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Texas has taken its first steps in order to approve a bill that would issue a 100% gold-backed digital currency. If enacted as law, the bill, which is being discussed by a Texas House committee, would create an electronic system for users to transact and pay with this digital currency and would also allow them to execute redemptions for the gold specie, or coins, backing it. Texas House Committee Passes Gold-Backed Digital Currency Bill A Texas House committee has taken the first steps in the discussion of a bill that creates a digital currency 100% backed by gold specie. The bill, identified as HB4903, which was introduced on March 10 by Representative Mark Dorazio, has garnered the support of 42 sponsors and is ready to exit by the House State Affairs Committee to be voted on by the House. The bill specifies that the comptroller of the state will “establish a digital currency that is backed by gold so that each unit of the digital currency issued represents a particular fraction of a troy ounce of gold held in trust.” In the same way, the state will have to design an electronic system to allow citizens to freely transact with this currency to make payments. Custody and Redemptions The bill, in its current state, establishes that the custody of the gold backing the digital currency will be provided by the Texas state comptroller, or can be assigned to a third party, which will have to maintain the same amount of gold as the issuance of the digital currency, making it a 100% backed digital currency. Redemptions of the currency will be processed in gold specie or in money, with the comptroller of the state or a contracted third party managing these redemptions. The implementation of this bill would cost the state $25 million for a limited system, with a more functional transactions system costing up to $100 million, according to estimations. However, the bill has managed to get grassroots support, evidenced by a 78-page document introduced on April 26, signed by several Texans calling for the approval of this sound money law. Other states are also pursuing laws to establish alternatives to the U.S. dollar as a transactional and reserve currency. On April 11, Arkansas passed a bill that makes gold and silver legal tender, allowing its citizens to use gold specie to legally pay debts and obligations without having tax implications, and 23 more states are also involved in similar legislation. What do you think about Texas’ gold-backed digital currency bill? Tell us in the comments section below. View the full article

Professor Ashok Swain of Uppsala University’s Department of Peace and Conflict Research says Saudi Arabia joining the BRICS economic bloc “would accelerate the bilateral trading being conducted using the yuan as the trading currency. ” How Saudi Arabia Joining BRICS Could Boost Use of Chinese Yuan Ashok Swain, a professor of peace and conflict research at Uppsala University in Sweden, told Al-Monitor last week that Saudi Arabia joining the BRICS economic bloc would accelerate the use of the Chinese yuan as a trading currency. Professor Swain is head of Uppsala University’s Department of Peace and Conflict Research. He is also the UNESCO chair on International Water Cooperation. Commenting on Saudi Arabia joining the Shanghai Cooperation Organization (SCO) and the BRICS, which comprises Brazil, Russia, India, China, and South Africa, he said: There is no doubt that Saudi Arabia becoming a member of China-dominated SCO and BRICS would accelerate the bilateral trading being conducted using the yuan as the trading currency. In March, Saudi Arabia became a dialogue partner of the SCO. The Shanghai Cooperation Organization was established in 2001 as a political, economic, and defense alliance; it is the world’s largest regional organization. Saudi Arabia is not yet a member of the BRICS group but the country has expressed interest in joining. Last month, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman Al Saud discussed potential collaboration between Saudi Arabia and the BRICS. Meanwhile, Saudi Arabia is actively negotiating with Beijing to price some of its oil sales to China in yuan, according to reports. While the discussions regarding yuan-priced oil contracts have been taking place on and off for six years between the two nations, they have intensified this year. The Uppsala professor noted that oil trade in yuan will be a “huge step” for China and “a significant setback to the dollar’s standing.” A growing number of countries are shifting away from using U.S. dollars to settle trades. China’s yuan recently replaced the USD as the most traded currency in Russia as well as the most used currency to settle cross-border payments in China. The BRICS group is also working to create a new currency that would reduce its member countries’ reliance on the U.S. dollar. A former White House economist believes that a BRICS currency will erode the U.S. dollar’s dominance. Another economist predicted that the yuan and euro will disrupt the U.S. dollar’s dominance and the three will form a tripolar reserve currency world. Do you think Saudi Arabia joining the BRICS will undermine the dominance of the U.S. dollar? Let us know in the comments section below. View the full article

Federal Reserve Chairman Jerome Powell has warned of “highly uncertain and adverse” economic consequences if the U.S. defaults on its debt obligations. “No one should assume that the Fed can protect the economy from the potential short and long-term effects of a failure to pay our bills on time,” he further cautioned. Fed Chair Jerome Powell’s Debt Default Warning Federal Reserve Chair Jerome Powell has warned of the potential consequences of a U.S. debt default. “We’d be in uncharted territory and the consequences on the U.S. economy could be highly uncertain and adverse,” he said this week, adding: No one should assume that the Fed can protect the economy from the potential short and long-term effects of a failure to pay our bills on time. Powell’s warning came after the Federal Reserve increased its key interest rates by 25 basis points this week — its 10th hike in 14 months. The increase takes the Fed Funds Rate to a target range of 5%-5.25%, the highest since August 2007. The Federal Reserve chairman noted that Fed officials discussed the potential risk of the U.S. debt limit during their latest Federal Open Market Committee (FOMC) meeting, but the topic did not have an impact on their rate hike decision. Many people have warned of the dire consequences of a U.S. debt default. Treasury Secretary Janet Yellen, for example, cautioned that it “would produce an economic and financial catastrophe.” The president of the European Central Bank (ECB), Christine Lagarde, said it would be a “major disaster” if the U.S. were to default on its debt obligations. As Democrats and Republicans remain deadlocked over raising the debt ceiling, Yellen revealed this week that the Treasury Department will not be able to pay all of the government’s debt obligations “as early as June 1, if Congress does not raise or suspend the debt limit before that time.” Powell stressed that the Federal Reserve does not get involved in negotiations on this topic, stating: We don’t give advice to either aside … We just would just point out that it’s very important that this be done. What do you think of Fed Chair Jerome Powell’s warning about the U.S. defaulting on its debt obligations? Let us know in the comments section below. View the full article

