Gate.io Blog Daily Flash | US CBDC Reports Due This Week On Biden Order, The Fed Intends To Keep Rates High, Cardano Fork Set After Ethereum Merge

Daily Flash | US CBDC Reports Due This Week On Biden Order, The Fed Intends To Keep Rates High, Cardano Fork Set After Ethereum Merge

29 August 15:28

Today's Headline - Most of the responses to Joe Biden's crypto executive order are due this week: The Block Report

Biden’s executive order addresses the white house’s plan for assessing the implementation of a central bank digital currencies (CBDC) and rooting out illegal activity.

Per the March 9 order, seven reports from agencies are due to the White House 120 days after the release of the order, putting their deadline at September 5, the day after Labor Day, a US federal holiday.

Some responses to the Executive Order have already been submitted. Two from the Department of Justice and from the Treasury, in particular, were focused on the international angle.

The order emphasizes the need for interagency cooperation between agencies, as broken down below:

The Treasury: A report on a central bank digital currency with a particular interest in cooperation with the Federal Reserve. CBDCs have become a surprisingly contentious topic in Washington since the release of the Executive Order.

The Office of Science and Technology: A technical analysis of the difficulty and likelihood of implementing a CBDC.

The Justice Department: A legal assessment of whether Congress needs to put out new law in order to issue a CBDC — which Republicans have adamantly insisted is the case.

The Treasury and the major markets and consumer protections regulators: a report on the risks and rewards of digital assets in markets and payments.

Office of Science and Technology Policy: a report on crypto’s role in energy transitions across timespans. The issue is controversial, with crypto critics frequently pointing to proof-of-work mining as an inexcusable waste of electricity. Crypto stakeholders say PoW can monetize the development of renewable energy sources.

The Justice Department, with the help of the Treasury and the Department of Homeland Security: The role of law enforcement agencies in “detecting, investigating, and prosecuting criminal activity related to digital assets.” The Department of Justice’s FBI, the Treasury’s IRS-Criminal Investigations, and the Department of Homeland Security have spearheaded the bulk of major cryptocurrency investigations federally.

Commerce Department: A framework for enhancing United States economic competitiveness in, and leveraging of, digital asset technologies.

Chart of the Day - BTC monthly returns chart: Coinglass Analytics

Bitcoin risks worst August since 2015 as hodlers brace for 'Septembear'.

September means average 5.9% BTC price losses, historically speaking.

As of this writing,
Bitcoin (BTC) is changing hands at around $19,819, down 0.64% in the past 24 hours,
while Ether (ETH) is trading at $1,450, or down 2.2% during the same period.

Most major altcoins are trading in the red,
with Cardano (ADA) down by 2.37%,
Solana (SOL) -2.76%,
Polkadot (DOT) -0.97%,
Avalanche (AVAX) -8.35%,
and Cosmos (ATOM) -6.17%.

Notable gainers include:
DeXe (DEXE) at $3.77 (+41.25%),
Chrono.Tech (TIME) at $64.56 (+23.30%),
Ultra (UOS) at $0.397 (+17.87%).

Notable losers include:
Santos FC Fan Token (SANTOS) at $12.80 (-11.14%),
Trader Joe (JOE) at $0.222 (-10.62%),
Alpine F1 Team Fan Token (ALPINE) at $3.70(-10.64%).

On Friday, Federal Reserve Chair Jerome Powell said interest rates may continue to rise in order to tame inflation, leading to a broader market sell-off.

“These are the unfortunate costs of reducing inflation,” Powell said at the Fed’s annual economic conference in Jackson Hole, adding that failing to restore price stability would mean “greater pain” for U.S. households.

Following his remarks, both stock and crypto markets reacted brutally; the Dow, Nasdaq, and S&P 500 each closed down more than 3% on Friday. A 75-basis point hike is expected when the Fed meets next month, according to Insider.

