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Is the US about to spin up the money printers?

Is the US about to spin up the money printers?

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Is the US about to spin up the money printers?

Overview

  • Money Printers are warming up.
  • Crypto climbs despite inflation.
  • Celsius has a $1.3b hole.
  • Binance burns millions of BNB.

Good morning Banter Fam,

It won’t be long until the Federal Reserve begins printing again.

Yes, you heard right!

At least that’s what Arthur Hayes notes in his latest article, where he predicts the rising cost of the dollar over the Yen and Euro will lead the Federal Reserve to spin up Greenbacks.

His article dives deeper into the macroeconomic effects of the Russian war on the US, the Euro region, and Japan. The Russian food and energy sanctions exacerbate inflation driven by yield curve control.

Therefore, if the US is committed to defeating Russia with economic sanctions, the US will have to find a way to help its allies. Likely it will begin to purchase Japanese and Euro Bonds that require some USD printing. The result is trillions of dollars entering the financial system. And well, we all know how Bitcoin reacts in that environment.

Moreover, in a recent Tweet, Hayes urged followers to watch for Fed intervention in both the Japanese Yen, and Euro. He expects intervention if the Yen climbs above 150 or the Euro falls below $0.90.

Market update 🌍

ETH/USD

Unexpectedly, Bitcoin and the broader crypto markets climbed throughout the day yesterday despite the higher-than-expected inflation data release. Notably, Ethereum (ETH) experienced a strong turnaround after contacting the $1,015 support level and climbed 16% in 48 hours. As a result, the price has pierced through a recent downtrend. ETH completed the US session at $1,192, up 6.82%.

High-resolution chart

Want to track Arthur Hayes’ prediction levels from the section above?

I marked the levels for you on the USD/JPY and EURO/USD charts below. When price reaches the marked levels, Hayes predicts “intervention,” aka money printing by the Fed. So now we can track the predictions in real time!

USD/JPY

High-resolution chart

EUR/USD

High-resolution chart

US markets closeGain
S&P 500-0.30%
Nasdaq-0.53%
Dow-1.55%
VIX+1.49%

Notable Gainers (24h):

Protocol (Coin)Price ($)Gain (%)
Uniswap (UNI)7.01+15
Aave (AAVE)90.68+14
Quant (QNT)96.85+14
Arweave (AR)14.34+13
Curve DAO (CRV)1.17+11
Elrond (EGLD)57.88+11
Cosmos Hub (ATOM)8.97+10
Polygon (MATIC)0.69+9
THORChain (RUNE)2.25+9
Moreno (XMR)133.48+8
CEEK Smart VR (CEEK)0.38+16
dYdX (DYDX)2.02+13
Compound (COMP)54.76+13
Bitcoin Fear and Greed Index16 Extreme Fear
“Crypto” Google Trends 90d19
“Bitcoin” Google Trends 90d37

Newswatch 📰

Celsius $1.3b in the hole. According to documents filed in the US Bankruptcy Court of NY, embattled crypto lender Celsius holds $4.3b of assets and $5.5b of liabilities and has a $1.3b difference on the balance sheet.

CoinFLEX restarts withdrawals at the 10% limit. The firm now allows customers to withdraw 10% of their accounts. Last month, the crypto exchange suspended withdrawals after its balance sheet went negative after an individual’s account went $84m into hole during the crash. The firm has begun arbitration with the individual, Roger Ver. 

News Tidbits:

  • Uniswap (UNI) token list on Robin Hood.
  • Binance’s fifth-anniversary letter: 120m worldwide users.

At the protocol level

Binance announces quarterly burns. According to its official blog, Binance has burned 1.96m BNB tokens ($444m). The quarter burn marks the third time the firm has utilized the “auto-burn” feature brought forth by BEP-95.

Protocol level tidbits:

  • Uniswap V3 deployed on Celo.
  • MakerDAO (MKR) June 2022 Financial Report.
  • Deep dive into STARK token.

NFT & metaverse update 🐵

  • Web3 game, The Beacon, has announced plans to build on Treasure DAO and Arbitrum.
  • Tony Hawk and The Sandbox (SAND) team up to create the world’s largest digital skatepark.
  • World’s rarest whiskey to be auctioned as NFT starting at $75k.
  • Opensea announces 20% layoffs, citing “crypto winter.”

Banter’s take

“Hey, wake up from your crypto winter hibernation! I heard the Fed has to begin printing money again!”

It’s only a matter of time before the money printers begin warming up. The current economic model requires constant printing, and because of the Russian War, extra pressures are being exerted on the system. So, the fight against inflation will continue on the front, but the money will leave through the backdoor into Euro and Japanese bonds. But, of course, if inflation persists, scapegoats can always be found.

At the end of the day, when trillions of USD leave the printing press, some will eventually land in crypto. It always does!

Gabri

Follow me on Twitter for daily updates!

Disclaimer

Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.

All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.

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