMF deal remains the issue of Bitcoin as legal tender in El Salvador. Many investors are closely watching how the government will navigate this challenge and trim the fiscal deficit, which stood at 2.5% of the nation’s gross domestic product as of July 2024.

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Donald Trump has become a prominent figure in the cryptocurrency community, leveraging the support of crypto enthusiasts in his bid for votes and campaign contributions. However, according to a recent Bloomberg report, the biggest names in the crypto industry, like Coinbase Co-Founder and CEO Brian Armstrong, have remained notably absent from his list of financial backers. This also includes Super PACs linked to Coinbase. Interestingly, neither Trump nor his political rival, Vice President Kamala Harris, have received financial support from Armstrong or his exchange.

Rather than focusing on presidential candidates, Coinbase has shifted its financial support toward congressional races, according to Bloomberg. This targeted approach is apparently shaking up elections across the U.S. while pushing cryptocurrency to the forefront of political discussions. Their strategy is paying off, as seen in the growing bipartisan backing for Republican-led crypto legislation, which successfully passed the House of Representatives in May 2024. A similar effort is now underway in the Senate, further advancing the industry’s political influence.

Data from OpenSecrets, as cited by Bloomberg, shows that Coinbase has emerged as the largest crypto donor in the U.S., contributing to an industry that has collectively spent nearly $250 million on political campaigns in 2024 alone. Coinbase itself has reportedly donated over $52 million, making it a significant player in the U.S. political landscape. However, critics are alarmed by the industry’s tactics, warning of the dangers of such heavy corporate involvement in elections. A report from Public Citizen has even likened the crypto industry’s spending to a “corporate Death Star,” intimidating individual candidates and reshaping congressional races to suit corporate demands.

On the other hand, supporters argue that companies like Coinbase are championing the interests of millions of Americans who want access to digital assets. They aim to push through legislation that could establish clear regulatory frameworks for crypto businesses and reduce the reliance on what many perceive as regulation by enforcement from the SEC. This legal clarity is crucial for companies like Coinbase, which is currently battling the U.S. SEC in court, a fight that could shave up to 30% off its revenue, according to Oppenheimer analyst Owen Lau.

In addition to campaign donations, crypto PACs like Fairshake, which Coinbase and others back, have influenced primary races, boasting a success rate of 36 wins out of 42 contests where they were involved. Notably, the PAC has claimed credit for unseating progressive Democrats Jamaal Bowman and Cori Bush in recent primaries, as noted by Bloomberg.

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In an interview on Bloomberg Television on September 16, 2024, Joyce Chang, JPMorgan’s Global Research Chair, reiterated her expectation that the Federal Reserve will announce a 50 basis point rate cut at its upcoming meeting on Wednesday. Despite ongoing debates within the market, Chang noted that her team is holding firm on their projection, although she acknowledged that others are considering the possibility of a smaller 25 basis point cut. Chang explained that the focus for many market participants has shifted from the size of the rate cut to the broader outlook on U.S. economic growth.

Chang expressed confidence in the 50 basis point cut, stating that the current market conditions provide the Federal Reserve with the scope to make a larger rate reduction. She pointed to easing inflationary pressures and labor market conditions as key reasons why such a move is warranted. The Federal Reserve’s current monetary policy stance, Chang suggested, remains restrictive, but there is room for a larger cut without pushing inflation back up. She added that the Federal Reserve’s tone is likely to be “relatively dovish” regardless of the size of the rate cut.

When asked whether the Federal Reserve is behind the curve, Chang admitted that the issue is still up for debate. However, she downplayed concerns about the labor market, explaining that consumer demand remains robust, and there has not been a significant wave of job losses. Chang is predicting an additional 50 basis point cut in November, followed by a 25 basis point cut in December, signaling that JPMorgan believes the Fed is engaged in a broader easing cycle.

Looking ahead, Chang highlighted potential concerns around 2025, particularly in light of the U.S. election results. She questioned whether inflation could continue to decrease given the fiscal policies currently under consideration.

