The biggest data point for the Fed after payrolls last week will be CPI this Thursday. We will have CPI released at 8:30 am on Thursday, August 10. The prior reading for June was encouraging as headline inflation rose at a 3% annual rate, and the monthly increase in core CPI was 0.2%, the smallest increase since August 2021.
Economists expect a 0.2% increase monthly, the same increase seen in June. Year-over-year growth is forecasted at 3.3%, up from 3% in June. Headline inflation, which is not adjusted for seasonal factors and includes often-volatile food and energy prices, peaked at 9.1% in June 2022. It was running at an 8.5% pace in July of last year.
Core CPI, which strips out more volatile food and energy costs, is expected to come in at 0.2% in July, matching June's figure. The annual core CPI pace is expected to slip to 4.7% from 4.8%. Core CPI peaked at 6.5% in March 2022, and one year ago, in July, the annual level was 5.9%.
This is the first time inflation is expected to rise in a while. It will be interesting to see how the market reacts. Currently, the market has priced in on the inflation side, with stocks slowing down a little on the heat. A certain pullback is expected. Read on for more details.
We are seeing housing prices fall off for a few reasons. With the latest weekly report from Redfin, we can see that median home sale prices peaked a few weeks ago and have started to decline slowly. This is due to seasonality, as families settle in for the coming school year and inventory sells less rapidly. Compared to last year, prices were coming down much faster than this year, leading to the YoY data staying more elevated. Mortgage rates also have remained elevated, leaving home buyers unable to buy homes, which has been part of the price's downward price. Recently, 30-year fixed mortgage rates moved back above 7%. Given the median sales price, a 30-year fixed mortgage at today's rates is going for $2,536/month. We can also see this on the chart below from Redfin, comparatively to the last three years, showing just how unaffordable housing has become.
Due to the ever-increasing costs, starter homes, and buildings have become highly unaffordable. Redfin data shows that the cost of starter homes has increased. Despite the minor correction due to the pullbacks in 2022, we are still moving upwards. Going back four years ago to 2019, the average cost of a starter home was $166,500. Compared to June 2023, average costs have gone up to $243,000, a 46% increase in four years. Those levels of price increases are completely unsustainable in the short run. Because of this and mortgage rates rising, cash payments have seen a near decade-high as paying with cash alleviates buyers from having to pay the high-interest rates. Looking at the five most significant increases for metropolitan areas in income needed to buy a starter home, we see a dramatic change over the past year. The first column shows the average income needed, followed by the median sale price in those cities, the median mortgage payment, and the change in income needed YoY.
Norway reported housing price changes on Thursday of last week. MoM home prices increased by 0.2%, and YoY changed -0.2%, mainly flat.
On Friday, many European countries released their HCOB Construction PMI data and the S&P Global/CIPS Construction PMI for Great Britain. The European Area, France, Italy, and Germany reported falling PMI. All of which were below the forecast. Great Britain, however, posted a PMI of 51.7, beating expectations and the previous reading of 48.9.
On Monday, GB reported the Halifax House Price Index and some construction output from the Czech Republic and Australian data. Housing prices dropped 0.3% MoM and 2.4% YoY for GB. Construction output increased by 1% for the Czech Republic YoY. Building permits plummeted in Australia, falling 7.7% MoM after strong May data. YoY permits fell 18.3% compared to just a 9.8% decrease last month. Private house approvals MoM fell 1.3%, showing that all levels of construction are starting to tail off.
Wednesday
Thursday
Friday
Sunday
Tuesday
With some mixed results from the data releases, we saw movement in the yield curve to reflect sentiment. After the release of the ADP Non-farm Employment Change, which showed more extreme hiring, the yields fluctuated. Back-end yields spiked much higher than initially forecasted after some big selling days in the stock market. Showing that the market demanded a higher yield for these bonds, given the lack of return that might come from the market moving forward. After Friday, the yield curve returned to what was forecasted last week. The only significant difference is the very back-end rates, showing an increase of just below 4.5% for the 20-year.
There has not been much change in the forecast for rate hikes, as the market is still in a reasonably stable area. The forecast for the September meeting shows that the chance of a rate increase is slightly climbing, but for the most part, the probabilities are that we stay flat. The November meeting has the highest chance of seeing a rate hike at 31.1% between the following three meetings remaining for the rest of the year. There is currently a zero percent chance of a rate cut for the rest of the year, so it seems relatively certain we will not pivot until early next year.
