Daily News | Fed Signals End of Rate Hike Cycle as US Economy Slows, Bitcoin Remains Steady, SushiSwap Hack Results in $3M in Losses

2023-04-10, 02:48

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## Crypto Daily Digest: <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and Ether in Tight Trading Ranges, SushiSwap Suffers Losses, and GRAIL Set for Major Upgrade

“*TL;DR: <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> is currently being traded at $28,000 with low volatility, thanks to high liquidity on both sides of the price. The S&P 500 is also stagnant and waiting for the Federal Reserve's decision. In the meantime, Ether has dropped in its <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> pair, but experts believe that the upcoming Shanghai hard fork will benefit the coin in the long run. SushiSwap lost over $3.3 million due to an exploit on its exchange services, affecting users who approved SushiSwap contracts in the past four days. Finally, an Arbitrum-based decentralized exchange, Camelot is launching a v2 upgrade to enhance its trading platform's efficiency and user experience.*”

Good morning, traders! Let’s seize this Monday relentlessly and make the most of it! 🚀

<a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) is currently trading at around $28,000, with a narrow trading range and increasing liquidity on either side of the spot price. This liquidity reflects sentiment and may dampen price volatility. Meanwhile, the S&P 500 has also been trading sideways for nine months, and a breakout is expected depending on the Federal Reserve's decisions.

## <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) $28359 (+0.12%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1681094801Untitled0410.png)

The trajectory of 4H appears optimistic, however, there are some crucial resistance areas that must be surpassed before a larger number of retail traders will consider participating in the trend. The first resistance area, which also serves as a supply zone, is located at the peak of April 4th. If there is sufficient trading volume to breach this area, then the next level of interest would be the 29180 mark, which is a previous high on a weekly basis. Conversely, there is a possibility of a false breakout, but this can be negated if BTC closes above the aforementioned resistance zone.

**Overview:**

- **Closest hourly support zone: 28275 - 28183**
- **Closest hourly resistance zone: 28550 - 28775**
- **Key Level: 29180 (4H High Mar. 29)**

<br> **Hourly Resistance zones**

1. 28550 - 28775
2. 28870 - 29180
3. 29450 - 29800

<br> **Hourly Support zones**

1. 28275 - 28183
2. 28123 - 28015
3. 27870 - 27700

<br>Ether (ETH) has experienced a drop of over 7.5% in its <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> pair, but experts believe the long-awaited Shanghai hard fork will be bullish for Ether in the long term. The fractal-based outlook suggests that Ether could reach 0.075 BTC by June, a 10% increase from current levels. Additionally, the ETH/USD pair has rallied by more than 50% in 2023, and Ether could maintain its yearly gains by consolidating inside the $1,800–2,000 range until the Fed decision.

SushiSwap (<a href="/vi/price/sushi-sushi" target="_blank" class="blog_inner_link">Sushi</a>) experienced an exploit on its exchange services, resulting in a loss of over $3.3 million from a single user. This exploit appears to have affected users who approved SushiSwap contracts in the past four days. <a href="/vi/price/sushi-sushi" target="_blank" class="blog_inner_link">Sushi</a> developers confirmed the issue and are working to address it with security teams. SushiSwap head developer Jared Grey has urged users to revoke permissions for all contracts on SushiSwap as a security measure.

Lastly, Arbitrum (ARB)-based decentralized exchange Camelot (GRAIL) is set to launch a v2 upgrade in three phases aimed at improving the efficiency and user experience of its crypto trading platform. Camelot is currently the sixth largest protocol on Arbitrum with over $107.2 million in total value locked.

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### Macro: Fed Signals End of Rate Hike Cycle as US Economy Slows

*“TL;DR: Mostly everyone is still evaluating the US jobs report since last Friday was a US holiday. Anyways, the actual data supported expectations for another Fed rate hike to combat inflation while easing concerns of a US recession. The report showed slight weakness in the labor market, but the unemployment rate dropped to 3.5%. The Federal Reserve is approaching the end of its current cycle of interest rate hikes and may pause or even reverse its rate hikes if the economic situation deteriorates further. The next major data point for the Fed is a report on consumer prices, due on April 12, with officials delivering their policy move on May 3.”*

On Monday, major currencies were stable while US equity futures saw small gains as investors evaluated the US jobs report released on Friday. The report supported expectations for another Federal Reserve rate increase to combat inflation while easing concerns of a US recession. Contracts for the S&P 500 increased by 0.1%, and the dollar's movements were limited to about 0.2% against Group-of-10 currencies early on Monday. Nevertheless, Chinese military drills around Taiwan and Easter holidays in Hong Kong, Australia, and New Zealand are expected to add to caution in Asian markets.

In March, the US jobs market added 236,000 jobs, slightly below the forecast of 239,000. However, the unemployment rate dropped to 3.5%, beating expectations of 3.6%. The February job gain of 311,000 was revised up to 326,000. This data is the final report that the US Federal Reserve will see before deciding whether to continue tightening monetary policy at its May meeting. Following the report's release, <a href="/vi/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s price remained steady at around $28,000. However, the report followed earlier data indicating some weakness in the labor market.

The Federal Reserve, the central bank of the United States, is approaching the end of its current cycle of interest rate hikes. This is a significant shift in monetary policy, as the Fed has steadily raised rates over the past few years to combat inflation and support economic growth. One of the key reasons why the Fed is now considering ending its rate hike cycle is due to signs of slowing economic growth. To address these concerns, the Fed has signaled that it may pause or even reverse its rate hikes if the economic situation deteriorates further. This would be a significant shift in monetary policy, as it would signal that the Fed is willing to prioritize economic growth over inflation.

The next major data point for the Fed is a report on consumer prices, due on April 12, with officials delivering their policy move on May 3. As Chinese military drills and Easter holidays approach, caution is expected to remain in Asian markets, while investors continue to evaluate economic data and anticipate the Fed's policy decisions.

<div class="blog-details-info">
<div>Author:** Peter L. **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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