WEEK OF JULY 31, 2023
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Important Prices
What’s Moving The Markets?
Fed Raises Interest Rates
Following the first pause on interest rate hikes in months at the last meeting, the Fed has elected to raise interest rates by 25 bps this month in an effort to continue its fight against inflation.
Semiconductor Supply Glut Eases
Chipmakers are optimistic about the end of a semiconductor supply glut suggesting that the oversupply issue is easing. However, the outlook for demand from customers outside the generative AI industry remains uncertain.
Meta Profits From AI
Meta shares jumped on Thursday after the company provided a positive revenue forecast, indicating that AI is playing a significant role in increasing user engagement and advertising sales, even in an uncertain economic environment.
Eye Scans For Crypto
Crypto project “Worldcoin”, founded by OpenAI’s CEO, launched its WLD token this week and has received immense traction after it was launched with people already starting to line up to get their eyeballs scanned for their Worldcoin crypto digital ID.
Regulatory Crypto Bill Approved
The bill approved by the House Financial Services Committee aims to establish clear criteria for categorizing crypto assets as either securities or commodities, seeks to enhance the CFTC regulatory authority over the crypto industry, and provide more clarity on the jurisdiction of the SEC.
China’s CBDC Gaining Traction
China’s digital yuan transactions surpassed 1.8 trillion yuan ($249.33 billion USD), a substantial increase compared to the previous year’s transactions of over 100 billion yuan ($13,989 billion USD). This milestone reinforces China’s leadership in CBDC development despite still being in its early stages of adoption.
S&P Outlook
Bull Case:Bulls need to continue defending pivot at 4551.50. In order to break through supply, price must trade and hold above 4638.25 with next heavy supply until 4705.50.
Bear Case: Bears defended supply at 4615 but need to continue holding price below 4638.25 and break below pivot at 4551.50. Not much support until around 4495 if broken.
EARNINGS RELEASE CALENDAR
FOR WEEK OF JULY 31st
Expert Insights & Predictions
Having immersed myself in the realm of cryptocurrencies for a substantial span of six years, my well-founded belief aligns with the resurgence of the bullish market in the year 2025. However, it is noteworthy that the latter half of 2024 shall witness a captivating period, marked by the intriguing consequences of the BTC halving event, which should harmonize intriguingly with an anticipated shift in the Federal Reserve’s monetary policies.
NFTs are the most illiquid assets in crypto so they’re the ones suffering during this low liquidity environment, and they’ll probably be last to rally next cycle. It’ll probably be BTC > ETH > top 50 > mid caps > everything else > NFTs. Short term I think we’ve already seen the bottom in crypto and NFTs seem to be bottoming now as well. I’m getting my positions ready for the next cycle.
Taking a look at $BTC:
BTC implied volatility has just hit new yearly lows. However, typically after an extended period of volatility compression we experience rapid expansion. Spring is done. A jump across the creek is next. A Monthly Close above this level would likely be bullish for $BTC. A big move is brewing… — @3orovik
Economic Data Calendar