For the first time since March 2023, investment-grade bonds for corporations dropped below the support zone. This is due to the rise in yields over the past week, corresponding to a drop in price. Going into the year's second half, bonds continue to struggle, which will only spell more trouble for corporations and banks as their balance sheets will report much higher losses on bonds marked-to-market. The high-yielding bonds also saw a dip down into the support zone that has held prices up for many months. With CPI and PPI coming up, a rise in these numbers could spell a problem for the equities market, resulting in higher yields and lower bond prices as inflation remains in the economy.
We first outlined the bullish setup on the Uranium market and our bull case for our top pick amongst Uranium equities, UEC, in our piece ‘ Decarbonization – Taking a U-Turn?’ back in late June in Hike Time.
The headstock is now +7% since we called it, and we are doubling down on our conviction following the Niger coup that has taken place over the past fortnight, where Niger’s Presidential Guard detained President Mohamed Bazoum and installed their command as the leader of a new military junta. Subsequently, the Presidential Guard forces closed Niger’s borders, suspended state institutions, and declared a curfew.
For those asking what this has to do with the Uranium market and why this has increased our conviction, here is why:
1) Niger is a material producer of Uranium - Niger currently produces 6.0Mlb of Uranium per annum, which equates to ~5% of global supply, with this forecast to grow following the developments of the Madaouela Uranium Project (2.6Mlbs of annual production) and Dasa Uranium Project (3.8Mlbs of annual production)
2) Major supplier of Uranium to the EU - Niger supplies ~15% of France’s uranium needs and accounts for one-fifth of the EU’s total uranium imports. UxC data indicates that EU-based utilities now have less than 100Mlb of inventories, the lowest level since 2005, which we believe positive pricing momentum will continue in the 2H.
3) Increased security risk to push utilities into term contracts - The Niger coup and the perceived increase in security risks in an already charged global geopolitical environment has the potential to drive utilities to contract with lower-risk jurisdictions.
We are already starting the Uranium UxC Long-Term price grind higher to $56/lb, up $2/lb on the prior month. This is important as the industry consensus for the incentive price for Uranium developers like UEC to move into production is in the mid-’60s per pound.
From a TA perspective, we were looking for UEC to break through a key technical level at the 200-day moving average of ~$3.47, with a multi-day close above this level achieved this week, confirming a new intermediate-term uptrend taking hold.
Further supporting this on a weekly view, we have just achieved a weekly close of $3.60, with a multi-week close above the 40-week moving average of ~$3.43, signaling another strong technical positive and reinforcing this view.
Based on the abovementioned fundamentals, we have a high conviction of the price action achieving this, this week.
Trade Ideas:
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Earnings Season continued…
You’ve probably heard of Yeti, the high-end cooler company that has ignited a national trend in drink-chilling machismo. Since its founding in 2006, Yeti has sold hundreds of thousands of premium coolers and insulated cups, generating hundreds of millions in revenue. It has been growing at a staggering pace, however, growth has slowed as of late. The expectation that they will beat these revenue estimates is uncertain. There are too many competitors in this space, from Stanley's 40-ounce tumblers retail for $40 to $50 to Hydroflask, to S’well, to Nalgene. Are people really investing in $350 YETI coolers in this economy?
Expected EPS: $0.46; Expected Revenue: $411.26M
TRADE IDEA: $34 puts expiring 8/18
We had some nasty data from China this early in the week. Exports were expected to be down 9.8%, and they were down 14.5%. Imports were expected to be down 5.6%, and they were down 12.4%. China is struggling right now, and it took the market with it! Alibaba was supposed to break through $100 for a sell-the-rip before earnings, but welcome to trading, it’s never how you want it to play out… especially Chinese names. However, I’ll still roll the dice on Alibaba here if you haven’t got in already. After three years of regulatory scrutiny, optimism is building that Beijing is close to ending its crackdown on tech firms.
Expected EPS: $2.03; Expected Revenue: $34.1b
Trade idea still stands from last newsletter: BABA $110 call expiring 8/18
Deere & Co. engages in the manufacture and distribution of equipment used in agriculture, construction, forestry, and turf care. It operates through the following segments: Agriculture and Turf, Construction and Forestry, and Financial Services. I’m sure you’ve seen one of their trucks in your area. Love the technical setup here as it works back over its 8/21 MAs here. It has a great opportunity to get a run till earnings, especially if it breaks $432.50 with volume, where you can de-risk into August 18th.
