Headline
▌Fed keeps interest rate unchanged, in line with market expectations
The Federal Reserve Board of the United States announced its latest interest rate decision on June 12, local time, maintaining the target range of the federal funds rate at 5.25% to 5.50%, in line with market expectations. In addition, according to the dot plot released by the Federal Reserve, among the 19 officials, four officials believe that there should be no interest rate cut in 2024, seven officials believe that there will be one interest rate cut, and eight officials believe that there will be two interest rate cuts.
▌Federal Reserve dot plot: only one interest rate cut is expected in 2024
The Federal Reserve dot plot shows that the federal funds rate is expected to be 5.1% at the end of 2024, and 4.6% in March; the federal funds rate is expected to be 4.1% at the end of 2025, and 3.9% in March; the federal funds rate is expected to be 3.1% at the end of 2026, and 3.1% in March; the long-term federal funds rate is expected to be 2.8%, and 2.6% in March.
Market
As of press time, according to Coingecko data:
BTC's latest transaction price is $68219.04, with a daily increase or decrease of +1.4%;
ETH's latest transaction price is $3559.45, with a daily increase or decrease of +1.7%;
BNB's latest transaction price is $619.10, with a daily increase or decrease of +2.9%；
SOL's latest transaction price is 155.03 US dollars, with a daily increase or decrease of +3.8%；
DOGE's latest transaction price is 0.1462 US dollars, with a daily increase or decrease of +5.9%；
XPR's latest transaction price is 0.4916 US dollars, with a daily increase or decrease of +2.4%。
Policy
▌Fed Policy Statement: Slight Further Progress Toward 2% Inflation Target
Fed Policy Statement said that there was "slight further progress" toward the 2% inflation target (the May 1 statement said "lack of progress"); it is expected that it will be inappropriate to cut interest rates before there is greater confidence that inflation will continue to move toward 2%; the economy continues to expand steadily, job growth remains strong, and the unemployment rate remains low; holdings of Treasury bonds and mortgage-backed securities (MBS) will continue to be reduced.
▌Powell: Confidence that inflation has slowed enough to cut interest rates has not yet increased, and it will take longer to cut interest rates
Fed Chairman Powell said that more recent inflation data has slowed; more good data is needed to boost confidence in the anti-inflation process; continue to pay close attention to inflation risks; so far this year, our confidence that inflation has slowed enough to cut interest rates has not increased.
Powell said that the U.S. economy has made significant progress in employment and inflation; inflation has eased significantly, but it is still too high; economic activity has expanded at a steady pace; the Fed generally expects GDP growth to slow from last year; the pace of job growth remains strong, but slower than in the first quarter; the FOMC expects the labor market to continue to be strong.
Powell said that the major factor in changing the forecast of the interest rate path is inflation; the inflation process stagnated in the first quarter, which means that it will take longer to cut interest rates; the timing of the interest rate cut has been delayed due to the slowdown in inflation progress; we must let the data light the way forward; today's inflation report is better than almost everyone expected; the FOMC began to believe that interest rates will not return to pre-epidemic levels.
Powell said that the entire interest rate path is important, not just the first rate cut; the first rate cut is crucial to the economy; the timing of the rate cut is an important decision for the economy.
▌Terraform Labs agrees to pay $4.47 billion in fines to the US SEC
Terraform Labs has reached a settlement with the US Securities and Exchange Commission (SEC) and agreed to pay a $4.47 billion fine to the SEC. The SEC submitted a "proposed final consent judgment" on Wednesday, asking Judge Jed Rakoff of the Southern District Court of New York to approve the plan. According to the proposed judgment, Terraform will be required to recover $3.58 billion in illegal gains and pay a civil penalty of $420 million, and its co-founder Do Kwon will be prohibited from serving as an executive or director of a public company. The SEC said Do Kwon must also pay $204 million to compensate damaged investors. According to previous news, on April 5, a New York jury ruled that Terraform and Do Kwon were suspected of deceiving investors in the sales statements of TerraUSD (UST), Luna and wLUNA. The SEC then filed a motion to recover $5.3 billion in illegal gains and civil penalties. At the end of May, Terraform and its co-founder Do Kwon "reached a settlement in principle" with the SEC.
Blockchain Applications
▌PYUSD has been launched on the Injective network
The Injective network has integrated Paypal's stablecoin PYUSD, becoming one of the first L1s to support stablecoins released by PayPal and Paxos. Users can transfer PYUSD from Ethereum and Solana to Injective, and dApps on the network can use PYUSD for fast payments, transactions, DeFi, etc.
▌Aethir launches decentralized cloud computing network on Ethereum
According to a press release, the blockchain project Aethir is launching its decentralized cloud computing network on the Ethereum mainnet, which aims to find underutilized graphics processing units (GPUs) for intensive tasks such as AI model training and gaming. The project recently raised $120 million in a node sale.
▌Figure Launches Blockchain Private Loan Marketplace Figure Connect
Figure Technology Solutions launches Figure Connect, a blockchain-based private credit marketplace designed to improve market liquidity through standardized sales terms and documents. The platform allows investors to commit funds before loans are issued, and uses blockchain technology to achieve greater transparency and immutability, reducing repeated third-party audits.
Currently, Figure Connect has two loan originators, The Loan Store and Movement Mortgage, and two loan buyers, Bayview Asset Management and Saluda Grade. Figure plans to create a TBA market similar to the Fannie Mae and Freddie Mac mortgage markets, improving liquidity and lowering interest rates through standardization and guarantees.
Mike Cagney, Chairman and Founder of Figure, is preparing for the IPO of Figure Technology Services and serves as CEO of Figure Markets, an upcoming cryptocurrency and securities exchange.