The government of Kazakhstan has collected over $7 million in taxes this and last year from enterprises mining cryptocurrency in the country. The news comes amid growing regulatory pressure that is limiting the industry’s access to low-cost energy while increasing its tax burden. Miners Face Higher Expenses, More Challenges Under New Legislation Kazakhstan’s coffers have received 3.07 billion tenge (almost $6.9 million) in tax payments from entities involved in the minting of digital currencies in 2022, the State Revenue Committee of the Ministry of Finance announced, quoted by local media and the crypto news outlet Forklog. Cryptocurrency miners in the Central Asian nation are required to pay taxes and fees since Jan. 1, last year. In 2023, they have already transferred 240 million tenge (almost $540,000) to the budget, by April 27. All due payments for the first quarter must be made by May 25, the finance ministry reminded. On Feb. 6, this year, President Kassym-Jomart Tokayev signed the new law “On Digital Assets in the Republic of Kazakhstan,” some provisions of which are yet to come into force. It regulates crypto-related activities, such as mining, and is accompanied by amendments to the tax code. Most notably, the legislation restricts miners’ access to cheap electricity after they were blamed for power shortages. According to Sergey Putra, Senior Coordinator for Governmental Relations at the National Association of Blockchain and Data Centers Industry in Kazakhstan, the adoption of the law demonstrates Kazakhstan’s interest in the development of the crypto industry in general. At the same time, a number of problems, related to other laws or regulations, remain relevant, he noted, commenting for Bitcoin.com News on the effects of the legislative changes for the sector. Kazakhstan Crypto Miners Cut Off From Subsidized Electricity “Miners in Kazakhstan have been disconnected from local sources of electricity for more than a year, even amid surplus from energy producing companies,” Putra elaborated. “An additional tax for the consumed electricity excludes the possibility for miners to look for sources of electricity at low rates. The fee is differentiated and increases the cost per kilowatt-hour,” explained the representative of the industry organization. Sergey Putra also pointed out that the law’s implementation through by-laws is “extremely difficult and not in the direction of supporting miners and the crypto industry as a whole.” He expressed hope that these are temporary issues and that their solution would bring a new period of development for bitcoin mining in the country. Kazakhstan became a crypto mining hotspot when China cracked down on the sector in the spring of 2021. Attracting miners with subsidized electricity, it ranked third in terms of average global monthly hashrate in January of 2022, as per data provided by the Cambridge Center for Alternative Finance. However, according to the Norway-based industry analyst Jaran Mellerud, Kazakhstan’s share has since shrank from a peak of 18% in October 2021 to just 4%, as of May 2023. Do you think Kazakhstan will restore its position as a leading crypto mining destination? Share your expectations in the comments section below. View the full article

Recent data reveals that while the banking industry in the U.S. is facing significant challenges, executives are mentioning “credit tightening” more frequently in earnings calls than during the 2008 financial crisis. Additionally, Google Trends data indicates a surge in search queries related to bank failures and crises. The findings suggest that the U.S. economy is experiencing a period of instability and uncertainty, prompting concerns among market observers. ‘Credit Tightening’ Mentions on Company Calls Highlight Concerns Over the Stability of the U.S. Banking Industry The U.S. economy is struggling with a trifecta of challenges: soaring inflation, steep interest rates, and a banking industry in disarray. Since Silvergate Bank’s announcement on March 8, 2023, that it would cease operations and liquidate its assets, the country has witnessed a string of significant bank failures. Silicon Valley Bank, Signature Bank, and First Republic Bank have all followed suit, marking the second, third, and fourth largest bank failures in U.S. history. A report published on May 4, 2023, sheds light on the banking sector’s ongoing issues. According to the research, executives are increasingly using the term “credit tightening” during their earning calls. The report cites Bloomberg data, which reveals that the frequency of “credit tightening” mentions on company calls has surpassed the levels seen during the 2008 financial crisis. This trend is alarming for the banking industry, as it suggests that executives are struggling to manage credit risk and maintain profitability. The banking industry is showing signs of caution, as evidenced by the increasing mentions of “credit tightening” on company calls. This trend is concerning, as it often leads to a negative impact on the economy. When banks become more cautious about lending money, it becomes harder for market participants to obtain credit, which can slow down economic growth. In addition to this, the report also notes that news stories alluding to “credit tightening” have reached record highs. Google Trends Shows an Uptick of Searches Related to ‘Bank Failure,’ ‘Bank Crisis,’ and ‘Credit Tightening’ On March 19, 2023, Bitcoin.com reported that Google Trends data revealed a trend in search queries related to the banking industry. Searches for terms like “banking crisis” and “bank runs” had skyrocketed at the time. Current 30-day statistics show that the search query “bank crisis” reached a score of 89 out of 100 on April 6, and a perfect score of 100 on April 18. By the end of April, the score had dropped to 68 out of 100. Similarly, the search query “bank failure” hit a score of 78 on April 26, and a perfect score of 100 on April 28. The topic of the banking crisis has gained significant traction in several states, including Maine, Vermont, Massachusetts, Nebraska, and Arizona. Meanwhile, the issue of bank failures has piqued the interest of people in Alaska, West Virginia, Delaware, Maine, and Montana. According to Google Trends, related topics and associated queries include the U.S. government and First Republic Bank. Similar to the report on May 4, another trending search query is “credit tightening,” which reached a perfect score of 100 on April 6, and a score of 62 on April 21. This topic is particularly popular in California, Florida, and New York. What do you think the surge in “credit tightening” mentions on company calls and the increase in search queries related to bank failures and crises mean for the future of the banking industry and the U.S. economy as a whole? Share your thoughts in the comments section below. View the full article

According to John Reed Stark, crypto exchange Coinbase’s assertions that its business activities were endorsed by the U.S. Securities and Exchange Commission (SEC) when it approved its initial public offering are “a surefire loser.” According to Stark, the SEC’s approval of Coinbase’s registration statement was done to ensure the latter had made “proper disclosures in their application.” SEC Not Constrained by Any Doctrine John Reed Stark, a former chief of the U.S. Securities and Exchange Commission (SEC) Office of Internet Enforcement, has said the arguments that Coinbase’s business activities were endorsed by the commission when it approved its initial public offering (IPO) are “a surefire loser.” Stark also said the assertion that Coinbase has “some sort of regulatory safe harbor” and that the SEC is constrained by some sort of doctrine “has no basis in law or in fact.” The remarks by Stark came just days after Coinbase chose to publicly disclose its response to the Wells notice it received from the SEC back in March. As reported by Bitcoin.com News, Coinbase made clear its opposition to the SEC’s enforcement actions. Coinbase also implied in its response that the SEC had in fact greenlighted its core business when it allowed the IPO to proceed. The company went public in April, 2021. Some argue that when the SEC approved Coinbase’s IPO, the SEC also approved Coinbase’s business. What a crock and possibly a criminal offense. Yes, you read that correctly — a criminal offense. Having served as Chief of the SEC Office of Internet Enforcement for 11 years, IMHO,… pic.twitter.com/aIQXgCRVNb — John Reed Stark (@JohnReedStark) May 1, 2023 However, in his May 1 Twitter thread, Stark, who worked for eleven years as an SEC chief, assailed the assertion that the commission’s approval of Coinbase’s registration statement amounted to an endorsement of the crypto exchange’s activities. According to Stark, the SEC’s approval of Coinbase’s registration statement was done to ensure the latter had made “proper disclosures in their application.” ‘No Approval Clause’ To further support this argument, Stark pointed to regulations which compel companies seeking to raise funds from the public to insert a “No Approval Clause” in their respective prospectuses. The intention of this clause is to inform prospective investors that regulators that include the SEC have neither approved nor disapproved securities being offered. The former SEC enforcement chief also shared more links which seemingly support the argument that the Commission is not being constrained by some “sort of regulatory estoppel.” Meanwhile, Stark also suggested in his tweet that Coinbase’s own Form S1 Registration Statement under the Securities Act of 1933 proved that the crypto exchange was aware that its business activities had the potential to cause problems. He said: Finally, Coinbase’s Form S1 Registration Statement under the Securities Act of 1933, the form that Coinbase filled out to become a public company and the form that the SEC reviewed, disclosed that there is regulatory uncertainty regarding the status of their activities and that Coinbase could be subject to a litany of civil, criminal, and administrative fines, penalties, orders and actions (which is exactly what is happening right now). Stark ended the long tweet by reiterating that the “no approval clause” was a sufficient warning to Coinbase executives who may face potential jail time should the crypto exchange lose its fight against the SEC. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Coinbase, the San Francisco-based cryptocurrency exchange, recently announced the launch of a new service called Coinbase International Exchange. The new platform will enable institutional users outside of the United States to trade bitcoin and ethereum perpetual futures. The company stated in a tweet that the service will begin by offering perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions. Coinbase Reveals Bitcoin and Ethereum Perpetual Futures Settled in USDC With up to 5x Leverage The launch of Coinbase International Exchange follows the company’s approval to operate its digital currency operations in Bermuda, which was granted by the Bermuda Monetary Authority (BMA). In a blog post, Coinbase noted that “building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the [United States].” Coinbase added: As more and more markets are moving forward with regulatory frameworks to become crypto hubs, we believe the moment is right to launch this international exchange. The company insists that the Coinbase International Exchange provides a “liquidation framework that meets rigorous compliance standards” and will include real-time 24/7 trading and liquidity provided by external market makers. The announcement comes after Coinbase received a Wells notice from the U.S. Securities and Exchange Commission (SEC) for potential violations. Following the notice, Coinbase filed an action suit against the SEC for lack of regulatory clarity and also shared its Wells response with the public shortly after. Coinbase notes that while other jurisdictions are moving forward with crypto-forward regulatory frameworks, it would like to see the United States take a similar approach instead of regulation by enforcement, which has led to a disappointing trend for crypto development in the country. What impact do you think the launch of Coinbase International Exchange will have on the institutional adoption of cryptocurrencies outside of the United States? Share your thoughts about this subject in the comments section below. View the full article

