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\n
\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

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Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

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Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

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Follow The Distributed

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\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 5 6 7 8 9

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Signs of cooler inflation would probably support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. On the other side, the Fed will not hesitate to raise rates again if inflation data surprised strongly to the upside.<\/p>\n\n\n\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

However, a core measure that strips out volatile food and energy prices remained flat every month in April. Still, the U.S. Labor Department also reported that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year.<\/p>\n\n\n\n

Signs of cooler inflation would probably support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. On the other side, the Fed will not hesitate to raise rates again if inflation data surprised strongly to the upside.<\/p>\n\n\n\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\"\"<\/figure>\n\n\n\n

However, a core measure that strips out volatile food and energy prices remained flat every month in April. Still, the U.S. Labor Department also reported that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year.<\/p>\n\n\n\n

Signs of cooler inflation would probably support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. On the other side, the Fed will not hesitate to raise rates again if inflation data surprised strongly to the upside.<\/p>\n\n\n\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The U.S. Bureau of Labor Statistics will release its May inflation report next Tuesday, and the latest report showed that the Consumer Price Index (CPI), which measures prices that urban consumers pay for a basket of goods and services, slipped to 4.9% in April from 5.0% in March. The CPI reading has cooled considerably since peeking out around 9% in June 2022, which suggests that the Fed's campaign to quell inflation is working.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

However, a core measure that strips out volatile food and energy prices remained flat every month in April. Still, the U.S. Labor Department also reported that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year.<\/p>\n\n\n\n

Signs of cooler inflation would probably support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. On the other side, the Fed will not hesitate to raise rates again if inflation data surprised strongly to the upside.<\/p>\n\n\n\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

U.S. Inflation data and Federal Reserve policy meeting will be at the centre of attention in June 2023, and according to estimates, consumer prices are likely to have cooled slightly on a month-over-month basis in May. Still, core prices are expected to have remained sticky.<\/p>\n\n\n\n

The U.S. Bureau of Labor Statistics will release its May inflation report next Tuesday, and the latest report showed that the Consumer Price Index (CPI), which measures prices that urban consumers pay for a basket of goods and services, slipped to 4.9% in April from 5.0% in March. The CPI reading has cooled considerably since peeking out around 9% in June 2022, which suggests that the Fed's campaign to quell inflation is working.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

However, a core measure that strips out volatile food and energy prices remained flat every month in April. Still, the U.S. Labor Department also reported that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year.<\/p>\n\n\n\n

Signs of cooler inflation would probably support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. On the other side, the Fed will not hesitate to raise rates again if inflation data surprised strongly to the upside.<\/p>\n\n\n\n

CME Group's Fedwatch tool reported<\/a> that the market is currently pricing a 76% chance that the U.S. central bank will keep rates unchanged at its June 13-14 meeting; however, there are 50% odds of another 25-basis-point rate hike in July. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. However, strong jobs data signalled that the Fed's monetary tightening is still not cooling the world's largest economy enough.<\/p>\n\n\n\n

The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006 year and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, added:<\/p>\n\n\n\n

\"U.S. stocks rallied last week on hopes that the U.S. central bank could skip an interest rate hike this month, while investors welcomed a Washington deal that avoided a catastrophic debt default. The market is on pause now until we get to the Fed meeting and the inflation data.\"<\/em><\/p>\n","post_title":"US Inflation Data And Federal Reserve Policy Meeting Is The Center Of Attention For June 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-inflation-data-and-federal-reserve-policy-meeting-is-the-center-of-attention-for-june-2023","to_ping":"","pinged":"","post_modified":"2023-06-08 22:34:35","post_modified_gmt":"2023-06-08 12:34:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11918","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11820,"post_author":"14","post_date":"2023-05-31 16:32:32","post_date_gmt":"2023-05-31 06:32:32","post_content":"\n

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling, which is a near-term positive for financial markets. Michael James, managing director at Wedbush Securities, said there's certainly an exhale of relief that something has been done. However, Congress must still approve a package to avoid a U.S. default.<\/p>\n\n\n\n

