Bitcoin is less volatile than Netflix, and the Fed may only cut interest rates once this year

Headlines

▌CICC: The Federal Reserve may only cut interest rates once this year in the fourth quarter

CICC research report pointed out that the Federal Reserve The May meeting kept interest rates unchanged, in line with expectations. The monetary policy statement acknowledged that inflation is sticky, and Powell expressed lack of confidence in cutting interest rates, indicating that the Fed's threshold for cutting interest rates has been significantly raised. Powell also rejected the option of raising interest rates and announced that the balance sheet reduction was about to slow down, which relieved the market. Overall, we believe that Powell's guidance this time is relatively reasonable. He did not guide interest rate cuts as before. This is the right approach and a good thing for the market. We maintain our previous judgment that the Fed may only cut interest rates once this year, in the fourth quarter.

▌Fidelity: Bitcoin has been less volatile than Netflix over the past two years

Fidelity Digital Assets Inc. Bitcoin (BTC) has long been viewed as a highly volatile asset, but its volatility is declining and will continue to decline as the cryptocurrency matures, according to a research report. Analyst Zack Wainwright writes that new assets often take time to go through price discovery, mature, and then move into lower volatility. When the United States went off the gold standard in the 1970s, even gold showed high volatility. Bitcoin has shown signs of maturation in its 15 years of existence, with volatility reaching a new yearly low, the report said. Fidelity said Bitcoin has been less volatile than Netflix over the past two years.

Quotes

As of press time, according to Coingecko data:

BTC The recent transaction price was US$59,368.46, with intraday changes +2.97%;

The recent transaction price of ETH was US$3,002.6, with intraday changes +1.71%;

BNB’s recent transaction price was US$563.7, with intraday changes+1.27%;

SOL’s recent transaction price was US$139.52, with an intraday increase or decrease+5.93 %;

DOGE’s recent transaction price was US$0.1337, with intraday changes+ 4.98%;

The recent transaction price of );">+0.28%.

Policy

▌U.S. lawmakers proposed taking action against Iran’s use of cryptocurrency mining to evade sanctions

U.S. participation Congressmen Elizabeth Warren and Angus King have written letters asking the defense and treasury secretaries to take action against cryptocurrency mining in Iran. The letter warned relevant authorities that Iran is relying on digital asset mining as a source of revenue to relieve the pressure of U.S. economic sanctions.

▌The U.S. SEC uses Terraform’s logo in Washington Park as evidence of its entry into the United States

Terraform Labs lawyers refute the U.S. SEC , saying the majority of token sales occurred outside the United States. The SEC cited Terraform's sign at Nationals Park baseball stadium in Washington, D.C., as evidence that the company is seeking to expand into the United States. According to multiple news reports, Terraform signed a cooperation agreement with the American baseball team in February 2022.

Blockchain application

▌LayerZero completes the first phase of network snapshot

LayerZero Labs announced that it has completed the first phase of network snapshot at 11:59:59 PM UTC time on May 1, 2024. LayerZero said it will announce more relevant information soon.

▌Klumi Ventures plans to launch two emerging technology and blockchain investment funds with a total size of US$115 million

According to In an official announcement, Klumi Ventures announced that it has obtained a financial license issued by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), allowing the company to invest in tokens and make equity investments in early-stage Web3 startups. Klumi Ventures is launching two dedicated funds, with a $15 million accredited investor fund that will be used for pre-seed and seed investments to provide early-stage Web3 startups with critical capital and support to realize their vision and effectively scale their operations . The flagship fund is $100 million and is tailored for emerging technology and decentralized industries.

Cryptocurrency

▌Significant fluctuations in Bitcoin may be the result of global market risk appetite A harbinger of broader changes

Bitcoin's plunge has fueled interest among investors who believe its sharp swings could be a harbinger of broader changes in global market risk appetite. After plunging nearly 16% in April, Bitcoin has fallen about 4% in the past two days, its largest monthly decline since the FTX exchange collapsed in November 2022. Some investors look to Bitcoin trading for clues about changing liquidity dynamics that could hit other assets. Bitcoin prices have declined over the past few weeks as the Federal Reserve signaled interest rates would remain higher for longer. The Fed's statement pushed up U.S. bond yields and the U.S. dollar, tightening financial conditions. Charlie Morris, chief investment officer of ByteTree Asset Management, said that Bitcoin is our favorite test indicator. This is a warning of trouble ahead for financial markets, but we can be confident that it will rebound at some point.

▌If Bitcoin can meet the speed of artificial intelligence, it will basically become the native currency of artificial intelligence

Pre-PayPal David Marcus, president and current CEO of Lightspark, shared insights on the convergence of artificial intelligence and Bitcoin during the Microstrategy World 2024 event in Las Vegas. He believes that Bitcoin can eliminate the inefficiencies and friction inherent in fiat currencies and predicts that artificial intelligence agents will adopt this digitally native medium for value exchange. Marcus claims that Europeans will not accept the American version of the theoretical medium through which artificial intelligence agents exchange value, and vice versa. What is the most neutral form of digitally native online currency? It's Bitcoin. Marcus pointed out that if Bitcoin can meet the speed of artificial intelligence, it will basically become the native currency of artificial intelligence.

▌Sovereign wealth funds, pension funds, etc. will enter Bitcoin ETFs in the next few months

Robert Mitchnick, head of digital assets at BlackRock, was interviewed Shi said that in the coming months, financial institutions such as sovereign wealth funds, pension funds and endowment funds may begin to conduct spot ETF transactions. Robert said that many interested companies, whether we are talking about pension funds, endowments, sovereign wealth funds, insurance companies, other asset managers, family offices, are engaged in ongoing due diligence and research dialogue, and BlackRock is It works from an educational perspective.

Important economic developments

▌ The three major U.S. stock indexes collectively closed higher, with large technology stocks generally rising

The three major U.S. stock indexes collectively closed higher, with the Nasdaq rising 1.51% and the S&P 500 index rising 0.91 %, and the Dow rose 0.85%. Large technology stocks generally rose, with Nvidia and Amazon rising by more than 3%, Netflix and Apple rising by more than 2%, Google rising by more than 1%, and Microsoft, Meta, Intel, and Tesla rising slightly.

▌The probability that the Federal Reserve will keep interest rates unchanged in June is 85.7%

According to CME "Fed Watch", the Federal Reserve 6 The probability of keeping interest rates unchanged is 85.7%, and the probability of cutting interest rates by 25 basis points is 14.3%. The probability that the Fed will keep interest rates unchanged until August is 65.4%, the probability of a cumulative 25 basis point interest rate cut is 31.3%, and the probability of a cumulative 50 basis point interest rate cut is 3.4%.

Golden Encyclopedia

▌What isEthereum Futures ETF?

The Ethereum Futures ETF is an investment fund that tracks Ethereum futures contracts rather than Ethereum itself. In 2021, Canada launched its first Ethereum futures ETFs. While futures-based ETFs have been approved, the U.S. Securities and Exchange Commission (SEC) has yet to approve a spot Ethereum ETF in the country. The asset manager oversees the Ethereum futures ETF. The main issuers offering Ethereum futures ETFs are Bitwise, VanEck, and ProShares. These firms handle the complex issues involved in purchasing and disposing of futures contracts, controlling rollovers to preserve exposure, and ensuring that ETFs comply with legal requirements.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and not as actual investment advice. Please establish a correct investment philosophy and be sure to increase your risk awareness.