Main Takeaway: Stable Weekend For Crypto
Crypto experienced a steady weekend with no new monumental news and FUD directly targeting and impacting the crypto markets. However, there’s a little bit of spillover and a hangover from last week’s hacks to Solana and Nomad, but these hacks were minimal in comparison to the Ronin hack, which is the largest in DeFi history. The markets are up 2% d-o-d with the larger coins such as Avalanche, Chainlink, BNB, and Solana doing well.
Key Stories: Inflation Reduction Act Passes The Senate
The Senate led by Chuck Schumer of NY (D) passed on Sunday another ‘stimulus’ bill called the Inflation Reduction Act (IRA) as a part of President Biden’s Build Back Better (BBB) agenda. The IRA is a watered-down version of BBB that contains provisions related to climate change, healthcare, energy, and tax.
The main takeaway is this bill may in fact not bring down inflation that is currently impacting many across the world, and in the United States in particular. Interestingly, stimulus packages put into law by the US and EU were factors that contributed to cryptocurrency’s breakout from 2020-2021, so this could potentially serve as another catalyst that brings back the narrative as Bitcoin and cryptos as a hedge against inflation. However, we’ll get more details once the final version passes (if they do pass) since the bill still needs to get through the House and be signed by Biden.