However, some analysts are warning that a negative consequence of the deal may be that investors who had held off on transferring bank deposits to money funds on concerns about a default may now make a move, which could have negative implications for the economy. Brian Reynolds, chief market strategist at Reynolds Strategy, said<\/a>:<\/p>\n\n\n\n

\"Investors have been pulling bank deposits on concerns about the resilience of the regional banking system after Silicon Valley Bank collapsed, and the debt ceiling agreement may make it worse. As money market funds now are largely limited to investing in T-Bills and Fed repo, the shift away from deposits means less lending for consumers and businesses.\"<\/em><\/p>\n\n\n\n

Brian Reynolds may have it right, but it is important to remember that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses. Economists and analysts expect Congress to approve a package to avoid a U.S. default. Still, they also said that we could see a meaningful slowdown in economic growth and a weakening of the labour market in the United States.<\/p>\n\n\n\n

The jobs report on Friday is the next big test that could show if the economy is still resilient as higher rates crimp company credit lines. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (especially on hiring).<\/p>\n\n\n\n

The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Debt Ceiling Deal Is A Huge Relief; Investors Shift Focus To The U.S. Jobs Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"debt-ceiling-deal-is-a-huge-relief-investors-shift-focus-to-the-u-s-jobs-report","to_ping":"","pinged":"","post_modified":"2023-05-31 16:32:35","post_modified_gmt":"2023-05-31 06:32:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11820","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11787,"post_author":"14","post_date":"2023-05-18 15:14:45","post_date_gmt":"2023-05-18 05:14:45","post_content":"\n

The ongoing debt ceiling negotiations in Washington continue to make investors nervous, especially after U.S. Treasury Secretary Janet Yellen expressed concerns that a default on government debt could leave millions of Americans without income payments, potentially triggering a recession that could destroy many American jobs and businesses.<\/p>\n\n\n\n

President Joe Biden and House of Representatives Speaker Kevin McCarthy met this week to discuss out details of an agreement to raise the U.S. debt ceiling to avoid a catastrophic default in the face of a looming deadline. Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, added<\/a>:<\/p>\n\n\n\n

\"There is a question of whether there's enough time to get a full deal done rather than a temporary extension, but it doesn't mean they can't come to an agreement in a few weeks. It's just the timeline is more compressed this time, and these negotiations play out in the public sphere, and that leads to increased volatility until we get to an agreement.\"<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to the latest news,\u00a0 President Joe Biden and Kevin McCarthy progressed in talks to determine whether to increase the U.S. debt limit. At the same time, a White House spokesperson said this Wednesday that President Biden would continue to hold talks with congressional leaders on the nation's debt limit later this week.<\/p>\n\n\n\n

Regional banking fears, tough Fed talk, and rhetoric over the debt ceiling from politicians will continue to influence the financial markets in the weeks ahead. The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and the U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to weigh on economic activity.<\/p>\n\n\n\n

Higher interest rates encourage saving over spending and make the debt more costly, and recent comments from Fed officials suggested they are not ready to cut rates soon. At the same time, disappointing earnings forecasts from Home Depot and U.S. retail sales data for April have pointed to softer consumer spending. It is important to mention that government data showed recently that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period.<\/p>\n\n\n\n

There are currently too much important things that could easily go wrong, and I would not be surprised to see a big sell-off in financial markets if something goes wrong. The upside potential for stocks and cryptocurrencies probably remains limited for the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n","post_title":"Ongoing Debt Ceiling Negotiations In Washington; Weak Corporate Results Dampened Investor Risk Appetite. What's Expected In The Coming Weeks?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ongoing-debt-ceiling-negotiations-in-washington-weak-corporate-results-dampened-investor-risk-appetite-whats-expected-in-the-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-05-18 15:14:48","post_modified_gmt":"2023-05-18 05:14:48","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11787","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11673,"post_author":"14","post_date":"2023-05-13 00:31:08","post_date_gmt":"2023-05-12 14:31:08","post_content":"\n