According to a report by CNBC, JPMorgan Chase CEO Jamie Dimon has warned that stagflation remains a possibility, even as inflation shows signs of cooling. Last Tuesday, while speaking at the Council of Institutional Investors’ conference in Brooklyn, Dimon stated that the worst outcome for the economy would be stagflation, combining recession and high inflation. Dimon noted that stagflation cannot be ruled out:

“I would say the worst outcome is stagflation — recession, higher inflation… And by the way, I wouldn’t take it off the table.“

CNBC highlighted that Dimon’s comments come at a time when investors are focusing on slowing economic growth. Recent inflation data suggests prices may be moving toward the Federal Reserve’s 2% target, but reports on employment and manufacturing show some weakening. CNBC emphasized that these mixed signals are causing concerns in the markets.

Dimon also expressed concerns about inflationary forces on the horizon. CNBC noted that he cited higher government deficits and increased infrastructure spending as factors likely to add inflationary pressure. According to Dimon, these factors will keep inflationary risks present over the next few years. Dimon also referenced his previous statements from August, when he said the chances of a “soft landing” for the economy were only around 35% to 40%, suggesting that a recession is more likely.

In a recent interview with Jason Calacanis at the All-In Summit 2024 (held 8-10 September in Los Angeles), Peter Thiel discussed a wide range of topics, including the upcoming U.S. elections, the geopolitical tension between China and Taiwan, and the current state of artificial intelligence (AI). Thiel, known for his candid approach, shared why he has chosen not to participate financially in the 2024 election cycle despite his continued support for Donald Trump and J.D. Vance.

Thiel mentioned that he is conflicted about the election, adding that although he supports Trump, he has decided not to donate any money this cycle. He explained that while he predicted Trump would win by a significant margin, there would likely be buyer remorse afterward. According to Thiel, most elections are not as close as the recent 2016 and 2020 elections, and he believes one side will collapse in the next two months. Thiel also expressed skepticism about the integrity of the election process, stating that if the race is close, Trump’s opponents will likely use tactics like ballot harvesting to “fortify” the results in their favor.

When Calacanis asked Thiel about potential changes to the election process, Thiel suggested adopting practices from other Western democracies. He advocated for one-day voting, minimal absentee ballots, stronger voter ID requirements, and making Election Day a national holiday. Thiel argued that U.S. election procedures have degraded over the last few decades and that restoring these practices could improve the process.

On the subject of a potential Trump presidency, Thiel voiced concerns about pressing issues like the U.S. deficit and global conflicts. He remarked that reducing the deficit without tax hikes or a shrinking economy would be an impressive achievement. Thiel also highlighted growing geopolitical risks, particularly around Ukraine and Taiwan, calling the former a precursor to the larger China-Taiwan conflict. He stated that avoiding a war over Taiwan during Trump’s presidency would be better than he expects, indicating that the stakes are high in the region.

When discussing Taiwan, Thiel said that U.S. policy toward the island is deliberately ambiguous, with officials signaling that they are unsure how they would react if China made a move. Thiel added that this uncertainty is likely a wise strategy, as it keeps China guessing. He suggested that the U.S. should not provide China with a clear red line, such as defending the smaller islands off the Chinese coast because doing so would limit flexibility in responding to future developments.

Thiel also touched on the state of AI, comparing it to the internet in 1999. He described the current moment as one of great potential, with significant advancements yet to be realized. However, he warned that the U.S. might be experiencing stagnation in innovation overall, especially in critical sectors like higher education and healthcare. Thiel expressed concern about the dominance of companies like Nvidia in the AI space and suggested that competition could be stifled in the future if their monopoly position grows stronger.

Featured Image via Pixabay

In a video released earlier today, Kevin Paffrath, the founder and host of the YouTube channel “Meet Kevin”, explores the shocking details surrounding the second assassination attempt on former U.S. President Donald Trump. Paffrath’s video paints a chilling picture of the events that took place at Trump International Golf Course in West Palm Beach, Florida, where the alleged shooter, Ryan Wesley Routh, had positioned himself in a highly strategic manner.

Paffrath begins by walking viewers through the precise location where the attempt took place. Using detailed maps and imagery, he shows how Routh found a concealed spot just outside the sixth hole of the Trump International Golf Course. Routh’s position was shielded by Ficus bushes, offering perfect cover while still providing a clear line of sight to Trump from about 300 to 500 yards away. Paffrath emphasizes how easy it was for the suspect to park nearby, grab his gear, and position himself without being detected.