This year, the world has witnessed a surge in the popularity of artificial intelligence (AI) software, with a plethora of cutting-edge platforms such as Openai’s Chatgpt 3.5, Chatgpt 4.0, DALL-E, Stable Diffusion, and other innovative tools like Midjourney and Google’s Bard taking the internet by storm. Amidst this technological revolution, Crypto.com’s CEO Kris Marszalek recently hosted an ask-me-anything (AMA) discussion, where he unveiled the exchange’s latest offering — an AI-powered user companion named Amy. Crypto Education Goes High-Tech With Amy, Crypto.com’s Latest AI Offering Crypto.com’s new chatbot, Amy, has been designed to assist users in their quest to learn more about the crypto industry, providing them with information on various crypto assets and projects. With its AI capabilities, Amy can offer users “near real-time information” on the latest developments in the crypto world, as well as insights into historical events that have shaped the industry. From blockchain technology to price listings, the firm says Amy is well-versed in all aspects of the crypto landscape, making it a resource for anyone seeking to expand their knowledge in this field. The company stated that Amy is based on ChatGPT from OpenAI, but Amy is specifically designed for cryptocurrency and blockchain information. Currently, Crypto.com has launched Amy as a pilot in its beta phase, and select users who leverage a crypto.com/price account will be permitted to access the AI-powered chatbot. “Access to Amy will be steadily scaled to more Crypto.com users over the coming weeks,” the company disclosed. “Crypto.com will also introduce Amy to additional Crypto.com experiences over time, including within the Crypto.com App.” Crypto.com is not the only digital currency business to develop an AI product. On March 1, 2023, Binance unveiled an AI-infused non-fungible token (NFT) art platform named Bicasso. The platform conducted a limited run of 10,000 mints and then closed the software to general users, and there is now a waitlist to join. In its Tuesday announcement, Crypto.com specified that Amy “does not provide financial or investment advice.” The company also stated that “learnings from this pilot will be applied to Amy’s continued rollout, as well as future AI-powered projects from Crypto.com.” “Building the ecosystem has been a priority focus for Crypto.com from the start,” Marszalek remarked. “We double downed on our commitments to building and responsible innovation, and Amy is the latest example of our incredible momentum.” What do you think about the rise of AI-powered tools in the cryptocurrency industry? Let us know your thoughts in the comments section below. View the full article

Following the acquisition of First Republic Bank by JPMorgan Chase, several regional banks such as Pacwest and Western Alliance experienced a significant drop in their stock prices. On Tuesday afternoon, all four major U.S. benchmark stock indexes are in decline as regional bank stocks hit new lows. Banking Industry on Edge as Pacwest Shares Sink Causing Trading Halt Pacwest, a regional bank based in Beverly Hills, California, is facing challenges after the release of its 2023 first quarter earnings report. Following the publication of the earnings, the bank’s stock price plummeted by 35% on Tuesday at 11:00 a.m. Eastern Time. The earnings report revealed a “net loss available to common stockholders of $1.21 billion, or a loss of $10.22 per diluted share.” The upheaval at Pacwest comes on the heels of First Republic Bank’s recent collapse and three major bank failures that occurred in March. Despite three out of these four banks representing the largest bank failures in the United States, President Joe Biden reassured the public on Monday that the banking industry is on track toward “stabilization.” PACW stock chart by TradingView Besides Pacwest shares dropping over 35%, trading was halted due to volatility concerns. Other banks experiencing losses on Tuesday include Western Alliance and Metropolitan Bank, whose stocks have also seen sharp declines during today’s trading sessions. Amidst this turmoil within bank equities, CFRA analyst Alexander Yokum told Marketwatch that while taxpayers will not be responsible for these failures, financial institutions are likely to increase fees. “All the costs of bank failures will be borne by banks and not taxpayers, although we expect banks to indirectly pass along many of these costs to customers through higher fees and higher interest rates on loans,” Yokum stated. The collapse of First Republic Bank has left Wall Street investors uneasy, even though JPMorgan Chase CEO Jamie Dimon declared on Monday that “this part of the crisis is over” after taking over the struggling bank. While conventional equity markets are down, cryptocurrencies and precious metals have experienced growth amidst the banking industry’s tribulations. Notably, the top two leading cryptocurrencies, bitcoin (BTC) and ethereum (ETH) increased by 1.1% to 1.5% in the wake of Wall Street’s turmoil. Concurrently, the precious metals gold and silver have also surged in value against the U.S. dollar, with gains ranging between 1.4% and 1.54%. After sinking more than 35% on Tuesday, Pacwest shares rebounded and are currently down between 22% to 27% against the greenback. What do you think the future holds for the U.S. banking industry? Share your thoughts in the comments section below. View the full article