The U.S Bureau of Labor Statistics reported this Wednesday that Consumer Price Index (CPI) rose 0.4% month-on-month (m\/m) in April, meeting the consensus forecast, while the 12-month change slipped to 4.9% \u2013 down from 5.0% in March. It is important to mention that increases in shelter, gasoline, and used vehicles pushed the index higher and were offset somewhat by declines in prices for fuel oil, new vehicles, and food at home.<\/p>\n\n\n\n

The CPI reading has cooled considerably since peeking out around 9% in June 2022, and Wednesday's report suggests that the Fed's campaign to quell inflation is working. Starting in March 2022, the U.S. Federal Reserve has enacted ten consecutive interest rate increases totalling five percentage points. Financial markets reacted positively to the news that showed the prices urban consumers pay for a basket of goods and services are cooling down.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A core measure that strips out volatile food and energy prices remained flat at 0.4% on a monthly basis, but of the six grocery store indexes the Bureau of Labor Statistics uses to compute food prices, four showed declines. Milk, for instance, fell 2%, the most significant monthly drop since February 2015. Egg prices, one of the biggest gainers in the food index over the past year, fell 1.5%, taking the annual gain down to 21.4%.<\/p>\n\n\n\n

Another positive news is that the Labor Department reported this Thursday that the Producer Price Index cooled more than expected in April. Producer Prices Index measures the prices U.S. companies get for their goods and services at the figurative factory door shed an encouraging 0.3 percentage point to 3.4% year-on-year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, added<\/a>:<\/p>\n\n\n\n

\"For the second day in a row, we have good inflation data \u2013 both the CPI and PPI continue to come down \u2013 which should give the Fed the room it needs to take a pause at the next meeting.\"<\/em><\/p>\n\n\n\n

Signs of cooler inflation could support a rate pause in June, but investors should keep in mind that inflation remains far above the Fed's target, and the path to 2% will be bumpy. Oxford Economics Lead U.S. Economist Oren Klachkin said<\/a>:<\/p>\n\n\n\n

\"We think the Fed will maintain a hawkish bias through year-end and won't hesitate to raise rates again if inflation and the labor market data surprise strongly to the upside.\"<\/em><\/p>\n\n\n\n

The federal funds rate is now from 5% to 5.25%, the highest level since 2006, and economists are worried that the high-interest rates will push the economy into a recession. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n","post_title":"Inflation Eases To 4.9% In April; The Path To 2% Will Be Bumpy","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"inflation-eases-to-4-9-in-april-the-path-to-2-will-be-bumpy","to_ping":"","pinged":"","post_modified":"2023-05-13 00:31:16","post_modified_gmt":"2023-05-12 14:31:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11673","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11491,"post_author":"14","post_date":"2023-05-04 21:53:10","post_date_gmt":"2023-05-04 11:53:10","post_content":"\n

As widely expected, the U.S. Central Bank raised interest rates by 25bps this Wednesday. It signalled it could pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political stand-off over the U.S. debt ceiling and monitor the course of inflation. The federal funds rate is now in a range of 5% to 5.25%, which is the highest level since 2006. <\/p>\n\n\n\n

The U.S. Central Bank warned that tighter credit conditions for households and businesses are expected to affect economic activity. In the picture below, we can see that even without this rise in interest rates, the federal funds rate was at the highest level since the 2007 financial crisis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Many analysts and economists are worried that the high-interest rates will push the economy into a recession. It is important to mention that government data showed last week that economic growth in the first quarter slowed sequentially, with real gross domestic product increasing at a 1.1% annual pace, compared with a 2.6% gain in the prior three-month period. With higher interest rates, companies need to spend more money to borrow money to invest in growth. Historically, higher rates lead companies to reduce spending (especially on hiring). <\/p>\n\n\n\n

Many companies could face liquidity problems, and economist David Rosenberg has warned that the U.S. economy is facing two big risks. David Rosenberg said<\/a>:<\/p>\n\n\n\n

\"We have a possible debt default on our hands and a spreading bank crisis. The banking turmoil that started with Silicon Valley Bank's collapse in March remains unresolved, and First Republic's failure and takeover by CEO Jamie Dimon's JPMorgan has reignited worries about broader financial instability. Moreover, political disagreement about raising the U.S. government's borrowing limit is fanning fears of a debt-ceiling crisis.\"<\/em><\/p>\n\n\n\n

