Tether Restarts Lending Stablecoin to Customers After a Short Pause!
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Tether, the largest stablecoin in the cryptocurrency market, has resumed lending its own stablecoin to customers after a brief pause of less than a year. The move comes as the company received several short-term loan requests from customers with long-term relationships in Q2 2023. Tether aims to prevent its clients from running out of liquidity or being forced to sell their collateral at unfavorable prices. With this move, Tether aims to maintain the stability of its platform and continue to provide reliable services to its customers.
Goldman Sachs Predicts Pause in Interest Rate Hikes, Potentially Boosting Crypto Market
In light of ongoing inflation concerns, Goldman Sachs’ market experts are forecasting the Federal Open Market Committee (FOMC) to momentarily hit the brakes on interest rate hikes this coming September.
Subsequent to this potential pause, rates are anticipated to dip—a shift that could signal a sunnier outlook for stocks, Bitcoin, and the broader cryptocurrency market.
Rate Recalibrations on the Horizon
Leading figures from the bank, such as economists Jan Hatzius and David Mericle, have spotlighted the underlying motivations for these expected adjustments. They discern a compelling drive within financial circles to recalibrate the funds’ rate, making it less prohibitive as inflation inches towards its target mark.
While the Goldman Sachs team is leaning towards the commencement of rate reductions by mid-2024, the Federal Open Market Committee’s forthcoming meeting could spell the end of rate elevations, they said.
By the time committee, members reconvene in November, consensus might be reached that inflation’s rapid ascent has decelerated sufficiently, negating the necessity for further hikes.
Bitcoin’s Potential Windfall
With Bitcoin currently hovering around the $29,300 mark, any change in the monetary policy landscape will undeniably ripple through cryptocurrency waters. Traditionally, a more relaxed interest rate environment tends to favor riskier assets, with cryptocurrencies often seen as prominent beneficiaries. As rates drop, traditional savings and fixed-income assets might appear less enticing, leading investors to hunt for alternatives that promise higher returns.
Bitcoin, recognized as a potential hedge against inflation and market volatility, could witness an influx of fresh investments. When central banks adopt a softer stance on interest rates, it often translates to more liquidity in the market. This surplus liquidity might find its way into assets like Bitcoin, driving its demand and, subsequently, its value by a significant amount.
It is very possible that we would see Bitcoin rally up to the $35k mark if the forecast were to come true. Right now, the crypto market is experiencing a minute downturn with the majority of top 10 coins in the red.
The coming months will be instrumental in determining the trajectory of both interest rates and the influence they wield on assets such as Bitcoin.
Economist Predictions: Federal Reserve Signals Pause on Rate Hikes Amid Debt Ceiling Suspension
On Wednesday, the U.S. House of Representatives managed to secure the backing of both Democrats and Republicans, successfully passing a bill that seeks to temporarily suspend the $31.4 trillion debt ceiling. This legislation removes the borrowing limit of the federal government until January 1, 2025.
With the Federal Reserve nearing its upcoming decision on whether to raise interest rates in June, all attention is now focused on this critical moment. In a recent televised interview on Friday, David Wessel, a respected economist and director of the Hutchins Center on Fiscal & Monetary Policy, offered his insights on monetary policy and the highly anticipated proposal for a rate hike.
Fed Likely to Skip Rate Hike in June
Renowned industry veteran David Wessel recently shared his perspective, suggesting that the Federal Reserve is inclined to skip raising interest rates at the upcoming June meeting. Wessel pointed to several factors to support his belief, including favorable conditions in the labor market, a decline in inflation, and the successful avoidance of a potential default scenario, which could have had severe repercussions on the financial markets.
During the interview, Wessel said, “I think it’s pretty clear the Fed is going to skip rate hikes at the June meeting.”
Further, Wessel emphasized that choosing to maintain the policy rate at the upcoming meeting should not be interpreted as the Federal Reserve reaching the highest point of interest rates in this cycle. Instead, by opting to skip a rate hike, the Committee would have a chance to gather additional data and information before making any further policy decisions.