While the next difficulty change for Bitcoin is just two days away, the network’s hashrate soared to unprecedented heights, reaching 491.15 exahash per second (EH/s) on May 02, 2023, at block height 787,895. This staggering amount of computational power came tantalizingly close to a half zettahash or five hundred quintillion hashes per second. Bitcoin’s Hashrate Surges to Unprecedented Heights, Nearly Reaching Half a Zettahash On the second day of May 2023, Bitcoin’s hashrate achieved a remarkable feat, tapping into a new record at block height 787,895. In a stunning display of computational power, the network reached a 24-hour high of approximately 491.15 EH/s. This momentous spike in hashrate comes at a time when the network has been recording an average of roughly 344.4 EH/s over the past 2,016 blocks, with the hashrate dipping below the 300 EH/s range on five separate occasions since April 2, 2023. However, the month of April has seen slower block intervals, with block times consistently exceeding the ten-minute average over the 30-day period. The consequences of Bitcoin’s slower block times have been significant, leading to a notable backup in the mempool. As of 8:30 a.m. Eastern Time on May 2, data shows that a staggering 240,000+ transactions remain unconfirmed. The latest surge in hashrate follows a previous milestone achieved on April 18, 2023, when the network tapped 440.80 EH/s at block height 786,013. However, Bitcoin’s current all-time high of 491.15 EH/s is even more impressive, and awfully close to a half zettahash. To put this into perspective, a zettahash represents an astronomical number of hashes, equivalent to one sextillion hashes per second. In a recent report by Bitcoin.com News, research analyst Sam Wouters from River Financial made a bold prediction that Bitcoin could enter the zettahash era in two years’ time. Wouters’ estimates suggest that “at the current growth rate in 2023, we’d reach a Zettahash by the end of 2025.” Despite the network’s quick all-time high in hashrate, block times continue to lag behind the ten-minute average, and a downward difficulty adjustment between 1.22% to 2% is expected. At the time of writing, Foundry USA reigns as the top mining pool, boasting 107.66 EH/s or 31.17% of Bitcoin’s total hashpower. Foundry is followed closely by Antpool with 80.75 EH/s, F2pool’s 42.62 EH/s, Binance Pool’s 29.91 EH/s, and Viabtc’s 23.18 EH/s. What are your thoughts on Bitcoin’s soaring hashrate and the predicted entrance into the zettahash era? Share your opinions in the comments section below. View the full article

Polkadot was one of Tuesday’s biggest movers, as the token dropped to a six-week low in today’s session. Prices fell for a long-term support point of $5.60, as the global crypto market cap was once again 1% lower today. Avalanche also hit a price floor on Tuesday. Polkadot (DOT) Polkadot (DOT) was down for a second straight session on Tuesday, as sentiment in cryptocurrency markets remained bearish. DOT/USD dropped to a low of $5.61 earlier in the day, which comes less than 24 hours after trading at a high of $5.82. As a result of the move, polkadot slipped to its weakest point since March 12, when price was trading at $5.47. Today’s decline saw DOT near a floor at $5.60, with bulls so far rejecting a breakout below this point. At the time of writing, the token is trading at $5.68, which comes as the relative strength index (RSI) jumped from a floor of its own. The index rebounded from a floor at 36.00, and as of writing, is tracking at 37.52. Avalanche (AVAX) In addition to DOT, Avalanche (AVAX) was another notable mover on Tuesday, as the token fell to its own level of support. Following a high of $17.06 to start the week, AVAX/USD sunk to a bottom at $16.53 earlier today. Tuesday’s decline saw bears attempt to take avalanche to a long-term price floor at $16.30, however they were unsuccessful, thus far. Looking at the chart, and similar to what occurred with DOT, the breakout was rejected as the RSI remained above a floor of 41.00. As of writing, price strength is tracking at 41.27, with a ceiling of 43.00 a possible target for bulls looking to extend the current rebound. Should this occur, there is a chance that AVAX could reach $17.00 Register your email here to get weekly price analysis updates sent to your inbox: Will avalanche climb above $17.00 this week? Let us know your thoughts in the comments. View the full article

On Monday, Morgan Stanley’s equity strategist, Michael Wilson, shared his thoughts on the state of Wall Street. He expressed his belief that a sell-off could be imminent, and that this could occur as a result of U.S. Federal Reserve chairman Jerome Powell’s upcoming remarks on Wednesday. Furthermore, there has been a great deal of conjecture surrounding the possibility of the central bank cutting the federal funds rate multiple times throughout the year. However, Wilson believes that investors who are expecting this outcome will ultimately be disappointed. Powell’s Message Could Spark a ‘Near-Term Negative Surprise for Equities’ This Wednesday, all eyes will be on the Federal Open Market Committee (FOMC) meeting, as the U.S. Federal Reserve is poised to raise the benchmark interest rate by 25 basis points (bps). While some economists predict that this hike will be the final one of the year, a few market observers anticipate multiple rate cuts in the future. These speculators point to the recent banking industry turmoil in the U.S. as a potential catalyst for the Fed to loosen its monetary policy. However, there are several analysts who believe that investors expecting cuts are in for a rude awakening. They caution that the Fed’s commitment to holding rates high and not cutting this year is unwavering, due to persistent inflation. According to Morgan Stanley’s equity strategist, Michael Wilson, U.S. equity markets may be in for a rough ride this week if chairman Jerome Powell fails to meet the market’s expectations of a benchmark rate cut. Wilson warns that a “hawkish” message from Powell could trigger a “near-term negative surprise for equities,” causing a sell-off. Wilson also notes that the market has grown increasingly reliant on tech stocks with large valuations, which could exacerbate the impact of any negative news. Furthermore, he warns that investors who are banking on the Fed cutting rates this year are likely to be frustrated with the outcome. “We believe that equities are priced for an optimistic policy outcome (rate cuts in ’23 without the growth downside),” Wilson stated in his note to investors. Fed Officials Desire to Avoid the Mistakes of Past Fed Chairs The sentiment that the Federal Reserve will maintain its strict stance on interest rates is not limited to Morgan Stanley’s equity strategist. Claudia Sahm, an American economist and macroeconomic expert, echoed this sentiment on Sunday, stating that Powell had made it clear that the Fed would not cut rates this year and that people should “believe him.” In a Twitter thread, Sahm thinks the Fed’s stance will be strict for three reasons: the desire to avoid the mistakes of past Fed chairs, the reverence for former chair Paul Volcker’s approach to monetary policy, and the personal experiences of current Fed officials with high inflation in the 1970s and early 1980s. Sahm tweeted: Markets expect the Fed to cut multiple times this year—referred to as a pivot—while the Fed says it will hold rates high and not cut this year. I believe the Fed. In response to Claudia Sahm’s comments on the Federal Reserve’s commitment to holding rates high, the Twitter account Wall Street Silver pointed out that while Paul Volcker’s monetary policy and the emergence of new oil sources in the early 1980s helped control inflation, the underlying problems persist. “The Fed can’t solve this problem,” Wall Street Silver said. They can kill the economy, but as soon as rates come down, the same underlying problems exist and inflation roars back. The Fed only has one tool and will print us into oblivion eventually, because they can’t fix this.” Sahm clarified that she was merely explaining “how the history is viewed inside the Fed, not what’s true.” Do you think the Federal Reserve’s commitment to holding rates high will be enough to control inflation, or will the underlying problems persist and lead to a potential economic crisis? Share your thoughts in the comments section below. View the full article