According to Paffrath, the suspect was armed with an AK-47 rifle equipped with a scope, giving him a significant advantage in terms of accuracy and distance. The shooter also set up a GoPro to capture the incident. But the most concerning part, as Paffrath notes, was Routh’s use of ceramic plates, likely made of Kevlar-style body armor. He had placed these plates along the chain-link fence, creating a makeshift barricade that could protect him from any return fire. Paffrath emphasizes how quickly this entire setup could have been deployed and how dangerous it was, given the rifle’s range and the minimal cover available to the Secret Service.

Once the Secret Service identified the threat, they fired four to six shots at the suspect, but all missed. Routh quickly fled the scene, hopping into a black Nissan and driving off. Thanks to a witness who captured a photo of the vehicle, local police initiated a BOLO (Be-On-the-Lookout) alert. Paffrath explains how modern police vehicles are equipped with radar detection systems that can scan license plates automatically, speeding up the search process. These devices allowed police to quickly track the suspect’s car, but Paffrath underscores how alarming it is that Routh was able to escape the scene so easily, even after a direct confrontation with the Secret Service.

One of the most pressing points Paffrath makes throughout the video is the inadequate security around Trump, despite the fact that this was the second assassination attempt on the former president. He questions why the Secret Service wasn’t more vigilant, especially since there had been previous warnings about Trump’s vulnerability at this exact location. Paffrath draws comparisons to an earlier assassination attempt, where Trump was also targeted from around 435 yards away, and highlights that similar security oversights had occurred in both incidents.

He also touches on the FBI’s official statement, which (he says) suggests that Trump, as a former president, doesn’t receive the same top-tier protection as the current sitting president. Paffrath raises the critical question of whether potential future presidents are receiving adequate protection, especially given the high-stakes nature of political violence in the current climate.

In his reelection campaign, Trump has shifted his stance towards cryptocurrencies. Earlier this summer, he addressed the Bitcoin 2024 conference, where he committed to dismissing SEC Chair Gary Gensler if reelected and pledged to halt the U.S. government’s sale of its bitcoin holdings, totaling 213,000 BTC.

At the time of writing, Bitcoin is trading at around $58,672, down 2.5% in the past 24-hour period.

Source: TradingView

 The next Federal Open Market Committee (FOMC) meeting will be held on September 17-18, and on Wednesday afternoon, Federal Reserve Chair Jerome Powell is expected to announce at least a 25 basis points rate cut, which could help to increase the price of risk assets such as US stocks and crypto.

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In a recent interview with Michelle Makori from Kitco News, Lynette Zang, Founder & CEO of Zang Enterprises, issued a stark warning about the global economy, focusing on the U.S. dollar and banking sector. Zang emphasized that the transition to hyperinflation has already begun. She asserted that the U.S. is moving towards a highly inflationary environment, with 2025 expected to bring massive market volatility and a loss of public confidence in the U.S. dollar.

Zang explained that the Federal Reserve’s own charts reveal the diminishing purchasing power of the dollar, indicating a downward trajectory that will likely lead to zero value. According to Zang, the public should expect more borrowing, more money printing, and greater inflation, as the U.S. government has not addressed the underlying issues of the economic system. She believes that political leaders will attempt to hold off any significant crisis until after the 2024 elections, but by 2025, the gloves will come off, and the financial system will face even greater instability.

In Zang’s view, the U.S. banking sector is in critical condition. She described it as “extraordinarily sick,” with every bank “underwater.” Even small increases in interest rates would not be enough to counter the deep issues banks face, she warned. Zang pointed out that the Federal Reserve’s data shows that the dollar’s purchasing power is on a clear path to zero, and this is a signal that hyperinflation, which technically refers to a 50% inflation rate per month, could soon hit. Zang, however, predicted that the actual inflation rate may exceed this technical definition, and the financial consequences could be dire.

Zang also highlighted the consolidation in the U.S. banking sector, noting that numerous mergers and acquisitions (M&A) have already occurred. She pointed out that 54 U.S. bank M&A deals were announced in the first half of 2024, and the pace is expected to surpass the 99 deals in 2023. In addition to mergers, Zang mentioned the alarming rate of bank branch closures, with more than 2,500 closures in 2023 and hundreds more in 2024.

