Next FOMC meeting: Sept 20th 2023.
In a recent report, Genesis Trading indicated that Q2 of this year marked a significant shift in the crypto industry as traditional financial institutions made notable moves into the digital asset space. This influx of established entities was evidenced by numerous applications for bitcoin ETFs and the introduction of various new trading platforms and products.
Genesis emphasized that a comprehensive view of Q2 2023 data shows overall positive trends, even with bitcoin trading within a limited range. Additionally, the firm highlighted the ongoing regulatory challenges, stressing that without clear regulatory guidelines, financial firms might be inclined to shift their operations overseas.
The SEC has requested an interlocutory appeal in its ongoing lawsuit against Ripple Labs, asking Judge Analisa Torres for a pre-trial motion to potentially halt proceedings during the appeal process. The regulator disagrees with Torres’ earlier decision which determined that XRP's programmatic sales weren't securities. The SEC's request aims to preemptively address complications that may arise from the Ripple judgment in other related cases. Meanwhile, Ripple's Chief Legal Officer, Stuart Alderoty, noted that the SEC doesn't currently have the "right" to appeal, which is why they're seeking this route.
A part of the case involving allegations against executives Brad Garlinghouse and Christian Larsen about the XRP token is scheduled for a jury trial in 2024. Ripple Labs faces separate charges and hasn't been accused of aiding and abetting these specific violations.
Russia is advancing its digital ruble initiative with real-world testing involving 13 banks, as announced by the country's central bank. Following the endorsement of the digital ruble law by President Vladimir Putin in July, Russia, impacted by severe sanctions from the U.S. and Europe due to the Ukraine invasion, sees the digital currency as a countermeasure to these financial constraints.
Olga Skorobogatova, the Bank of Russia's first deputy governor, anticipates that by 2025, both citizens and businesses can voluntarily use the central bank's digital currency. Initial testing will center on digital wallets, citizen-to-citizen transfers, QR code-enabled purchases, and basic automated transactions. The pilot will allow payments at 30 retailers across 11 Russian cities, with plans to extend participation to more citizens and businesses by year-end.
Markets advanced on Thursday morning following the release of an inflation data indicating a slightly subdued inflation growth compared to initial projections.
The Consumer Price Index (CPI) for July reported an annual increase of 3.2%, marginally below the anticipated 3.3%. On a monthly scale, inflation growth was pegged at 0.2%, aligning with market predictions. However, upon excluding volatile sectors such as food and energy, the core CPI for July stood at 4.7% year-on-year, notably exceeding the Federal Reserve's target of 2%.
In corporate news, over 90% of firms listed on the S&P 500 have disclosed their quarterly results, with a commendable 80% surpassing market expectations.
Bitcoin has rebounded off 28,600 and has recently traded as high as 30,260. Prices continue to trade within a falling broadening wedge pattern in place since mid-July. As much as we recently broke above this pattern, we never closed above it which is significant to report. Also, what is interesting with the recent move upwards, is that we were unable to break above the 50-day moving average, a key indicator to detect trend shifts.
In other news, the SEC is expected to appeal the XRP ruling against Ripple. The approval of the appeal could prevent the regulator and government from needing two trials.
Riot Platforms (RIOT), one of the largest publicly-traded bitcoin miners, reported mixed 2Q earnings released on Wednesday with revenue of $76.7 million, missing forecasts of $84.6 million. The firm anticipates additional consolidation within the industry. Riot shares have appreciated by over 383% this year, thanks to the robust performance of Bitcoin.
The largest crypto exchange has announced that it will delist Cardano (ADA) and Polygon (MATIC) perpetual contracts. The move might have come in response to the SEC citing ADA and MATIC as securities in lawsuits against Binance and Coinbase.
Let’s take a look at a daily chart of MATICUSDT.
Prices have come down over 67% since the yearly highs posted in February around $1.57. Since then, prices have been trading within a declining trend channel. We haven’t been able to break above the previous pivot highs.
If prices break above 0.74 it might signal a potential trend shift. A break and close above 0.85 would be crucial for bulls to take the lead.
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