Bitcoin fell below the $28,000 level on Tuesday, as markets continued to prepare for tomorrow’s Federal Reserve interest rate decision. The Fed is expected to increase rates by 0.25%, despite the U.S. economy slowing down. Ethereum also remained lower, moving close to a breakout below $1,800. Bitcoin Bitcoin (BTC) dropped below $28,000 on Tuesday, as markets prepared for the upcoming Federal Open Market Committee (FOMC) decision. BTC/USD slipped to an intraday low of $27,680.79 earlier in today’s session, which came less than 24 hours after trading at a high of $28,626.28. As a result of this move, bitcoin nearly collided with its recent price floor at $27,600, hitting a six-day low in the process. Looking at the chart, the latest decline comes as the relative strength index (RSI) moved below a floor of its own at 50.00. At the time of writing, the index is tracking at 46.17, with the next visible point of support at 43.00. Bitcoin has since moved back above $28,000, and is currently trading at $28,176.91. Ethereum Ethereum (ETH) was also lower in today’s session, with prices also falling to a key level of support. Following a high of $1,851.19 to start the week, ETH/USD plunged to a bottom at $1,809.19 earlier in the day. Today’s drop saw the world’s second largest cryptocurrency move below its long-term price floor at $1,830. ETH has since rebounded from this floor, as sentiment remained relatively stable, despite the earlier decline. This happened despite the RSI trading under a support point of its own at 45.00, with a current reading of 44.30. There could be more moves on Wednesday following the Fed decision, with a potential move above $1,900 still on the cards. Register your email here to get weekly price analysis updates sent to your inbox: Will the Fed raise interest rates tomorrow? Leave your thoughts in the comments below. View the full article

The governments of India and Russia are considering integrating part of their payment systems, in order to counter the possible future effect of US sanctions on the capital flows of each country. The deal would include the integration of India’s Rupay card system and its Russian counterpart, Mir Cards, to allow seamless payments between the two countries. Russia and India Consider Integration of Payment Stacks Russia and India are mulling the integration of their debit payment stacks in order to prevent negative affects on their common payment flows by a hypothetical extension of U.S. sanctions in the future. In a recent high-level meeting, in which India’s External Affairs Minister Subrahmanyam Jaishankar and Russian Deputy Prime Minister Denis Manturov were present, the countries agreed to explore this integration to facilitate capital flows. The agreement included considering the acceptance of Russia’s Mir Cards system in India, and India’s Rupay system in Russia, allowing citizens of both countries to make cross-border payments using debit cards natively. There were also talks about a higher integration at the event, with authorities agreeing to further explore the interaction of the Unified Payments Interface (UPI), the Indian payment stack, and the Faster Payments System (FPS), its Russian counterpart. India has been active in integrating its payment system with other countries. In February, it linked Singapore’s payments system, called Paynow, into its payment stack, allowing cross-border payments between the two countries without using additional payment bridges. Preventing US Sanction Effects The main objective behind this exploration is to prepare for a possible extension of U.S. sanctions that would cut the connection between the banking systems of the two countries, making the possibility of direct payments unfeasible. While this is being projected into the future, some Indian companies have already been unable to collect payments linked to dividends of Russian oil companies due to the sanctions enacted by the U.S. government on Moscow. According to local reports, ONGC Videsh Ltd, Oil India, Bharat Petroleum Corp, and Indian Oil Corp — four Indian companies — have had payments of between $300 and $400 million blocked since last year due to the disconnection of Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, that allows for cross-border payment using the current banking system. What do you think about the possible integration of the Indian and Russian payment systems to minimize the effect of US sanctions? Tell us in the comment section below. View the full article

PRESS RELEASE. ProBit Global has announced the native asset for the Ethereum network, ETH, as the next token for its series of trading competitions. The crypto trading contest, which allows ProBit Global users to win rewards based on their trading volume, gives traders a low-risk way to win additional assets, with a total prize pool of 5,000 USDT up for grabs in this latest edition. The ETH edition of ProBit Global’s popular trading competition comes in the wake of Ethereum’s successful completion of its Shapella upgrade, which introduced new features to the network, including enabling validators to withdraw their staked 32 ETH from December 2020. The opportunity to win a share of the 5,000 USDT prize pool in return for trading the second-largest cryptocurrency comes as the dust settles on speculations around the upgrade’s impact on ETH’s price. Despite what some market insiders had earlier suggested, data from token.unlocks and analytics firm, Glassnode, have now shown that the impact of the upgrade was on the Ethereum economy was not as severe as expected. Rather, considering the outlook that has been shared about the long-term impact of the shift from the Proof of Work (PoW) to the Proof of Stake (PoS) mechanism, it strengthened the resolve of many from within and beyond the Ethereum community to acquire some ETH. “It seems a good time to get some ETH into the hands of more crypto enthusiasts—both new and old—considering the tidal energy that an improved Ethereum network will likely produce over time,” says ProBit Global Product Marketing Manager, Berkay Tuncay. “All eyes have been on the Shapella upgrade and the entire transition that Ethereum has been going through for some time.” Slated to run from May 2 to 15, 2023, the upcoming competition enables traders to test their trading skills as the Ethereum network evolves with exciting opportunities, which some industry insiders say could see it diverge from Bitcoin and even increase in value. The top 20 volume traders—ranked in total trading volume at a USDT rate—in the ETH/BTC and ETH/USDT trading pairs will share the total prize pool of 5,000 USDT (see details). The top trader will get 450 USDT, while the last in the order (20th) will get 175 USDT. While every trader has to stake a minimum of 100 PROB to be eligible for the competition, the membership level of each trader based on the amount of PROB staked will help unlock even lower trading fees. Other exclusive ongoing events on the ProBit Global platform include the Buy Crypto event, Crypto Buying Blitz, and Learn & Earn: Smart Satoshis. ABOUT PROBIT GLOBAL Founded in 2018, ProBit Global is a Top 20 cryptocurrency platform featuring access to more than 800 cryptocurrencies and over 1000 different markets. ProBit Global aims to position itself as a world-class exchange for both crypto enthusiasts and novice investors, and boasts a user base of more than 2,000,000 active users, globally. With a powerful crypto trading interface, easy integration for automated crypto trading bots, fiat on-ramp support for 45 currencies, and a multilingual website in 46 languages, ProBit Global has all the features to make your cryptocurrency trading experience easy. To learn more, visit probit.com. ProBit Global Telegram: https://t.me/ProBitGlobalOfficial DISCLAIMER: The information provided on this website is for informational purposes only and does not constitute financial advice. ProBit Global is not responsible for any losses or damages arising from the use of this website or any of the information contained herein. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