On the topic of currency cycles, Zang explained that, like all things in life, currencies have predictable life cycles. She has studied these cycles since 1987 and noted that the current U.S. dollar is nearing the end of its life cycle. The inversion of the U.S. Treasury yield curve is one of the many indicators she follows, signaling an imminent recession. However, Zang warned that this recession will be far more severe than previous ones, and it will be accompanied by hyperinflation and a total collapse of confidence in the U.S. dollar.

Finally, Zang reiterated her long-standing belief in the importance of gold as a hedge against economic uncertainty. With the dollar’s collapse becoming more imminent, she advised people to prepare by turning to gold, which has historically held its value in times of crisis. She also discussed the role of gold in maintaining economic stability amid the broader shifts in the global monetary system.

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Peter Tuchman is one of the most recognizable stock traders on Wall Street, known for his animated expressions during market swings and his iconic appearance, often drawing comparisons to Albert Einstein due to his distinctive look. Tuchman has been a fixture on the New York Stock Exchange (NYSE) trading floor for nearly four decades, starting his career in the mid-1980s as a teletypist before moving into trading.

In a fascinating and wide-ranging interview on The Ice Coffee Hour podcast, Peter Tuchman, widely known as the “Einstein of Wall Street,” shared his experiences and perspectives on the stock market, artificial intelligence, and the challenges ahead. Tuchman began by reflecting on his storied career, highlighting how his journey in the financial world started in the mid-1980s when the trading floor was a chaotic, adrenaline-filled environment. Tuchman explained that he thrived in this atmosphere, enjoying the frenetic pace and open outcry style of trading.

According to Tuchman, his face became synonymous with the stock market when, in 2006, a photo of him reacting to a market crash went viral. He noted that the image, showing him with his hands in the air as the market tumbled 650 points, was published across various media outlets, symbolizing the volatility of that period. He recounted how that moment propelled him into the spotlight, and he soon became a recognizable face during market panic.

Tuchman contrasted today’s Wall Street with the Wall Street of the 1980s. Back then, he stated, thousands of people worked on the floor of the New York Stock Exchange (NYSE), and the scene was exactly how the movies portray it: filled with yelling, intense emotion, and high-pressure trades. He noted that while the number of people on the floor has dramatically decreased, he still thrives on the chaos that remains.

Tuchman went on to explain that, unlike the modern investment banker or venture capitalist, most of the people who worked on the trading floor in his time didn’t have MBAs or formal financial education. He shared stories of how many traders began as clerks or shoe shiners before climbing the ranks. In particular, Tuchman emphasized that Wall Street was, and still is, a place where people with street smarts rather than book smarts could thrive.

Turning his attention to the current stock market and its risks, Tuchman warned that the biggest threat over the next two years might come from a “perfect storm” of factors, including the rise of artificial intelligence (AI), global wars, and bank crises. He explained that these individual issues could converge into a significant market crash if they aren’t managed properly.

Tuchman also discussed the role of market makers in the financial ecosystem. He clarified that market makers provide liquidity by buying and selling stocks, ensuring smooth transactions between buyers and sellers. According to Tuchman, while market makers are employed by private firms, their role is essential to the functioning of the market because they bridge gaps in supply and demand.

In discussing AI’s impact on the market, Tuchman expressed concerns about how AI trading algorithms could disrupt the market’s traditional dynamics. He explained that AI systems have the potential to magnify volatility since they can execute trades at speeds far faster than human traders. Tuchman warned that while AI could bring efficiency, it could also lead to dangerous consequences, especially if used irresponsibly in highly leveraged trades.

When the conversation shifted to GameStop and meme stocks, Tuchman shared his perspective on how retail traders, fueled by social media platforms like Reddit’s WallStreetBets, have started to influence the market in unprecedented ways. He highlighted that while the phenomenon was initially exciting, it has introduced unpredictable swings in stock prices, which could pose a risk to market stability in the long run. Tuchman concluded that the rise of retail trading, coupled with social media, has altered the stock market in ways that even seasoned traders didn’t foresee.

Looking ahead, Tuchman speculated on the future of the U.S. dollar and its status as the global reserve currency. He mentioned that while the dollar remains dominant, growing geopolitical tensions and shifting global economic power could eventually challenge its supremacy. However, he added, it’s difficult to predict exactly when or how this shift might happen.

