News Updates October 23, 2022
1. Invesco Strategist Warns the Fed Is 'Playing a Dangerous Game' That Could Lead to 'Significant Recession'.
The chief global market strategist at Invesco, a global investment firm with $1.3 trillion under management, has warned that the Federal Reserve is playing “a dangerous game” with its 75-basis-point rate hikes. She noted that the Fed’s action could lead to “a significant recession.”
Invesco’s Chief Strategist on Recession and the Fed’s Efforts to Fight Inflation
Invesco’s chief global market strategist, Kristina Hooper, shared her thoughts about the U.S. economy on Bloomberg’s What Goes Up podcast last week. Invesco is a global independent investment management firm with over $1.3 trillion in assets under management (AUM) as of Sept. 30. The firm employs more than 8,400 people in over 26 countries.
Hooper, who has 21 years of investment industry experience, explained that the stock market has been growing very volatile as the Federal Reserve continues its efforts to fight inflation. She noted that the central bank has indicated that it will not let up until inflation is under control, even if it means trouble for the economy. She added that the Fed may raise interest rates by another 75 basis points at the upcoming Federal Open Market Committee (FOMC) meeting in November, and the same again in December.
The Invesco chief global market strategist cautioned: “75 is the new 25 … When you are raising rates in 75-basis-point increments and you’re not giving any time for it to process through and make its way through into the data, you’re playing a dangerous game.” She concluded:
The more you’re doing it, the more likelihood you create of having a recession — and a significant recession.
2. UAE attracts blockchain firms in Asia, Europe with financing and residency
The United Arab Emirates (UAE) is pulling all strings in its attempt to entice technology firms from Asia and Europe with an array of exciting offers. Part of the Gulf nation’s tools in its arsenal includes speedy business licensing and giving employees attractive residency options.
A total of 300 firms are currently on the radar of the UAE administrators, with Thani Al Zeyoudi, Minister of State for Foreign Trade, noting that nearly 40 companies were in the advanced stages of a possible relocation. Al Zeyoudi told reporters that the government is currently eyeing a timeline of 24 months, with 2024 chosen as a tentative date to achieve its aims.
“The timing was very crucial because what we noticed from the beginning of the year was that many companies would like to move because of inflation, the tighter regulatory environment in many parts of the world, including Asia, especially Singapore and Hong Kong,” said Al Zeyoudi.
Digital asset service providers are already taking advantage of the government’s positive stance to clinch operational approval in the UAE. Binance and Crypto.com are some of the firms to have set up bases in the country, while other firms are using the UAE as their headquarters in the Middle East and North Africa (MENA) region.
3. Bitcoin’s Mining Difficulty Jumps 3.44% Higher Reaching Another Lifetime High.
Bitcoin recorded another mining difficulty rise on Sunday, October 23, 2022, at block height 760,032 rising 3.44% higher. This means that not only is it 3.44% harder to find a bitcoin block subsidy, the network’s mining difficulty has also reached another all-time high (ATH) by tapping 36.84 trillion.
Bitcoin’s Mining Difficulty Adjusts Upwards by 3.44%, Now at 36.84 Trillion
This weekend, Bitcoin’s (BTC) mining difficulty jumped 3.44% higher than the height miners dealt with during the past two weeks or the last 2,016 blocks. The network’s difficulty has reached a lifetime high at 36.84 trillion, following the 3.44% shift on Sunday evening (ET).
The rise on Sunday follows the 13.55% increase Bitcoin’s difficulty recorded on October 10, 2022, at block height 758,016. The 13.55% increase was 2022’s largest Bitcoin difficulty rise, and it took place as BTC’s total hashrate reached an ATH on October 11, 2022, at block height 758,138.
On October 11, the network’s hashrate reached 325.11 exahash per second (EH/s) which equates to three hundred twenty-five quintillion one hundred ten quadrillion hashes per second.
As Bitcoin.com News reported on October 21, the network’s hashrate has been oblivious to the difficulty’s lifetime high and the lower BTC prices, as Bitcoin’s computational power remains stronger than ever.
4. Uptober is Back' - CryptoKaleo's Bitcoin Price Prediction as Monthly Flips Green.
Trader CryptoKaleo tweeted 'Uptober is back' to his half a million followers as the Bitcoin price pumped back over $19,500 today - recovering the weekly and monthly open.
For the majority of October, the monthly candle was red - last week's candle closed in the red, and most of this week has seen the Bitcoin price trade under the weekly open - around $19,250.
As soon as that weekly open was reclaimed, the Bitcoin price spiked up to also reclaim the monthly open - just over $19,400.
CryptoKaleo has been optimistic Bitcoin can recover to the $28,000 - $30,000 level that was lost in June - amid FUD over Celsius being liquidated, the Three Arrows Capital debacle, and more 'crypto contagion' that saw the Bitcoin price crash to a yearly low of $17,500 on June 18th.
On September 4th, @CryptoKaleo tweeted '28K sooner than you think'.
While that Bitcoin price prediction is yet to play out, he has doubled down this week tweeting 'I still believe the bottom is in' based on the last crypto bull run's all time high versus the prior bull cycle ATH.
5. Weekly Market Wrap: Bitcoin Remains Muted Amidst FED Rate Hike Rumors.
Despite seemingly enjoying the air above $19,000, Bitcoin’s price hasn’t moved much as the stuttering global economy continues to spook investors.
Since September 20th, the top cryptocurrency has remained between $18,250 and $20,370, with volatility being further sapped in the past two weeks. This weakness has been mirrored in Ethereum, trading mainly in the $1,340-$1,260 range, with other major altcoins staying largely flat.
Apart from the UK’s sky-high inflation and political uncertainty caused by the untimely resignation of Prime Minister Liz Truss, investors in the U.S. have also had to deal with the anxiety that the Fed is creating. On Friday, the WSJ reported that the Fed was mulling introducing a 75 basis points rate hike in their November meeting and “likely to debate then whether and how to signal plans to approve a smaller increase in December.”
Whereas the report was mainly inferred from past statements by Fed’s chair Jeremy Powell and Governor Christopher Waller, several Fed officials support a 0.75 point since previous rate hikes haven’t brought much progress in combatting inflation.
Even so, the CME FedWatch tool currently shows that 50% of investors expect that the Fed’s Federal Open Market Committee (FOMC) will raise rates by 50 basis points in December to avert a further economic catastrophe as a result of too much tightening.
6. Scam Alert: FTX User Lost $1.26M Through 3Commas API.
FTX claims the API key was leaked, while 3Comma says no leaks occurred on its end.
A crypto trader was taken by surprise after hackers reportedly siphoned more than a million dollars worth of digital assets from his FTX account by exploiting an API connected to the trading account.
According to reports, the FTX user discovered that his account using the 3Commas API, has traded the DMM: Governance (DMG) token more than 5,000 times, leading to the loss of about $1.6 million worth of assets, including Bitcoin, Ether, and FTX tokens.
FTX and 3Commas Deny Leak
3Commas is a crypto trading platform that allows users to build automated trading bots that operate on major exchanges.
The trader said he reached out to FTX and the exchange claimed that the API key of 3Commas was leaked and that similar situations were not isolated cases.
The victim then submitted a police case filing notice to FTX, but the company reportedly took no further action and gave no reply. The crypto exchange also did not freeze any funds involved in the case.