International analysts have called out the supposed use of the national security policy of the U.S. as a tool to justify the establishment of blockades and economic sanctions against countries like China and Russia. While U.S. Treasury Secretary Janet Yellen has recognized that a decoupling of the economies of the U.S. and China would be “disastrous,” the U.S. government is said to be putting its security policies over this concern. U.S. Using National Security Policy as Abusive Tool, Analysts Warn Several analysts have referred to the usage of the U.S. national security policy as a pretext to establish economic sanctions and take unjustified measures against other countries. While on April 20, U.S. Treasury Secretary Janet Yellen stated that the U.S. was seeking a “constructive and fair economic relationship with China,” but that it would use its tools to protect its national security with no interest in gaining an economic advantage as a consequence, these policies are indeed hurting the global economy and disrupting supply chains, per the analysts statements. Lewis Ndichu, from the Nairobi-based think tank Africa Policy Institute, told Xinhua this policy of putting national security over other important issues was “putting the cart ahead of the horse.” American analysts are also voicing their concerns. Gary Hufbauer, senior fellow at the Washington-based Peterson Institute for International Economics (PIIE), explained that these measures went “beyond the reasonable scope of national security.” Hufbauer criticized the existent tariffs on aluminum and steel, and how the government wants to link other articles to national security. He stated: Advanced semiconductors and some AI and telecom have security implications, but not commodity chips (the bulk of the market) or services like TikTok. Politicization of Trade Other analysts intended to explain these postures by linking them to politicization, with the objective of taking the right of development from other countries. This is the opinion of Chinese Foreign Ministry Spokesperson Wang Wenbin, who recently stated: The U.S. habitually politicizes technology and trade issues and uses them as a tool and weapon in the name of national security. Some even comment that this kind of strong-arm policy is used by U.S. presidential candidates to win support from certain groups. Cavince Adhere, a Kenya-based international relations scholar, declared that “candidates running for office often use the rhetoric of being tough on China to win votes. Eventually, such campaign-driven attitudes end up informing U.S. foreign policy toward China.” What do you think about the measures taken as part of U.S. national security policy? Tell us in the comment section below. View the full article

Johann Steynberg, the founder and CEO of Mirror Trading International, has been ordered to pay over $1.73 billion in restitution to victims of his bitcoin ponzi scheme. The court has also ordered Steynberg to pay a civil monetary penalty of a similar amount. The Commodity Futures Trading Commission (CFTC) conceded that orders requiring payment of funds “may not result in the recovery of any money lost because wrongdoers may not have sufficient funds or assets.” ‘Largest Fraudulent Scheme Involving Bitcoin’ in the History of the CFTC A United States Federal Court recently handed down a default judgment and permanent injunction against Johann Steynberg, the CEO of the now-defunct bitcoin ponzi Mirror Trading International (MTI). According to a statement released by the U.S. derivatives regulator the Commodity Futures Trading Commission (CFTC) on April 27, Steynberg is required to pay $1,733,838,372 in restitution to defrauded victims and a $1,733,838,372 civil monetary penalty. The derivatives regulator’s statement also revealed that the penalty handed down by the court “is [the] highest civil monetary penalty ordered in any CFTC case.” The court action itself is reported to be the “largest fraudulent scheme involving Bitcoin charged in any CFTC case.” As previously reported by Bitcoin.com News, Steynberg, who was based in South Africa at the time, had repeatedly faced allegations of operating a bitcoin Ponzi scheme before he fled to Brazil in December 2020. Shortly after his disappearance, liquidation proceedings against MTI were instituted by victims based in South Africa. Almost a year after he disappeared, Steinberg was captured by Brazilian law enforcement and is awaiting his extradition to either the U.S. or his native home of South Africa. Steynberg and MTI Failed to Comply With CPO Regulations As per the CFTC statement, the U.S. court order outlines Steynberg’s alleged fraudulent activities as well as his failure to comply with regulations. “The order finds that Steynberg, the founder and CEO of Mirror Trading International Proprietary Limited (MTI), a company currently in liquidation in the Republic of South Africa, is liable for fraud in connection with retail foreign currency (forex) transactions, fraud by an associated person of a commodity pool operator (CPO), registration violations, and failure to comply with CPO regulations,” reads the CFTC statement. Although MTI was primarily operating and targeting victims based in South Africa, the CFTC statement claimed that Steynberg and his company had accepted bitcoin from “some 23,000 individuals in the U.S.” without being “registered as a CPO as required.” The regulator also alleged that Steynberg and MTI had “misappropriated all of the Bitcoin they accepted from pool participants.” Meanwhile, the CFTC also acknowledged in the statement that the penalty handed down by the court may “not result in the recovery of any money lost because wrongdoers may not have sufficient funds or assets.” Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Mawson Infrastructure Group announced on Monday that the company has secured a new mining site in Corning, Ohio. The bitcoin mining firm, on May 1, 2023, unveiled its plans to set up its miners at the new location by Q3 of this year, with an aim to raise the operation’s hashpower by 1 exahash per second (EH/s). Bitcoin Miner Mawson Acquires 24 MW in Ohio With Room for Expansion On May 1, 2023, Mawson Infrastructure Group revealed it has signed an agreement for a new site in Ohio. This development comes on the heels of the company’s prior ventures in Pennsylvania and the decision to pull out of Australia. The new mining site, located in Ohio, is expected to offer a starting capacity of 24 MW. Mawson, however, anticipates expanding its operations to harness an additional 26 MW of power, effectively bringing the total capacity of the site to 50 MW. MIGI stock chart by TradingView The mining company disclosed it already operates 240 MW of capacity in the surrounding area. “We are very excited to have finalized this new site acquisition. The addition of this site to our portfolio of assets in the region is a great achievement by the team reinforcing our revised strategy of focus in the PA/OH region,” Mawson’s CEO, James Manning commented. Despite the expansion news, Mawson’s publicly-listed shares (Nasdaq: MIGI) have experienced a 5% drop in the last 24 hours and a 1.97% decline over the last month. Nonetheless, the statistics of the past six months reveal an upward trend in MIGI shares by 11.26%, and year-to-date, the shares have increased more than 107%. Mawson’s initial plan for the Corning facility is to house 12 mobile data center (MDC) units and 7,056 miners. Both hosted and self-hosted machines will be deployed at the new mining location. Just prior to the Ohio announcement, in April, Mawson sold its Greenfield Texas sites for $8.5 million. What do you think the future holds for Mawson Infrastructure Group’s expansion plans in the PA/OH region? Share your thoughts about this subject in the comments section below. View the full article

Amid the collapse of the second, third, and fourth largest banks in American history, U.S. president Joe Biden reassured the public that the country’s banking system remains sturdy. However, the president also acknowledged the “threat by the speaker of the House to default on the national debt.” Biden Expresses Confidence in American Banking System Despite First Republic Bank Collapse Biden’s recent statements were made following California’s financial regulators seizing First Republic Bank and placing it under the control of the U.S. Federal Deposit Insurance Corporation (FDIC). After the bank’s seizure, it was then sold to JPMorgan Chase, the largest bank in the United States, which pledged to cover all deposits, including the uninsured. Biden expressed his approval of the government’s handling of the crisis, saying, regulators have taken action to facilitate the sale of First Republic Bank, making sure that all depositors are protected, and “taxpayers are not on the hook.” “These actions are going to make sure that the banking system is safe and sound,” Biden stated. “And that includes protecting small businesses across the country who need to make payroll for workers and their small businesses.” The president’s comments echo those made after the fall of Silicon Valley Bank and Signature Bank. U.S. Treasury secretary Janet Yellen also gave similar reassurances when the two banks collapsed, emphasizing the safety and soundness of the banking industry. However, some have criticized Yellen’s handling of the crisis, with one contributor to the New York Post, Charles Gasparino, labeling her “clueless” for her failure to prevent the collapse of First Republic Bank. Yellen was “drooling happy talk about the banking system, and asking other banks to bail out the zombie. She’s also doubling down on her mistakes that caused this banking crisis in the first place, making it more difficult to escape,” Gasparino said. Yellen has sounded an alarm about the U.S. defaulting on its debts, a concern that Biden echoed during his press conference on First Republic’s downfall. On Monday, the president emphasized the need to ensure the continued reliance on the economy and financial system, calling for the “threat by the speaker of the House to default on the national debt” to be taken off the table. Republican lawmakers, however, have stood firm on the country’s debt limit, demanding repeals of the Inflation Reduction Act before they agree to any increase. The potential default on the country’s debt by the end of the summer has heightened fears of financial instability and a prolonged recession in the United States. In a note shared with Bitcoin.com News, Ruslan Lienkha, the chief of markets at Youhodler, an international fintech platform based in Switzerland, expounded on the impact of First Republic’s failure on the stability of the U.S. banking sector. Lienkha voiced apprehension that the Fed’s rate hikes that have taken place in the past year have been particularly “painful for small and mid-sized banks in the United States.” “Which means the collapse of First Republic Bank is likely not the last one,” Lienkha opined. “A potential bankruptcy of the bank could trigger a broader financial crisis in the country, affecting the real estate market and many other related industries—which could have massive implications for the world economy.” What do you think the government will do to try and prevent another banking crisis and a potential default on the national debt in the future? Share your thoughts in the comments section below. View the full article