See Related: <\/em><\/strong>United States May Fund Its Deficit By Printing More Money; Could Default By June 1st<\/a><\/p>\n\n\n\n

Higher rates encourage saving over spending and make the debt more costly. Companies with bigger credit or other loans with variable interest rates could be in a difficult situation. We expect to see a meaningful slowdown in economic growth and a weakening of the labour market in the United States in the upcoming months. <\/p>\n\n\n\n

At the same time, Brian Jacobsen, chief economist at Annex Wealth Management, said<\/a> that the manufacturing and housing sectors are in a recession already. The famous investor Jeremy Grantham warned that the U.S. stock market could experience significant losses soon, and a recommendation is that investors should continue to take a defensive investment approach.<\/p>\n\n\n\n

Stocks aren't the only assets that could significantly lose their value. Investors should remember that cryptocurrencies could also be in the situation to make an even bigger fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Bitcoin Is Close To Testing $30,000 Again; Ethereum Revives Bullish Momentum Above $1,800<\/a><\/p>\n","post_title":"The Fed Raises Interest Rates By 25 BPS This Wednesday; Effects On Crypto And Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-fed-raises-interest-rates-by-25-bps-this-wednesday-effects-on-crypto-and-financial-markets","to_ping":"","pinged":"","post_modified":"2023-05-04 22:08:47","post_modified_gmt":"2023-05-04 12:08:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11491","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11197,"post_author":"14","post_date":"2023-04-27 10:52:23","post_date_gmt":"2023-04-27 00:52:23","post_content":"\n

U.S. stocks have primarily held steady through the start of the earnings season on stronger-than-expected results from big banks, but investors will continue to observe a host of earnings from mega-cap companies over the next two weeks.<\/p>\n\n\n\n

It is important to say that of the 90 S&P 500 companies that have reported first-quarter results so far, more than 75% of them have topped analysts' estimates. According to the latest Refinitiv IBES data, earnings forecasts have improved, and analysts expect a quarterly profit contraction of 4.7% compared with a 5.1% decline estimated at the start of April.<\/p>\n\n\n\n

Microsoft, Visa, Alphabet (Google), Boing, Meta Platforms, Mastercard, Caterpillar, Activision Blizzard, Amazon, Gilead Sciences, Intel, Pinterest, Chevron, and Exxon Mobil are among the companies scheduled to report quarterly results this trading week. A positive performance among many of these stocks has supported Wall Street this year, so investors are worried about whether the gains can continue given the gloomy economic outlook.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Alphabet, Microsoft Corp, Amazon, and Meta Platforms constitute more than 14% of the value of the benchmark S&P 500, and investors will watch guidance carefully from these companies to determine if inflation will crimp profit margins or if costs can be passed through. Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and if earnings results fall short of expectations, the stock market's reaction could be severe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"It's a make or break week for (tech) stocks; if earnings don't disappoint, then the market can continue to rally.\"<\/em><\/p>\n\n\n\n

In the days ahead, the U.S. stock market will also be hypersensitive to any FED comments, while money market traders are currently pricing in a 92% chance that the U.S. central bank will raise rates by 25 basis points next month. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006, and with higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates negatively influenced on companies' earnings.<\/p>\n\n\n\n

The latest economic data, including retail sales, industrial production, and consumer sentiment, probably cemented this expectation, and important data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence data.<\/p>\n","post_title":"U.S. Stocks Have Held Steady At The Start Of The Earnings Season; What To Expect In Coming Weeks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-have-held-steady-at-the-start-of-the-earnings-season-what-to-expect-in-coming-weeks","to_ping":"","pinged":"","post_modified":"2023-04-27 12:05:28","post_modified_gmt":"2023-04-27 02:05:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11197","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11038,"post_author":"14","post_date":"2023-04-19 14:28:51","post_date_gmt":"2023-04-19 04:28:51","post_content":"\n