Tuchman wrapped up the conversation by reflecting on how Wall Street has evolved since he started. He remarked that although the trading floor isn’t as crowded and chaotic as it once was, the core of Wall Street—its fast-paced, unpredictable nature—remains unchanged. Tuchman’s final thoughts were a blend of nostalgia for the old days and a cautious optimism for the future, recognizing that while Wall Street has transformed, the essence of trading remains the same.

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Coinbase recently introduced cbBTC, a wrapped version of Bitcoin designed to integrate with decentralized finance (DeFi) applications on Ethereum and Base networks. This new product aims to expand Bitcoin’s utility beyond simple holding or trading, allowing users to participate in various DeFi activities without converting their Bitcoin to other cryptocurrencies.

cbBTC is backed 1:1 by Bitcoin held in Coinbase’s custody, enabling seamless transfers between Bitcoin and Ethereum or Base networks. Users can now engage with popular DeFi platforms like Uniswap, Aave, Compound, and Curve using their Bitcoin holdings. The launch of cbBTC marks a significant step towards creating a more interconnected financial ecosystem and potentially accelerating Bitcoin adoption across DeFi platforms.

However, the introduction of cbBTC has not been without controversy. TRON founder Justin Sun voiced concerns about the product on social media platform X. Sun criticized cbBTC for lacking proof of reserve and audits, suggesting that Coinbase could freeze and blacklist addresses transacting with cbBTC. He argued that this level of control contradicts the decentralized nature of Bitcoin and poses security risks to DeFi protocols.

Sun’s comments sparked a debate about the role of centralized entities in the cryptocurrency ecosystem. He referred to cbBTC as “central bank btc,” implying that it goes against the original vision of Bitcoin’s creator, Satoshi Nakamoto.

cbbtc=central bank btc. There is no more ridiculous combination in the world than putting central banks and Bitcoin together. I imagine this is a day Satoshi Nakamoto could never have envisioned when creating Bitcoin. https://t.co/bi7EkKznpn

— H.E. Justin Sun🌞(hiring) (@justinsuntron) September 12, 2024

In response to these criticisms and concerns about Coinbase’s custody services for 8 of the 11 US-listed spot Bitcoin ETF products, Coinbase CEO Brian Armstrong addressed the issues on X. Armstrong clarified that all ETF-related transactions are ultimately settled on-chain, typically within one business day. He emphasized that Coinbase undergoes annual audits by Deloitte and, as a public company, maintains high standards of transparency.

Regarding cbBTC specifically, Armstrong acknowledged that users are indeed trusting a centralized custodian to store the underlying Bitcoin. He stated that Coinbase has never claimed otherwise, suggesting that this model is necessary to facilitate institutional investment in Bitcoin.

Baldilocks here.Not sure what this is all about TBH. All ETF mints and burns we process are ultimately settled onchain. Institutional clients have trade financing and OTC options before trades are settled onchain. This is the norm for all our institutional clients. All funds…

— Brian Armstrong (@brian_armstrong) September 14, 2024

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The cryptocurrency market, valued at roughly $2 trillion, has birthed a niche yet crucial service sector: crypto custody. Bloomberg reports this market, currently worth about $300 million, is growing at an estimated 30% annually, catching the attention of traditional financial institutions.

Safeguarding digital assets comes at a premium. Hadley Stern, chief commercial officer for Solana custody tool Marinade, told Bloomberg that crypto custody can cost up to ten times more than protecting traditional assets like stocks and bonds. This price tag reflects the unique challenges of securing digital assets in a space notorious for attracting hackers and fraudsters.

Despite the high costs, major players like BNY Mellon, State Street, and Citigroup have shown interest in entering the crypto custody arena. However, their full-scale entry faces a significant hurdle: regulatory uncertainty.

The U.S. Securities and Exchange Commission’s SAB 121 rule makes it impractical for highly regulated financial firms to provide crypto custody services. Some banks have received exemptions, but many are in a holding pattern, awaiting potential regulatory changes.

The upcoming U.S. presidential election could be a turning point. Bloomberg notes that some overseas providers, like London-based Copper, are considering a renewed focus on the U.S. market depending on the election outcome.