Ethereum network fees have experienced a significant upswing following the implementation of the Shapella upgrade on April 12th. In the last 30 days, onchain fees have soared by over 153%, from a prior rate of $4.65 per transfer to a current average of $11.80 per transaction. The data highlights a substantial surge in the costs associated with Ethereum network transactions, indicating a notable increase in onchain activity. Onchain Fees on Ethereum Network Soar by 153% in a Month, While Arbitrum’s Daily Transactions Exceed ETH Post-Shapella Upgrade Over the past month, Ethereum network fees have witnessed a material surge, with the cost of onchain transfers surging from $4.65 per transaction on April 1, to an average of 0.0064 ether or $11.80 per transfer at present. The data reveals a staggering 153% increase in the average fees charged by the Ethereum network in just 30 days. Moreover, even the median-sized protocol fees on the network have experienced a significant upswing, soaring 157% higher from $2.13 per transfer on the first of April to the current rate of 0.003 ether or $5.49 per median-sized transaction. The upsurge in transaction fees on the Ethereum network has been particularly noteworthy since the implementation of the Shapella upgrade on April 12. From that day until April 22, the network processed more than one million transactions daily, with the exception of April 16. Since then, Ethereum’s transaction volumes have remained below the million mark, averaging between 800,000 and 900,000 transactions per day. Amid the increase in fees over the past 30 days, the cost of certain transactions on the Ethereum network remains relatively high, with an Opensea sale incurring $9.93 per transfer, and a trade on Uniswap costing $25.58 per transaction. Sending an ERC20 token, on the other hand, requires $7.50 per transaction. Interestingly, since the implementation of the Shapella hard fork, the Ethereum network layer two (L2) scaling solution, Arbitrum, has been surpassing the network’s transactions on a daily basis. According to data collected from Dune Analytics, Arbitrum has processed between 1.1 million to 1.5 million transactions per day since Shapella, while the L2 competitor Optimism has recorded between 240,000 to 550,000 transactions per day since the Ethereum upgrade. Moreover, the average transaction fee on Arbitrum stands at $0.368 per transfer, while the average fee on Optimism is slightly higher at $0.682 per transaction. Over the course of the last 14 days, ethereum’s (ETH) market worth has tumbled by 12.7% against the U.S. dollar. However, the second-largest digital asset in terms of market capitalization remains 1.4% higher than it was in the previous 30-day period. At present, ETH’s market value stands at $222.7 billion, accounting for a substantial 18.097% of the cryptocurrency economy’s total value, which amounts to $1.23 trillion on May 1, 2023. What are your thoughts on the recent surge in Ethereum network fees? Share your opinions and insights in the comments section below. View the full article

PRESS RELEASE. The rise of AI-generated art has created ethical concerns and challenges within the art community, as many artists perceive these tools as undermining their skills and exploiting their work for profit. Paysenger, a groundbreaking blockchain-based collaboration platform for content creators, fans, and brands, is poised to tackle these issues with its native token, EGO, and AI integration. Paysenger introduces a personalized AI model that allows artists to create unique, AI-generated art in their distinctive style. This exclusive, artist-specific AI model uses the artist’s social account for validation and access. By combining personalized AI models, blockchain technology, and NFTs, Passenger aims to revolutionize the art world and foster new opportunities for artists and brands alike. Paysenger’s cutting-edge technology and proprietary AI have been developed in collaboration with Dr. Tamay Aykut, formerly a visiting assistant professor at Stanford. The company also collaborates with Polygon and ConsenSys, a prominent blockchain software company, further solidifying its position in the industry. Despite the skepticism surrounding AI projects and the hype they generate, Paysenger stands out as a project backed by substantial investments and focused on addressing real-world challenges. Projects with such foundations are expected to yield impressive results, capturing a significant market share in the long run. The platform’s native token, EGO, not only serves as a medium for users to interact with their favorite creators and support their work but also provides an incentive for users to perform targeted actions like content publication, paid communication, and purchasing content from creators. As Paysenger continues to develop its ecosystem, the EGO token is poised to become an essential component of the Paysenger platform. In addition to addressing the ethical concerns surrounding AI-generated art, Paysenger offers a wide range of features for content creators, including AI-generated chat, photo generation, and content requests. These features, combined with the platform’s commitment to fostering a thriving creative community, make Paysenger an appealing choice for those interested in blockchain-based projects with real-world impact. Paysenger’s success in bridging the gap between Web2 and Web3 technologies and its potential for mass adoption of blockchain technologies present a strong case for the value of its native token, EGO. As the platform continues to grow and expand its offerings, EGO is set to become an integral part of this innovative ecosystem. On May 25th, Paysenger is scheduled to launch its Initial DEX Offering (IDO), marking a significant milestone for the company. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

Litecoin fell below the $90.00 level on Monday, as sentiment in cryptocurrency markets remained mostly bearish. The global market cap is down 1.87% at the time of writing, which seems to be a result of the upcoming Federal Reserve interest rate decision. Solana was also in the red today. Litecoin (LTC) Litecoin (LTC) was down for a second straight session on Monday, as markets prepared for the upcoming United States Federal Reserve policy decision. LTC/USD dropped to low at $86.83 earlier in today’s session, which comes 24 hours after trading at a high of $91.39. Today’s drop in price has pushed litecoin to its weakest point since last Wednesday, when the token was at a low of $84.21. Looking at the chart, Monday’s move came as the relative strength index (RSI) fell to a support level at 44.00. At the time of writing, the index is tracking at 44.80, with an upcoming ceiling of 50.00 a potential target for bulls. Should this point be hit, there is a strong possibility that LTC will move back above the $90.00 mark. Solana (SOL) In addition to litecoin, solana (SOL) was another notable mover on Monday, as the token fell for a third consecutive day. Following a high of $23.93 on Sunday, SOL/USD slipped to a bottom of $22.05 earlier in the day. This bearish spell started after bulls were unable to force a breakout beyond a ceiling at the $24.00 mark. One of the catalysts for this was the RSI, which also failed to surge past a key resistance level at 55.00 As of writing, price strength is tracking at 48.58, with the next visible floor at the 45.00 zone. Register your email here to get weekly price analysis updates sent to your inbox: Will solana fall below $20.00 this week? Let us know your thoughts in the comments. View the full article

