- FOMC: 75 basis-points or 100?
- Markets await the results of the FOMC decision.
- RobinHood lists the first stablecoin.
- Arbitrum saved by white hat hackers.
- OpenSea to support Arbitrum NFTs.
Good morning Banter Fam,
Another FOMC interest rate hike is upon us!
The FOMC will look to increase the Fed Fund Rate to 3.25% today (0800 EST), a 75-basis point hike from current levels. The market has priced in the 75-basis point hike. Still, the FedWatchTool forecasts an 18% possibility that the Federal Reserve pivots to a more aggressive 100-basis point hike after a hotter-than-expected CPI print last week.
Source: CME FedWatch
Crypto assets should see a slight relief if the Fed sticks to the original plan, but if they decide to pursue a greater-than-expected hike, the markets would likely feel the pain.
After the interest rate hike, the FOMC will hold its conference (0830 EST), which could increase market volatility depending on Jerome Powell’s stance during the speech. Powell, who has remained persistently hawkish in the past month, is expected to maintain his rhetoric. However, the markets would likely react positively if he pulls a surprise and hints at any easing.
Market update 🌍
The sideways trend in BTC continues ahead of the FOMC interest rate decision after the price firmly rejected the $19.2k support level. The bulls have held the support level since mid-June, but can it survive a 100-basis points rate hike surprise? BTC completed the daily candle down -3.39% to $18,875.
The US Dollar Index (DXY) continues to climb, denoting investors’ interest in keeping funds in USD instead of searching for riskier options. However, on the monthly chart, the DXY continues its path to contact the upper resistance in a channel that goes as far back as 2008. In the coming months, this channel will be a fundamental level to see if the DXY provides relief for “risk-on” assets such as crypto.
|US markets close||Gain/Loss|
Notable Gainers (24h):
|Protocol (Coin)||Price ($)||Gain (%)|
|Voyager VGX (VGX)||0.67||+8.5|
|Bitcoin Fear and Greed Index||23 Extreme Fear|
|“Crypto” Google Trends 90d||63|
|“Bitcoin” Google Trends 90d||36|
White hat hacker saves Arbitrum from a significant loss. White hat hacker @0xriptide discovered a vulnerability in Ethereum to Arbitrum Nitro bridge which could have resulted in a $250m loss for the Arbitrum network. Instead, the hacker saved the day and received a 400 ETH reward for their efforts.
Robinhood lists USDC. The US app-based trading platform introduces USDC on the Ethereum and Polygon networks to users, the firm’s first stablecoin listing. The addition will allow the future integration of payments between users on the app.
Crypto tax payments. Colorado becomes the first state to accept tax payments with crypto for a small fee. Bitcoin, Bitcoin Cash, Ethereum, and Litecoin are now accepted as payment through Paypal.
Optimism introduces Quest to onboard users. Like Arbitrum’s Odyssey program, Optimism’s Quest program looks to onboard users to the L2 network by rewarding their efforts with NFTs. Users will be eligible for various NFTs by completing a quiz and on-chain tasks tied to each NFT.
Nasdaq to launch institutional crypto custody service. Market exchange facilitator Nasdaq is looking to launch a crypto custody service for institutional investors. Ultimately, the firm aims to facilitate greater institutional participation by providing trusted services “focused on enhanced custody, liquidity, and integrity.” The firm’s request to provide the service is under review by regulators.
- Alameda Research to repay bankrupt crypto-lender Voyager $200m in assets.
NFT & metaverse update 🐵
- OpenSea to support L2 Arbitrum NFTs beginning September the 21st.
- The Sandbox hosted its first hybrid digital/real-life wedding in its metaverse.
When OpenSea introduced Solana-based NFTs into the platform, a few projects like DeGods and Okay Bears increased in price tremendously after a few weeks. Since then, Solana NFTs have been nearly as popular as their Ethereum counterparts. So the support of Solana-based NFTs by Opensea was a catalyst for those popular projects.
Fast forward to now, and OpenSea is about to introduce Arbitrum-supported NFTs on the platform starting September the 21st. What do you think will happen?
Arbitrum isn’t exactly thriving on the NFT front, but there are a few projects that have gained some considerable traction. I won’t mention any particular names, but with some research, anyone can find the top Arbitrum NFTs that will likely garner increased interest once OpenSea lists them.
Thanks for reading!
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