Bitcoin Price: US$ 30,138.00 (-0.31%)
Ethereum Price: US$ 1,911.20 (-0.57%)
Crypto investors are eagerly watching economic data in the United States to assess inflation and its impact on the economy, despite positive signs such as a drop in the Consumer Price Index. The upcoming Federal Open Market Committee meeting will determine interest rate decisions, with concerns about inflation affecting crypto prices. Data on retail sales, industrial production, jobless claims, and existing home sales will provide insights into economic growth and inflationary pressures. In the Ripple case, the SEC expressed disappointment with the court’s decision regarding retail investors but acknowledged the violation of securities laws in institutional token sales. Barclays sees the Ripple ruling as incrementally positive for Coinbase, and similar views have been expressed by J.P. Morgan and Needham, highlighting the potential benefits and reduced regulatory pressure on Coinbase’s stock.
CLabs, the developer of the Celo blockchain, is considering a transition from its independent layer-1 blockchain to a layer-2 solution on the Ethereum network. The proposed migration would leverage Optimism’s OP Stack and aims to simplify liquidity sharing, enhance security, and provide a seamless developer experience. The move could enable Celo developers to utilise Ethereum tooling and libraries more easily, as Celo is already compatible with the Ethereum Virtual Machine. In a separate development, SEC Chair Gary Gensler has cautioned that the monopolisation of artificial intelligence (AI) development for financial markets by big tech companies could destabilise the global economy. Gensler has asked the SEC staff to recommend potential regulations addressing potential conflicts and optimisation of AI applications in the interest of investors. Meanwhile, Binance, the world’s largest cryptocurrency exchange, has reportedly halted certain employee benefits due to declining profits. The exchange has faced regulatory challenges globally and recently laid off over 1,000 employees, with the potential for further reductions. Binance CEO Changpeng Zhao maintains that the company remains profitable but noted the need for prudence and the possibility of additional layoffs in the future.
Creditors of cryptocurrency lender BlockFi have accused the company of misleading investors, cutting corners, and making risky bets on FTX, despite being aware of the flaws in the exchange. The creditors are calling for the immediate liquidation of BlockFi without further delays and without granting protection to executives from future litigation. Meanwhile, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has gone live for early access users on multiple blockchains, including Avalanche, Ethereum, Optimism, and Polygon. CCIP is being tested by several partners, including Aave and Synthetix, and enables decentralised finance protocols to adopt cross-chain functionality. Additionally, there are expectations of further upside for Bitcoin and cryptocurrencies, as recent gains in equities continue and the predicted recession and bear market have not materialised. Independent macro and crypto analyst Lyn Alden suggests that the US economy may experience mild recession with persistent inflation, similar to the 1940s, driven by large fiscal deficits. However, the Federal Reserve’s current monetary policy approach resembles that of the 1970s, which may not effectively address the inflationary pressures caused by government debt.
Source:
https://coindesk.com
https://cointelegraph.com
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