▌Chainlink CCIP Protocol Now Live on Gnosis
Chainlink’s CCIP interoperability protocol and automation services are now live on the Gnosis network. Gnosis users can use Chainlink to implement cloud computing functions and offload heavy computing tasks to the Chainlink network while reducing gas fees by up to 90%.
Cryptocurrency
▌Trump: Bitcoin mining is the “last line of defense” against CBDC
Former US President Trump posted on Truth Social, calling Bitcoin mining the “last line of defense” against central bank digital currencies (CBDCs) and emphasizing that Bitcoin should be mined in the United States. Bitcoin mining stocks generally rose on Wednesday after the remarks were made.
TeraWulf shares rose nearly 20% to $4.13 before retreating to $3.96, about 14% above the previous day's close. MicroStrategy and Hive Digital Technologies stocks rose about 7% and 8%, respectively, and Iris Energy rose about 3%.
▌Biden campaign in talks to accept cryptocurrency donations through Coinbase Commerce
U.S. President Joe Biden's campaign is in discussions with cryptocurrency industry players to accept cryptocurrency donations through Coinbase Commerce, according to people familiar with the matter. Coinbase Commerce, a payment service that allows merchants to accept dozens of cryptocurrencies, has already provided crypto donations to Republican candidate Donald Trump's campaign, which began accepting digital currency donations last month.
The discussions are the latest effort by the Biden campaign to explore how to win over cryptocurrency supporters before the election, according to anonymous sources. One source said the Biden team may be seeking to obtain sponsorship through well-funded cryptocurrency supporters. A source who works with politicians and crypto industry leaders said: "They are looking at the problems in the crypto industry and trying to find quick wins to show that they support the industry and they want to show that they are not the enemy."
▌Yesterday IBIT trading volume exceeded $1 billion
According to HODL15Capital monitoring, data from the US spot Bitcoin ETF yesterday (June 12) showed that Grayscale GBTC had no inflows or outflows.
In addition, yesterday IBIT's trading volume exceeded $1 billion.
▌CryptoQuant: Bitcoin transfers from mining pools to exchanges this week reached the highest level in two months
According to CryptoQuant's report, transfers from Bitcoin (BTC) mining pools to exchanges this week reached the highest level in two months as BTC hovered around $70,000. Bitcoin halving has led to a decline in daily mining revenue, and miners hope to sell Bitcoin through over-the-counter (OTC) platforms to make a profit. On June 10, miners sold at least 1,200 Bitcoins, the highest daily trading volume in two months. Since the beginning of June, Marathon Digital has sold 1,400 Bitcoins worth $98 million. The report added that miners' daily revenue is $35 million, down 55% from the peak of $78 million in March.
▌io.net market value exceeds $500 million, hitting a record high
According to the latest data, as io.net (IO) rises, its market value has exceeded $500 million, currently reaching $539,750,385, a record high. In addition, IO's trading volume in the past 24 hours reached $1,744,035,412 billion, and the current fully diluted market value FDV has exceeded $2.8 billion, reaching $2,840,791,499.
Important Economic Dynamics
▌JPMorgan Chase: There are risks to the expectation of the Fed's first rate cut in September
JPMorgan Chase economists said that Wednesday's consumer inflation report and the Fed's meeting increased the risk that the first rate cut would be in September, but their baseline forecast is still a rate cut in November. "Overall, although the median of the dot plot this year was slightly unexpected, our view on the Fed this afternoon is not much different," Michael Feroli, chief U.S. economist at JPMorgan Chase, wrote in a report. "We continue to believe that the first rate cut will be in November, and after this morning, the risk may be more inclined to September rather than December."
▌The probability of the Fed keeping interest rates unchanged in August is 91.1%
According to CME's "Fed Watch", the probability of the Fed keeping interest rates unchanged in August is 91.1%, the probability of a 25 basis point rate cut is 8.8%, and the probability of a 50 basis point rate cut is 0.1%. The probability of the Fed keeping interest rates unchanged by September is 38.3%, the probability of a cumulative 25 basis point rate cut is 56.6%, and the probability of a cumulative 50 basis point rate cut is 5.1%.
▌Fidelity International: The Fed may not cut interest rates this year
Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, emphasized his basic forecast of no rate cut this year. "If inflation continues to make progress over the summer, or if the labor market starts to show some signs of stress, we do think the odds of a rate cut this year are rising," the analyst said. "Nevertheless, the U.S. economy remains resilient, and today's inflation data is affected by auto insurance and airfare sub-items, which means the threshold for initiating rate cuts remains high."
▌Nasdaq and S&P 500 both hit record highs
The Federal Reserve kept interest rates unchanged for the seventh consecutive time, and Powell said it was not yet time to announce a date for a rate cut. The three major U.S. stock indexes closed mixed, with the Nasdaq up 1.53%, the S&P 500 up 0.85%, and the Dow down 0.09%. Among them, the Nasdaq and S&P 500 both hit record highs. Most large technology stocks rose, with Tesla and Nvidia up more than 3%, and Apple up more than 2%, continuing to hit new highs. It once rose more than 6% during the session, with a total market value exceeding Microsoft; Microsoft rose more than 1%, Netflix, Google, and Meta rose slightly; Amazon and Intel fell slightly.
Golden Encyclopedia
▌What is Validiums
Validiums is a Layer 2 scaling solution designed to optimize Ethereum's performance by processing transactions off-chain. Vailidiums is primarily responsible for reducing the load on the Ethereum blockchain by processing most transactions off-chain and only sending concise proofs to the mainnet for verification. The off-chain transaction processing method can significantly increase throughput and reduce mainnet congestion, resulting in a more efficient and economical Ethereum experience.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to increase risk awareness.
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