Investors continue to watch carefully comments from Federal Reserve officials that could give more insight into the path of interest rates, but it is important to say that the U.S. central bank is widely seen raising rates by 25 basis points next month. The latest economic data, including retail sales, industrial production, and consumer sentiment, cemented this expectation, and according to analysts, the U.S. economy still has some vibrancy, which gives the Fed cover to continue its rate hike policy in May.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At last glance, financial markets have priced in an 80% likelihood of that happening, and it is still not sure when the central bank would pause its monetary policy tightening. Because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession, and according to the famous investor Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months. The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since the 2006 year, and a recommendation is that investors should continue to take a defensive investment approach in the upcoming weeks.<\/p>\n\n\n\n

Corporate profits are emerging as the big driver of what the market is likely to do in the near term, and according to Refinitiv IBES data, S&P 500 company earnings are expected to have declined 4.8% in the first quarter compared with the same period last year. The second quarter could be an even worst story, and Steven Blitz, a chief U.S. economist at TS Lombard, said<\/a> that he expects negative growth in Q2, with recession to start by mid-year.<\/p>\n\n\n\n

The recent collapse of Silicon Valley Bank was partly triggered by losses on its bond holdings as interest rates jumped and prices of U.S. government debt fell. Jeremy Grantham warned that the turmoil that swept through the banking sector last month is just the beginning. Jeremy Grantham made his name predicting the dot-com crash in 2000 and the financial crisis in 2008, and he is now warning<\/a>:<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

\"Another epic bubble in financial markets is bursting. The best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.\"<\/em><\/p>\n\n\n\n

Cryptocurrencies, Bonds, Real Estate Are Collateral<\/h2>\n\n\n\n

Stocks aren't the only assets that significantly lost value when expensive money scared investors to avoid risks. The prices of government bonds and real estate were also shot down, and cryptocurrencies will not certainly be in the situation to escape a fall. The crypto market displayed a high correlation with U.S. equities. If a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well.<\/p>\n\n\n\n

To put it short, if we see turmoil in the traditional financial markets, all other markets will feel turbulence.<\/p>\n","post_title":"U.S. Central Bank Raising Rates By 25 BPS In May; Repercussions On Financial Markets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-raising-rates-by-25-bps-in-may-repercussions-on-financial-markets","to_ping":"","pinged":"","post_modified":"2023-04-19 14:30:22","post_modified_gmt":"2023-04-19 04:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11038","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10659,"post_author":"14","post_date":"2023-03-31 16:49:51","post_date_gmt":"2023-03-31 05:49:51","post_content":"\n

Bitcoin price hit a 7-day low on March 27 at $26,670 after the United States Commodity Futures Trading Commission (CFTC) presented a lawsuit against Binance and its CEO Changpeng Zhao. The lawsuit alleges that Binance offered derivatives to U.S. customers without a license, and according to some analysts, the U.S.-based regulators have decided to finally lay down the hammer on unregulated crypto service providers.<\/p>\n\n\n\n

The lawsuit against the crypto sector's largest exchange spooked investors, and it is still not sure if this is just a short-term correction or a beginning of a new bearish leg. According to Mike Brusov, co-founder at the asset management firm Cindicator, the allegations still need to be proven as further evidence remains to be investigated. Mike Brusov added<\/a>:<\/p>\n\n\n\n

\"Binance is registered in other areas of the world other than the U.S., making us confident that their doors will remain open regardless of the results of the current lawsuit. The crypto market may experience a drawdown in light of this news, but should then recover as the defense proves out their case.\"<\/em><\/p>\n\n\n\n

At the same time, the ongoing concerns over the Federal Reserve's policy path also negatively influence the Bitcoin and cryptocurrency market. The U.S. Central Bank raised interest rates again this month despite the current banking crisis and confirmed that it remains committed to bringing inflation back down to its 2 percent goal and to keeping longer-term inflation expectations well anchored.<\/p>\n\n\n\n