Expected EPS: $8.19; Expected Revenue: $14.2b
Trade idea: $450 call expiring 8/18
Stay tuned in the “2.0 Macro & Newsletter Alpha” Telegram chat for more spontaneous calls non-earnings related from Abel.
Crude has remained strong as prices are well above its 50D/100D/200D moving averages after struggling to break through until July. Prices have been in a strong uptrend since Brent broke through $78/bbl mid-July, and fundamentals have helped support this as crude demand remains strong with high runs being called for (need for products) and macro cleaning up short positioning on a recession play.
Note that below is on 30 min candles, so moving averages are not daily.
Two weeks ago marked a significant crude rally, with diesel and gasoline rallying even more than crude as refinery cracks were the big winner. While energy remains supported, this past week served more as consolidation as the market digests the current crude environment and where crude could go from here. Prices are largely flat w/w.
US Stocks
Last week saw a huge crude draw in total US stocks, -17Mb, (one of the largest on record, especially noteworthy not during holidays/end of year/COVID/hurricanes, which often see odd stats seasonally) driven by PADD 3 drawing due to record exports as the U.S. continues to grow its global crude presence. The -15.6Mb PADD 3 crude draw was the largest on record.
Product sentiment was tepid as overall builds (jet + diesel + gasoline) caused the market to worry about demand as the recessionary concerns remain a bearish threat to oil.
Positioning
Positioning data showed that speculators were bullish on oil as the market continued to believe in both crude and products, especially crude and diesel.
Managed money had spent much of this summer interested in gasoline as there were windows of bullishness. Still, as winter approaches, diesel has returned as the focus in addition to being the early play this year as a macro trade. Goldman’s weekly commodities chart pack shows the renewed focus on oil products (off the highs of 2022) compared to 2019-2021.
Below Goldman combines on-land stock changes, seaborne flows, pipe/rail movements, refinery runs, and their view of OPEC scenarios to create a more comprehensive high-frequency view of stocks. Floating storage can shed light into regions that significantly lag (most of Asia and the Middle East, for instance), but is an imperfect barometer as freight rates and arbs can influence floating storage.
Saudi Arabia & Macro
Russia
This week in crypto, we saw BTC test $30,000 and come back lower to the important $28,800-29,000 range we have been talking about for weeks. This was the fourth time BTC had tested this zone on the 4hr time frame. Typically after testing a zone three times, the fourth test will reverse from the zone.
During the first test of $30,000, we saw a break of structure from BTC. We wicked below our zone briefly and bounced from the $28,600 level and tested the upper range at the $30,000 zone.
Last week we mentioned that, amongst the choppy price action, “Something positive to note is that BTC has closed above the lower range of the $28,800-29,000 demand zone. If we can hold this $28,800-29,000 zone, it is still possible that we can rally to test the $30,000 level before potentially heading lower. I want to reiterate that reclaiming $29,000 is bullish.” We bounced from the $28,800 level three times before ultimately reclaiming and bouncing from the $29,000 level to test the upper range at $30,000. It does not seem that shorting $30,000 is a substantial trade, however this can work in the short term if we reject this level on LTF. HTF seems to want to break higher as we test and potentially break this downtrend from $31,800.
During this ping-pong between zones, BTC formed a 12hr bullish engulfing candle upon the bounce from lower to upper range. This was a signal that the 12hr chart would maintain bullishness following consolidation.
Looking at the 4hr chart, BTC also formed a bullish engulfing while bouncing from the lower range at the $29,000 zone. Both the 12hr and 4hr engulfing candles set the tone for this move up to test the upper range once more.
Looking at the weekly chart, BTC also has multiple indecisive weekly candles with large wicks to the upside. We can expect these wicks to be filled as we saw last week’s candle’s wick to the upside be filled.
Looking at the Daily chart we see that Monday’s candle closed as a bullish hammer candle and saw continuation / confirmation to the upside on Tuesday’s candle.
Each of these four timeframes are very important because on each we saw bullish candles form on each time frame. This is likely the start of the next leg higher for BTC, indicated on multiple HTF charts.
$30,000-30,500 remains a crucial level to clear and we can estimate that BTC may have trouble at this level, specifically at the liquidity zone of $30,000 that we had been talking about since we flushed below $30,000.