Charlie Munger, the vice chairman of Berkshire Hathaway, stated in a recent interview that American banks are burdened with poor-quality commercial real estate loans. His comments arrive amid the collapse of three major U.S. banks and the expected seizure of First Republic Bank by the federal government. Despite the potential challenges, Munger emphasized that the current situation is not as severe as the 2008 financial crisis, stating that “it’s not nearly as bad as it was in 2008.” U.S. Banks Saddled With Poor-Quality Commercial Real Estate Loans, According to Charlie Munger’s Latest Interview The renowned investor and vice chairman of Berkshire Hathaway, Charlie Munger, spoke to the Financial Times (FT) in an interview published on April 30, 2023, where he discussed potential issues facing the U.S. banking system. During the previous financial crisis, Berkshire Hathaway provided capital injections to Bank of America and Goldman Sachs. However, the FT interview noted that the conglomerate holding company has not made any comparable moves amid recent events, including the failures of Silicon Valley and Signature Bank last month. “Berkshire has made some bank investments that worked out very well for us,” Munger stated. “We’ve had some disappointment in banks, too. It’s not that damned easy to run a bank intelligently, there are a lot of temptations to do the wrong thing,” the investor added. The 99-year-old American businessman discussed some of the challenges facing financial institutions today. Munger specifically highlighted the amount of commercial property currently held by U.S. banks. According to sources, American banks hold nearly $1.5 trillion in debt, which is due by the end of 2025. The decreasing value of this property has raised concerns, compounded by the ten consecutive federal funds rate increases since last year. “A lot of real estate isn’t so good any more,” Munger remarked. The Berkshire vice chair added: We have a lot of troubled office buildings, a lot of troubled shopping centres, a lot of troubled other properties. There’s a lot of agony out there. ​​Following the publication of Munger’s interview, Jim Bianco, the president of Bianco Research, tweeted about the investor’s remarks. Bianco stated that “Buffett is the GOAT largely because he has invested in banks for over 50 years. No one understands them better. So, I have noted his absence in all the happenings in the regional banks in the last two months. He is not investing, and, to me, this speaks volumes.” Bianco added: Munger may have said the reason why. Loan quality is a critical factor for American banks, alongside undercapitalization and the inability to meet obligations. If a bank makes too many bad loans, it can end up losing a significant amount of money, similar to what happened during the 2008 financial crisis. Nevertheless, during his interview with FT, Munger expressed optimism that the economy’s current troubles will not be as severe as they were back then. “It’s not nearly as bad as it was in 2008,” Munger said. “But trouble happens to banking just like trouble happens everywhere else. In the good times, you get into bad habits . . . When bad times come they lose too much.” What do you make of Charlie Munger’s remarks about the state of U.S. banks and their exposure to poor-quality commercial real estate loans? Share your thoughts about this subject in the comments section below. View the full article

On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) seized First Republic Bank, placing it into Federal Deposit Insurance Corporation (FDIC) receivership. According to reports, this move came after the bank’s financial troubles made it insolvent and unable to meet its obligations. Following the seizure, JPMorgan Chase submitted the winning bid to assume control of First Republic Bank’s deposits, including uninsured deposits. California Regulator Seizes First Republic, JPMorgan Takes Over Bank’s Assets From the first week of March, four major banks — Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank — have failed. The failures of the latter three banks are said to be the largest in American history, since the collapse of Washington Mutual (Wamu) in 2008. Last week, all eyes were on First Republic Bank as it made a last-ditch effort to receive assistance from the private sector. This came after customers withdrew $100 billion from the bank last month, which led to concerns over the bank’s solvency. On Monday, May 1, the California Department of Financial Protection and Innovation (DFPI) announced that it had seized First Republic Bank and placed it under the control of the Federal Deposit Insurance Corporation (FDIC). “The DFPI took action pursuant to California Financial Code section 592, subdivisions (b) and (c), specifically ‘conducting its business in an unsafe or unsound manner’ and being in a ‘condition that … is unsafe or unsound’ to transact banking business,” the California regulator detailed. In addition, the financial regulator announced that JPMorgan Chase, a banking giant, has been awarded the bid for First Republic Bank following its placement into receivership under the Federal Deposit Insurance Corporation (FDIC). On Monday, JPMorgan Chase announced in a press release that it had taken over First Republic Bank. The bank highlighted its “significant strength and execution capabilities” and stated that it was committed to supporting the U.S. financial system. As part of the purchase, JPMorgan Chase has assumed responsibility for all deposits, including those that were uninsured. The move is expected to bring stability and assurance to customers who had deposits with First Republic Bank. JPMorgan Chase has also revealed that the bank will be operated by Marianne Lake and Jennifer Piepszak, two of its community banking executives. Since the fall of Wamu, the collapse of First Republic Bank is now the second-largest bank failure in the United States. In terms of the size of insolvency, it is followed by the collapses of Silicon Valley Bank and Signature Bank. On Monday, JPMorgan Chase announced that it would be hosting a conference to discuss the transaction at 8:30 a.m. Eastern Time. The takeover by JPMorgan Chase is expected to bring about changes in the banking landscape, given that it is the largest bank in the United States. What do you think the collapse of several major banks, including First Republic Bank, means for the future of the U.S. financial system? Share your thoughts in the comments section below. View the full article

Bitcoin started the week trading in the red, as markets prepared for an important week of U.S. economic events. On Wednesday, the Federal Reserve is expected to increase rates by 25 basis points, with nonfarm payrolls for April being released this coming Friday. Ethereum was also lower in today’s session. Bitcoin Bitcoin (BTC) continued to trade lower on Monday, as markets remained in consolidation ahead of a pivotal week of economic events. Following a high of $29,952.03 on Sunday, BTC/USD slipped to an intraday low of $28,360.50 earlier today. This move saw bitcoin briefly fall below a key support point at $28,500, hitting its lowest point since April 27 in the process. Bitcoin chart by TradingView Overall, bitcoin remains nearly 4% higher than at the same point last week, when prices were close to the $27,000 mark. As a result of today’s sell-off, the relative strength index (RSI) has dropped to a floor of its own at 50.00. The index is now tracking at 50.09, with BTC rebounding from its earlier low, and currently trading at $28,591.66. Ethereum In addition to BTC, ethereum (ETH) was also in the red, as prices plunged for a second consecutive session. ETH/USD dropped to a bottom at $1,829.41 earlier in the day, less than 24 hours after trading at a peak of $1,938.42. Similar to BTC, today’s slippage sent ethereum below its own point of support at the $1,830 level. Ethereum chart by TradingView ETH has since rebounded from this floor, as bulls opted to buy the dip, rather than continuing to flee positions. This was helped by the fact that the RSI here also collided with a support zone at 45.00, and it continues to track beyond this point. Bulls will likely be targeting reentry above $1,900 in upcoming days. Register your email here to get weekly price analysis updates sent to your inbox: Will ethereum climb back above $2,000 following this week’s events? Leave your thoughts in the comments below. View the full article