According to the latest data from Glassnode Alerts, the number of exchange deposits (7d MA) just reached a 1-month low of 2,259.821 for Bitcoin (BTC). The number of addresses sending to exchanges (7d MA) reached a 5-month low of 4,203.250 this week, and it is important to mention that a previous 5-month low of 4,211.625 was observed on October 28 2022.<\/p>\n\n\n\n

In a period from October 28 2022 to November 21 2022, Bitcoin has lost more than 20%, but potential investors should consider that this is not a rule that can be applied every time. If Bitcoin's important support levels at $25,000 fail to hold, a further drop toward the $23,000 level could be possible.<\/p>\n\n\n\n

See Related:<\/strong><\/em> CFTC Investigates Binance Over Insider Trading Allegations<\/a><\/p>\n\n\n\n

Technical Analysis Of Bitcoin (BTC)<\/h2>\n\n\n\n

Bitcoin has weakened from $28,998 to $26,670 since March 23, and the current price stands at $27,332. The price has also moved below the 10-day moving average, indicating that Bitcoin could fall even more in the upcoming days.<\/p>\n\n\n\n

\"Technical<\/figure>\n\n\n\n

If buyers cannot restore the rate shortly, there are high chances to see a further decline to the support level at $25,000, and if the price breaks this level, we could see Bitcoin at $23,000 or even below. The important resistance level for Bitcoin stands at $30,000, and if the price advances above this level, the next target could be $32,000 or even $35,000.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n","post_title":"Bitcoin Price Targets Under Pressure As CFTC Files A Lawsuit Against Binance","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bitcoin-price-targets-under-pressure-as-cftc-files-a-lawsuit-against-binance","to_ping":"","pinged":"","post_modified":"2023-04-10 16:52:12","post_modified_gmt":"2023-04-10 06:52:12","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10533,"post_author":"14","post_date":"2023-03-23 00:27:19","post_date_gmt":"2023-03-22 13:27:19","post_content":"\n

According to the latest data from Glassnode Alerts, the number of addresses receiving from exchanges just reached a 3-month high of 2,059.357 for Ethereum (ETH). The previous 3-month high of 2,058.631 was observed on Dec. 20, 2022; since that date, Ethereum has advanced more than 40%, but potential investors should consider that this is not a rule that can be applied every time. Some of the biggest whales in existence are moving millions of dollars worth of Ethereum from exchanges, and this could be connected with a fear that the current banking crisis may cause a domino effect that could negatively influence major cryptocurrency exchanges.<\/p>\n\n\n\n

Edward Moya, the analyst at OANDA, said that recent developments around Silvergate Bank bring risks of further negative effects in the industry. Many crypto firms could experience liquidity problems, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-off in the crypto market.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Signature Bank Closed By New York Regulators; Another Big Blow to Crypto Investors<\/a><\/p>\n\n\n\n

On the other side, market data shows the number of destroyed Ethereum (ETH) coins has reached a staggering 66,000 ETH in the first three months of 2023, worth approximately $118 million at the current price of $1,992 per coin. With the present burn rate, an estimated 614,000 Ethereum will be removed from circulation annually, significantly reducing the overall supply. This could play a crucial role in the future and potentially drive the price of Ethereum higher.<\/p>\n\n\n\n

Technical Analysis Of Ethereum (ETH)<\/h2>\n\n\n\n

Ethereum has advanced from $1,369 to $1,846 since Mar. 10, and the current price stands at $1,792. The price continues to stay above the 10-day moving average, indicating that the positive trend is still not over.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

If sellers cannot restore the rate shortly, there are high chances to see a further advance to the resistance level at $1,900, and if the price breaks this level, we would probably see Ethereum at $2,000. The important support level for Ethereum stands at $1,600, and if the price falls below this level, the next target could be $1,500 or even below.<\/p>\n","post_title":"Alert For Ethereum (ETH) Investors: Number Of Addresses Receiving From Exchanges Reached A 3-Month High","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alert-for-ethereum-eth-investors-number-of-addresses-receiving-from-exchanges-reached-a-3-month-high","to_ping":"","pinged":"","post_modified":"2023-04-10 17:14:54","post_modified_gmt":"2023-04-10 07:14:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10533","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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