The FOMC has followed through with its expected plan and increased rates by 25 basis points to 5.00-5.25%. The decision was unanimous. The Fed has also hinted at a possible pause in rate hikes by eliminating the language that suggested more policy firming may be necessary to achieve a sufficiently restrictive stance.
The Fed has stated that it will take into account policy lags, tightening to date, and other developments when determining whether additional policy firming is required.
SVB Financial, a Californnia-based lender to the venture capital industry, has been hit extremely hard, and the losses are now sparking speculation that this will affect other banks and affect the bond portfolios of US banks.
SVB Financial
So the recent news surrounding overnight losses incurred by Californian bank SVB Financial has raised serious issues regarding unrealized losses on bond portfolios and their impact on bank capitalization levels.
Ethereum ecosystem is on a journey that could redefine staking for its validators due to the Shanghai upgrade.
By March, validators can withdraw ETH that has been locked since December 2020, which could happen partially or wholly. Partial withdrawal will mean validators can only withdraw the accrued rewards, not their initial staked Ethereum. Those who opt for a full withdrawal will completely exit the network.
The upgrade requires validators to update their withdrawal credentials beforehand.
Crypto funding activity in the month of January was expected to be relatively large but instead registered a “big fat zero.”
This reflects a temporary lull in the crypto market, where crypto funding activity for the month of January was significantly lower than had been anticipated.
For perspective, the crypto funding activity for January was estimated to be around $6 billion. All other months were estimated to have lower amounts, with the lowest amount estimated at around $0.5 billion in De
In November 2021, the Bitcoin mining sector saw a surge in activity due to a combination of factors. The value of Bitcoin at that time was at an all-time high of $67,734, while the Hash Spread reached a record high of $550 per Megawatt Hour (MWh). These high prices and mining margins attracted new capital from investors looking to capitalize on the potential profits available in the sector.
Additionally, competition in the sector had been reduced in the period leading up to this boom due to Chi
The Bank Of Japan (BOJ) is the central bank of Japan, and it has recently become known as the biggest money printer due to its large-scale bond-buying program.
This program, known as "Quantitative Monetary Easing" (QQE), has caused the BOJ's balance sheet to expand significantly since it was implemented.
The Bank of Japan announced its decision to adopt a "Yield Curve Control" (YCC) policy on September 20 and 21, 2016.
Yield Curve Control
YCC is a form of quantitative easing (QE) that invol
The options market suggests market players expect some sort of Fed "intervention"
Since stock buybacks are ending & the Fed is approaching its blackout period, which prevents policy adjustments. Investors are jittery about the midterm elections
Retail traders have been buying put options recently, as they expect prices to fall further. One cannot tell from their timing whether these retail traders are ahead of the curve or behind.
Bitcoin and the stock market correlation is still strong.
Goldman Sachs volatility regime model predicts that the current period of high volatility will continue. That means that volatility is likely to remain elevated, and investors should continue to be cautious when positioning themselves in the markets.
Bitcoin appears to be experiencing a strong resurgence, as evidenced by the large "hammer" candle on the chart.
Might indicates that buyers are willing to step in & support the price at current levels, despite the recent sell-off. Could be a sign that the market is ready to move