Binance’s chief executive has shared his company’s future direction and areas of focus following its settlement with U.S. authorities, including the Department of Justice (DOJ). “We have moved past that as the company move into greater maturity,” he insisted, adding that the crypto firm is focusing on “sustainability.” ‘The Direction of Travel Is Very Clear’ […]
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The Central Bank of Russia and the Russian treasury are considering testing using the Russian CBDC, the digital ruble, to complete budget settlements. The tests would involve using this CBDC to make payments to businesses and citizens and receiving payments from these in CBDC, to ensure the targeted use of these funds. Russian Digital Ruble […]
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As Bitcoin’s network halving event draws near, Glassnode’s latest report sheds light on the evolving trading strategies in the face of significant demand from ETFs, signaling a pivotal shift in the cryptocurrency market. Glassnode Report Unveils Shift in Bitcoin Trading Strategies Ahead of Halving In the countdown to Bitcoin’s much-anticipated halving, the crypto community is […]
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Ethereum co-founder Vitalik Buterin also raised concern regarding the concentration of Ethereum’s liquid staking providers.
In his recent blog post, Ethereum co-founder Vitalik Buterin shared his opinion on adding some protocols to the Ethereum blockchain code. He also touched upon the most important part which is the concentration of liquid staking service providers.
Vitalik Buterin discussed several Ethereum protocols, including the account abstraction protocol ERC-4337, ZK-EVMs, private mempools, code precompiles, and liquid staking. He expressed stronger support for “enshrining” some of these protocols, such as ERC-4337, in Ethereum’s code, while he had reservations about others like private mempools. However, he acknowledged that each protocol presents a complex tradeoff that will continue to evolve over time.
Buterin also raised concerns about the concentration of Ethereum’s liquid staking providers. Notably, Lido currently controls over 32% of staked ether, albeit across different validators. Buterin highlighted that both Lido and Rocket Pool, two major providers, carry different risks and have some safety measures in place, though these might not be sufficient.
Rather than relying solely on “moralistic pressure” to promote a more diverse set of staking providers, Buterin contemplated potential protocol changes aimed at further decentralizing liquid staking. These changes could involve adjusting RocketPool’s approach or granting additional governance powers to a randomly selected committee of small stakers.
In the last 24 hours, the Ethereum (ETH) price has gained more than 3.5% shooting all the way to the $1,750 level. The price move comes ahead of the launch of Ethereum futures ETFs and $1,750 serves as a key resistance level for Ethereum.
Ethereum faces major resistance at $1,800, and a successful breakthrough could pave the way for further gains toward $1,850 and $1,920, potentially even reaching $2,000. On the downside, if Ethereum fails to surpass the $1,750 resistance, it may initiate a corrective move.
Initial support lies around the $1,710 level, with a more critical support at $1,680. Additionally, the 76.4% Fibonacci retracement level from the recent rally, positioned near $1,685, offers support. A breach below $1,685 might test the $1,650 support, potentially triggering a bearish trend towards the $1,600 level.
As per the schedule and plans, the Ethereum futures ETF from Bitwise is likely to go live later today, October 2. As of a September 27 note, there are 15 Ether futures ETFs from nine different issuers awaiting approval. These issuers include well-known names like VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill.
The analysts assessing the situation have assigned a 90% likelihood of Ether futures ETFs launching in October. Among these offerings, Valkyrie’s Bitcoin futures product, with Bitcoin trading at approximately $28,308, is expected to be the first to include exposure to Ether starting on October 3.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The robust growth of the U.S. economy may necessitate additional interest rate increases to mitigate inflationary pressures, according to Federal Reserve Chair Jerome Powell.
Speaking at the Jackson Hole Economic Symposium, an annual conference of central bankers in Jackson Hole, Wyo., Powell outlined the uncertainties surrounding the economic outlook while indicating the possible need for further restrictive monetary policies, as reported by the Associated Press.
Despite inflation having declined from its peak, Powell maintained that it remains excessively high. He further emphasized that the Federal Reserve remains watchful for signs that the economy is not decelerating as predicted. The central bank is poised to escalate rates further, if necessary, and plans to maintain a restrictive policy level until it sees substantial evidence of sustained inflation reduction towards their 2% target.
As Powell noted, the economy has been expanding at an unexpected pace, coupled with consistent consumer spending, potentially sustaining high inflation pressures. This observation marks a significant departure from his statements in the previous year, where he explicitly warned of continued sharp rate hikes by the Fed to curb soaring prices.
The Fed’s rate hikes have resulted in significantly increased loan rates, making it challenging for Americans to afford homes or cars and for businesses to finance expansions. Despite this—and contrary projections—the U.S. unemployment rate remained steady at 3.5%, barely above a half-century low. The persistent inflation and robust employment figures underscore Powell’s concern about the rapid economic growth, indicating a potential need for higher interest rates to act as a restriction.
Contrary to expectations earlier in the year, most traders now foresee no interest rate cuts before mid-2024 at the earliest. According to Powell, the central bank’s policymakers believe their key rate is sufficiently high to restrain the economy and cool growth, hiring, and inflation. However, he acknowledged the difficulty in determining the necessary borrowing costs to slow the economy, resulting in constant uncertainty regarding the effectiveness of the Fed’s policies in reducing inflation.
While traders and economists have shown increased optimism for a “soft landing”—the Fed achieving its target inflation rate without inducing a steep recession—others remain skeptical.