Bitcoin (BTC) was down by more than 6.14% on Friday and continued to extend losses way into the weekend, ending on a daily candle of $19,556 (-9.32%) on Sunday. Ether (ETH) was trading at $1,426 by Sunday’s last daily candle, or -15.84% during the same period.

In terms of technical outlook as of this writing on Monday, BTC closed below its monthly support level of $19,858, which forms a support zone with the daily support level of $18,975, reinforced by the 127.2% - 141.4% Fibonacci extension levels measured from Aug. 13 - 19.

The bears will likely attempt to bring the price below the aforementioned support zone towards the $18,431 weekly support level, and if the bulls fail to show buying interest at this level, the decline of BTC could accelerate and reach the low of Jun. 18 ($17,624). The next support level below this price is the psychological level of $16,000.

Ether (ETH), as of this writing, shows resilience above the monthly support level of $1,428.57. As mentioned on Friday’s technical outlook, the 38.2% Fibonacci level ($1,500) measured from Apr. 3 - Jun. 18 forms a strong support zone with a monthly support level of $1,428.

However, the bears will likely attempt to push the price below this zone towards the next Fibonacci level of 23.6% ($1,225) measured from Apr. 3 - Jun. 18, which is sandwiched between and reinforced by the 161.8% Fibonacci extension level ($1,210) measured from Aug. 14 - 20 and the weekly support level of $1,254.

Influencer of the Day - Charles Hoskinson: Vasil Hard Fork is set for September

In a new video update, Hoskinson says that major crypto exchanges are currently working on the new Cardano hard fork, and he expects more to follow.

He added that Cardano developers are making steady progress and that the hard fork should go through at some point in September.

“Things are moving along very quickly. Extensive testing are still being done by the community and still by us. A lot of integration work is happening behind the scenes, so all of that infrastructure is looking good. Hopefully, we should be able to work with the community and get a hard fork date set soon. We’re going to have a meeting with the SPOs here in a little bit…

So sometime in September is what it looks like, unless something is discovered or we run into a substantial slowdown somewhere.”

Buzzes of Yesterday - #Uniswap Discussing How To Implement NFT Financing, #SEC Seeks Info From Grayscale About Three Potential “Securities”, #India Officials Investigate CoinSwitch Over FX Violations

DeFi

Sui blockchain creator Mysten Labs suffers Discord hack

SushiSwap reduces proposed salary for its 'Head Chef' role after community pushback

Voyager extends deadline for bids to September 6

Cloud Host Hetzner of 10% of Ethereum Nodes Prohibits Crypto Usage

Crypto Lending Platform Compound Rolls Out Fresh Upgrade ‘Comet’ for DeFi Users

Antpool Won't Maintain Client Assets on Ethereum After the Merge Amid 'Risk of Censorship’

NFTs & Metaverse

Solana Now Has a Beer—With DeGods, Okay Bears and Other NFTs on the Can

Uniswap in Talks with 7 NFT Lending Protocols for NFT Financialization

Business & Finance

Horizon VR software VP Vivek Sharma is leaving Meta

Governments & Policies

India’s Financial Watchdog Investigates CoinSwitch Offices Over Alleged Forex Violations

SEC Seeks Info from Grayscale about Three Crypto Trusts Being Potential ‘Securities’: Zcash (ZEC), Stellar Lumens (XLM), Horizen (ZEN)

Singapore seeks crypto company details ahead of possible regulatory changes

Afghan Authorities Shut Down at Least 16 Crypto Exchanges

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice.
Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced.
In all other cases, legal action will be taken due to copyright infringement.

ETH/USDT + 1.77%

BTC/USDT + 0.80%

SOL/USDT + 1.34%

ADA/USDT + 10.28%

UNI/USDT -2.77%

SUSHI/USDT -3.11%

GT/USDT -0.75%

SANTOS/USDT + 0.79%

VGX/USDT -3.23%

COMP/USDT -0.02%

JOE/USDT + 3.25%

ALPINE/USDT -0.65%

UOS/USDT -1.24%

DEXE/USDT + 0.44%

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