Fed Hikes Rates by a Quarter Point, Bitcoin Drops 0.48%
Bitcoin, the largest cryptocurrency by market capitalization, dropped 0.48% on Thursday, Hong Kong time, after the Federal Reserve’s Federal Open Market Committee said it would raise interest rates by 25 basis points, as widely expected. The latest rate bump brings the target range to 5%-5.25%, the highest since September 2007.
Federal Reserve Raises Fed Funds Rate by 25 Basis Points, Signals Possible Pause
The U.S. Federal Reserve's Federal Open Market Committee (FOMC) continued its year-plus string of rate hikes on Wednesday, lifting the fed funds rate by 25 basis points to a targeted range of 5%-5.25%.
Reports by Fed and FDIC Reveal Vulnerabilities Behind 2 Major US Bank Failures
The Federal Reserve and the FDIC published reports on Friday concerning the fall of the second and third-largest U.S. bank failures in history.
US Government in Talks to Rescue Struggling First Republic Bank, Sources Say
Sources have revealed that U.S. government officials are in talks to rescue First Republic Bank, a struggling financial institution. The discussions involve the U.S. Treasury, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.
JPMorgan Unveils ChatGPT AI Model to Predict Stock Market Moves on Fed Statements
JPMorgan Chase has developed an AI model, based on ChatGPT, that predicts stock market movements based on statements made by the Federal Reserve. The model, called the Hawk-Dove score, interprets the language used in Fed statements and assigns a score based on the potential impact on stock movements. The bank is reportedly working on over 300 AI use cases and spending over $2 billion on building cloud-based data centers. Dropbox has also announced plans to focus on AI-powered products, cutting 16% of its workforce to hire talent for this new strategy. However, concerns about AI development have led to calls for regulation from individuals and entities such as Elon Musk, John Legend, and the Chinese government.
Seeing the Macro Forest for the Token Trees
Macro investors in digital assets consider historical environments in which cryptocurrencies have thrived as well as more challenging environments, such as 2022. Last year, digital assets were sensitive to the Federal Reserve's efforts to tighten financial conditions, and keeping a pulse on market conditions, particularly real and nominal interest rates and credit conditions, can help navigate the crypto cycle better by offering a better risk-adjusted return than a simple buy-and-HODL approach. (Coindesk)
Fed Rethinks Loophole That Masked Losses on SVB’s Securities
The Federal Reserve may close a loophole that allows some midsize banks to effectively mask losses on securities they hold, a contributing factor in the collapse of Silicon Valley Bank.
Federal Reserve Backs UBS Purchase of Credit Suisse US Units
The Federal Reserve on Friday approved UBS Group AG’s takeover of the US subsidiaries of Credit Suisse Group AG.
US Dollar Losing Reserve Status: Impact on BTC & Markets
Investors today are spending less time pouring over individual company balance sheets and are instead trying to predict how the Fed’s balance sheet is changing.
Wyoming Defends ‘Legitimacy’ of Its Crypto Charter Framework in Custodia Lawsuit
The state of Wyoming is taking umbrage at the Federal Reserve Board’s insinuations that its regulatory framework for special purpose depository institutions (SPDI) – state-chartered banks that can handle digital assets – are not up to snuff.