Currently, crypto-native firms like Coinbase and BitGo dominate the market. These companies have built their services from the ground up to address the specific needs of digital asset storage and security.

Wall Street isn’t sitting idle, though. JPMorgan Chase has launched Onyx, a project facilitating blockchain payments between its clients. State Street has partnered with provider Taurus for tokenization and custody of digital asset services, positioning itself for future opportunities.

The crypto custody landscape has seen its share of controversy. Bloomberg mentions recent settlements by Robinhood Markets and Galois Capital with U.S. regulators over custody-related failings, highlighting the importance of qualified custody for institutional investors.

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In a recent interview with Kitco News, Peter Schiff, the chairman of SchiffGold and founder of Euro Pacific Asset Management, made bold predictions about the future of the U.S. economy. Schiff argued that the Federal Reserve’s upcoming actions will lead to severe consequences for the U.S. dollar and global financial markets. He suggested that the Federal Reserve’s decision to cut interest rates would be a catastrophic error. According to Schiff, this move will allow inflation to run unchecked and expose the Fed’s inability to control the situation.

Schiff contends that once the Fed cuts rates, inflation will spiral out of control, damaging its credibility even further. He believes that this will result in the ultimate collapse of the U.S. dollar. Schiff went on to claim that the days of the dollar being the world’s reserve currency are coming to an end. He emphasized that the de-dollarization process is already underway but will accelerate rapidly in the near future. In his view, this shift will cause significant financial disruptions, particularly for the U.S. economy.

Moreover, Schiff predicted that gold would emerge as the ultimate safe haven during this economic turmoil. He confidently stated that gold prices could soar to $10,000 an ounce in the coming years. Schiff explained that as central banks move away from the U.S. dollar, gold will reclaim its role as the primary global reserve asset. In Schiff’s opinion, gold has always been the ultimate store of value, and its resurgence will reflect the growing instability of fiat currencies.

Turning to the labor market, Schiff highlighted that recent data revisions paint a much bleaker picture of the U.S. economy than previously reported. Schiff referenced the Bureau of Labor Statistics’ downward revisions to payroll data, arguing that the number of jobs created over the past year has been exaggerated. Schiff believes that many new jobs are part-time positions taken by workers struggling to cope with rising inflation. He further claimed that the labor market is artificially propped up by low-quality jobs, which are a direct result of inflation eroding real wages.

Additionally, Schiff criticized the U.S. government’s handling of economic data, accusing it of masking the real state of the economy. He stated that labor market and inflation data are often revised downward after initial releases, indicating that the numbers are unreliable. According to Schiff, this trend of revising data shows that the economy is not as strong as the government claims. He argued that these revisions reveal a much weaker labor market and higher inflation rates than what is publicly presented.

Schiff also expressed concern about the U.S.’s growing trade and budget deficits. He explained that the U.S. is running record trade deficits, which he believes indicates a weak economy. Schiff noted that a strong economy produces more goods domestically, reducing the need for imports. However, he pointed out that the U.S. economy increasingly relies on imports, further widening the trade deficit. In Schiff’s view, this trend will continue, exacerbating the country’s financial problems.

When asked about the Federal Reserve’s future actions, Schiff warned that the Fed’s reliance on flawed data could lead to more poor decisions. He stated that the Fed often uses inaccurate data to justify its policies, resulting in ineffective monetary decisions. Schiff argued that the Fed’s reliance on government-reported inflation data, which he considers unreliable, has blinded policymakers to the true extent of the economic crisis.

In addition, Schiff addressed the possibility that the U.S. government may be actively suppressing gold prices to mask the weakness of the dollar. While Schiff acknowledged the theory that governments might be manipulating the price of gold, he noted that the gold price has risen substantially over the last two decades despite any potential suppression efforts. Schiff asserted that gold’s long-term upward trend is a signal that the global economy is losing faith in fiat currencies.

Finally, Schiff concluded that we are heading towards an economic environment where quantitative easing (QE) will return and interest rates will be cut further. He predicted that this would fuel inflation, driving up long-term interest rates and making it difficult for the Fed to manage the economy. According to Schiff, the Fed will be forced to intervene in the markets by purchasing more bonds, a move he believes will further destabilize the dollar.