FameEX Morning Crypto News Recap | May 4, 2023
US Banking System Deemed Strong and Resilient as Federal Reserve Increases Interest Rate by 25bps
The US Federal Reserve has announced a 25 basis points increase in the federal funds rate, marking the tenth consecutive hike since March 2022. The announcement came as no surprise to the market, with the move reflecting the Fed's intention to gradually normalise interest rates amid a recovering economy.
White House Advocates DAME Tax Plan to Tackle Purported Environmental Impact of Cryptocurrency Mining
The Biden administration has introduced the Digital Asset Mining Energy (DAME) tax as part of the President's budget proposal for fiscal year 2024. The DAME tax aims to hold crypto miners accountable for the environmental costs associated with their activities. The proposal was disclosed in a blog post on May 2, 2023, which elaborated on the need to make miners pay for the costs they impose on others.
Bitcoin Community in Frenzy as BRC20 Token Standard Gains Market Cap of Over $95 Million
The Bitcoin blockchain has recorded over 3.35 million Ordinal inscriptions, while BRC20, an experimental token standard, has gained significant attention with a market capitalization of over $95 million and 10,487 developed tokens. This has created a buzz in the crypto world, as it highlights a growing interest in token standards on the Bitcoin network.
Central Bank and Rating Agency Project Record Profits for Russian Banks in Current Year
The Bank of Russia has raised its profit forecast for Russian banks in 2023, predicting that the results may break the record set in 2021. This follows a challenging year for the sanctioned Russian banking sector, with 2022 being the worst annual period in seven years in terms of financial outcome. The expected high numbers for 2023 indicate a positive trend for the Russian banking industry.
If US Defaults on Debt Obligations, BTC Could Soar by $20,000, Says Standard Chartered Analyst
Standard Chartered's head of forex research, Geoff Kendrick, predicts that a US default on its obligations could result in a $20,000 Bitcoin price surge. Kendrick suggests that while Bitcoin would likely rise in value, other cryptocurrencies, such as Ethereum, could decrease in price. The analyst's forecast highlights the market's tendency to respond to economic and political uncertainties, leading to significant price fluctuations.
First Republic Bank Collapse May Trigger More Bank Failures, Global Repercussions, and Possible Recession, Analysts Warn
The takeover of First Republic Bank, the fourth US bank to fail this year, has raised concerns about the potential impact on the US and international economies. Although President Biden has assured the public that the banking system is secure, analysts warn that this may not be the final bank failure during the current period of turmoil. The event has sparked concerns of potential global repercussions, with fears of a recession looming.
State Regulators Clamp Down on Deceptive Cryptocurrencies Marketed as 'Elon Musk AI Token' and 'TruthGPT Coin'
Several state regulators, including the Texas State Securities Board, have issued cease-and-desist orders against Horatiu Charlie Caragaceanu and his firms, The Shark of Wall Street and Hedge4.ai, for promoting two cryptocurrencies - TruthGPT Coin and Elon Musk AI Token. The orders aim to curb the fraudulent securities scheme that seeks to capitalize on the buzz surrounding artificial intelligence (AI) and prevent consumers from being deceived.
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