July 26, 2023

Markets Insights

Next FOMC meeting: July 26 2023.

  • Probability of a 0bps hike → 0%
  • Probability of a 25bps hike → 100%

The News Room

Bank objections over state provision could complicate stablecoin bill

Banking industry objections over the state's role in providing digital currency could complicate the proposed stablecoin bill in the United States. The bill, which aims to establish a regulatory framework for stablecoins, has garnered attention and debate among policymakers and industry stakeholders. However, some banking institutions are raising concerns about the potential impact on the traditional banking system and monetary policy if the state gets involved in issuing digital currencies. The pushback from banks reflects the complex and evolving dynamics between traditional financial institutions and the emerging cryptocurrency sector. As discussions on stablecoin regulation continue, finding a balance that addresses both innovation and stability while accommodating existing financial systems will be crucial for policymakers.


Singapore High Court rules crypto personal property, compares it to fiat money

The High Court of Singapore has ruled that cryptocurrencies are legally considered "personal property," providing legal clarity and recognition for digital assets in the country. The court's ruling compares cryptocurrencies to fiat money, implying that they possess similar characteristics as assets. This legal recognition is significant for the cryptocurrency industry in Singapore as it offers greater legal protection and clarity for individuals and businesses involved in crypto transactions. With clearer regulations and definitions, the ruling could pave the way for increased institutional participation and investment in the Singaporean crypto market.


Hong Kong based stablecoin FDUSD goes live on Binance with monthly audits

The Hong Kong-regulated stablecoin, Fudan University USD (FDUSD), has been launched on Binance's platform. FDUSD is pegged to the US dollar and offers a stable value, providing users with a reliable digital asset for transactions and investments. Being regulated in Hong Kong, FDUSD must adhere to local financial guidelines, offering users a level of trust and security. The launch of FDUSD on a major exchange like Binance is expected to increase accessibility and adoption of this stablecoin. As stablecoins gain popularity and acceptance in the crypto space, regulatory compliance and robust security measures will play a crucial role in building user confidence and promoting further adoption in the global market.


Trading Desk Insights

Google's stock climbed over 6% in pre-market trading following a robust earnings report that surpassed expectations, alongside an impressive growth in its cloud computing division. The cloud unit witnessed a 28% annual revenue growth and reported a positive operating income for two consecutive quarters.
- EPS of $1.44 vs. estimates of $1.34
- Revenue of $74.6 billion vs. $72.8 billion.

In other news, the Apple stock traded higher on report it’s developing its own equivalent of ChatGPT.

Moving on with the most important part of the day: The Federal Reserve interest rate decision.

There is a broad consensus that the Federal Reserve will proceed with their 11th interest rate hike since March 2022, pushing the standard borrowing rate to its peak since the early days of 2001, with an intended scope of 5.25% to 5.50%. The debate is not centered around the likelihood of a rate hike, but more on whether officials of the Federal Open Market Committee believe they have made sufficient adjustments. Advancing further with rate increases poses potential dangers to an economy that many predict is on the brink of at least a minor recession.

Now for Bitcoin. Prices are still trying to recover from the recent drop. Many are hopeful that we will retest the previous support of $29,500 - $29,700 that will now act as resistance, especially after we witnessed a rebound off the 50-day moving average which should act as temporary support.

Altcoins are outperforming with SOL +5%, LINK +3% and COMP +11%. Twitter’s name change gave a healthy boost to DOGE yesterday which is now retreating from its highest level since April.

Not the best time for market participants to build positions ahead of the Fed meeting this afternoon at 2pm EST. Best to stay on the sidelines for now and react to the news after the press conference at 2:30pm EST.



  • US new home sales
  • US Fed decision
  • Earnings → Meta & Boeing


  • ECB decision
  • US advance GDP + unemployment claims
  • BOJ decision
  • Earnings → McDonalds & Intel


  • US core PCE index
  • US consumer sentiment
  • Earnings → Exxon Mobil

Altcoin Watch - Compound (COMP)

Compound’s COMP token price drifted upward this week as the network’s total value locked (TVL) in the ecosystem drifted upwards. The token rose to $70, the highest level since Monday. It was higher by more than 20% from the lowest level this week.

COMP price rose as the token’s open interest continued rising. Data compiled by Coinglass shows that the open interest jumped to over $170 million on July 16th after the outcome of the Ripple vs SEC case.

COMP/USDT - Price has been in a strong uptrend since June 10th. The pullbacks have had slow momentum, meanwhile the upward moves are sharp, reinforced by high volume. The highlighted demand region is where buyers have stepped in. It is likely that large orders were filled at the 60.00 price level.


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