This viewpoint of Wessel is similar to the one made by Fed Chair Jerome Powell on May 19, where he also indicated his support for pausing rate hikes during the June meeting in order to assess the economic consequences of previous rate adjustments.
Federal Officials Indicate Preference to Pause Rate Hikes
Prominent figures within the Federal Reserve have recently conveyed clear indications of their preference to abstain from raising interest rates at the upcoming central bank meeting. Philadelphia Federal Reserve Bank President Patrick Harker, for instance, expressed his inclination to support a decision to “skip” the interest rate hike in June. Harker, however, noted the potential for his viewpoint to change based on upcoming economic data, showing a willingness to adapt to evolving circumstances.
Over the course of ten consecutive meetings, the Federal Reserve has steadily raised interest rates, resulting in a total increase of 5 percentage points in the benchmark federal funds policy rate. Currently, the rate stands at a range of 5.0% to 5.25%.
However, it seems like the rate hike could pause for sometime.
FTX Will Pause Ethereum Trades for the ETH Merge – Coinpedia – Fintech & Cryptocurreny News Media
The first confirmation of zero downtime elicited mixed reactions from Ethereum developers, with many calling it a “disaster” and arguing that it was the FTX’s responsibility to maintain Ether (ETH) on all blockchains until the September upgrade was complete.
However, the FTX action of suspending Ether deposits and withdraws was to safeguard users from losing their assets during the high-risk fork until the completion of the September upgrade. Arbitrum One, Solana, and Binance Smart Chain will also be temporarily disabled in order to ensure that settlement is clean
‘’As the ETH merger approaches, FTX will temporarily suspend blockchain transactions of secondary chains for ETH to ensure that settlement is clean; the main chain ETH transfers will be available for long.’”
Details: https://t.co/iVUjo4ZqyO
— FTX (@FTX_Official) September 5, 2022
Ethereum developers designed the Merge for a smooth Proof-of-Stake (PoS) transition with zero downtime by considering the total terminal difficulty (TTD). This will ensure that the transition is based on the total mining power used to build up the blockchain. Even though there was an explanation, FTX still chose to suspend “deposits and withdrawals until the merge is over, and the networks are stable.”
The merge set to convert the Ethereum blockchain to proof-of-stake
The Merge upgrade will convert the Ethereum blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, to lower energy usage and provide sharding capabilities.
The deposit and withdrawal suspension on FTX comes as a result of the many potential issues that could have occurred during the merge, any of which could have left users stranded with unusable assets. While some have criticized the decision, others have praised it as a responsible way to protect users during such a high-risk event.
The FTX went on to say that any issues that could have come up because of the merge are not the exchange’s responsibility.”It is your personal responsibility to understand the meaning of this announcement,”
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This Is The Time When Bitcoin And Crypto Will See A Great Pause, Per Abra CEO
The crypto market has now entered the recovery stage with the majority of the cryptocurrencies regaining their key price levels. However, the market is yet to see its bull run.
On the other hand, Abra, a crypto wealth management CEO has a bullish approach to the crypto market.
In an interview with Thinking Crypto, the CEO, Bill Barhydt talks about the Purchasing Managers’ Index (PMI) which suggests the US has either entered or is about to get into a recession.
The Purchasing Managers’ Index (PMI) is nothing but an economic indicator that points toward the well-being of the manufacturing and service sectors.
As per Barhydt’s prediction, the US has been in recession for almost a quarter and a half and claims that the recent price rise that we have witnessed had a deliberate effect on the decreased inflation rate.
Further, he claims that at present we are in recession as most of the indicators that are used to understand recession are not indicating a proper signal to the general public. Hence, he says that the present unrealistic rate increase should stop and be patient and wait for the market’s next move.
According to the CEO, the Great Pause will be seen in October, and the 1st half of 2023 will be a great time for Bitcoin and other crypto.
In order to prove his point, Barhydt claims that these risky assets will see a positive moment as there will be an increase in the money supply with the Fed controlling the increasing interest rates.