Main Takeaway: Fed To Aggressively Hike Interest Rates
Crypto had a poor weekend, dropping over 4% from Sunday to Monday. Much of the bearish outlook on cryptos is because of macro (as previously reported) and an upcoming rate hike from the US Fed. The markets are anticipating and pricing in 75 bps, however, there have been reports that the Fed is considering a 100 bps (1 fully percentage point move).
This type of hike would put tremendous downward pressure on the markets, so anything 75 and under will be short-term bullish for equities and cryptos. Moreover, gold has sunk to a two-year low, crude has dropped for the third consecutive week, and metals are on the retreat. So investors should be prepared for more downward pressure on risk-on assets.
The World Bank has now jumped on the recession bandwagon by predicting that continued global interest rate hikes may force the global economy into a recession by 2023. With that being said, there’s a lot at stake for the Fed as it prepares its next rate hike move, the second to last one in 2022.
The main takeaway is the crypto bear market is showing no signs of abating, and it could potentially continue for the next few months going into 2023. The markets are likely going to retest June lows in the coming days and weeks.
Key Stories: Do Kwon ‘Not On The Run’
Last week, South Korean officials issued an arrest warrant for Do Kwon for violating South Korean finance laws, however, the Terra founder is reportedly not in Singapore and his current whereabouts are not public.
Today’s Top Gainers
The top five performing coins on Phemex d-o-d are Gods Unchained (GODS/USDT), Chiliz (CHZ/USDT), Alpaca Finance (ALPACA/USDT), Santos FC Fan Token (SANTOS/USDT), and BinaryX (BNX/USDT).