TLDR: We have now tested this level twice. Bullish target is $30,500-31,000 in the short term. Trend has now flipped as we broke structure, retested and bounced hard.
ETH has been bouncing between the $1810-1825 demand zone and the $1860-1880 liquidity level since the FOMC meeting a few weeks back. This week ETH wicked below the $1810 zone briefly before reclaiming $1825 and bouncing.
This is a positive sign as ETH reclaimed the demand zone we have been watching at the lower range of $1810-1825 that has continued to hold since ETH first tested this level at the end of June. This zone has now been tested about 5 times during this macro consolidation in approximately the $1800-2000 range. Looking ahead, we are watching for ETH to reclaim the $1880-1900 level for a potential move to the mid-1900s, though this will likely take some time should it play out. The 12hr chart also looks to be flipping bullish potentially as we can see two bullish engulfing candles from the lower range that have set the tone. A move above $1880 can ignite this chart as the Head and Shoulders pattern that we had been watching seems to have been completed with price supported at $1810-1825.
Last week we mentioned that “it may be best to wait until we move back towards the $1860-1880 level to re-short if you are not in a position.” We saw a rejection of this level and retrace to lows of $1810.
Something concerning about Tuesday’s price action is that ETH rejected the $1860-1880 level and closed a 4hr shooting star which is bearish. This candlestick is similar to the hammer candle and typically indicates the start of a reversal on the timeframe it occurs on. This leaves us watching the $1825-1840 level for a potential bounce should ETH continue to reject the upper zone. If ETH loses this lower range around $1800 (unlikely) we can still see our initial $1750 target.
Overall, macro is still leaning bullish but short term we can see a pullback towards the $1825-1840 level before heading higher.
Last week we mentioned that "Logically, as crypto flips bullish in the short term, we can expect a move lower in DXY. This leaves potential for DXY to not reach the 103 level and come back to support around 101.5-102." Spot on analysis as DXY did not continue higher to 103 and came back to support at 101.75 which was our target (101.5-102). After hitting this support level DXY moved back up to about equal highs around 102.7 and rejected once more.
It seems as if DXY is going to retest the recent daily head and shoulders breakdown we had mentioned in prior weeks. If DXY can continue higher above 103 to 103.5 we can expect a rejection from this level as this is where the retest would occur. A rejection from this level can potentially lead DXY below recent support of 102 and lower to 101 to test the 12hr demand zone.
Last week, we got a very nice move to the upside for SHIB. To newsletter readers, this came as no surprise. In the previous edition, we stated:
“For people with no exposure to SHIB yet, it makes sense to hope for a backtest of the daily 20 EMA, which is currently sitting at 0.000007982 (but which moves up every day as the price is trading above this EMA).”
Alternatively, a more aggressive approach is to wait for a backtest of the 10 EMA on the daily timeframe, which is currently sitting at 0.000008155 (but also moves up every day as the price is trading above this EMA).
Suppose SHIB manages to get and close above the daily 200 EMA. In that case, we expect even further upside possibilities to the 0.00000999 level, which would be our second profit-taking target (after the daily 200 EMA).”
The aggressive approach to getting on board for SHIB based on finding an entry at the daily 10 EMA worked out perfectly.
SHIB retraced to 0.000008078, held the daily 10 EMA, and bolted up 28.9% in just a few days, from where we suggested searching for an entry at 0.000008155 to 0.000010513. Both our targets, the daily 200 EMA and 0.00000999, got hit.
At the moment of writing, SHIB is trading at 0.0000009499 again, caught under the daily 200 EMA and still holding strong above the daily 10 EMA (as we said in the prior edition, the daily 10 EMA is a very solid level of support on the daily timeframe in a vicious uptrend). As long as SHIB is trading in a daily 20/55 EMA bull cross, the overall directional bias remains bullish.
However, the long setup from last week hit both targets, and we do not suggest immediately jumping in long again.
After hitting a monster move, it's very important to lock in profit and approach the chart again with a new plan, not always feeling the need to be involved in every single move. This is truly a “crypto-pleb” mindset.
Currently, we are attaching a lot of value to the daily 200 EMA for SHIB.
IF SHIB gets above the daily 200 EMA and closes above it with three consecutive daily candles, we are expecting upside to at least the 0.000011870 level, which is a very important swing high on the daily timeframe that was made on April 16th.
Lots of short trades will still have a stop loss above this swing high, which makes it a high liquidity area and therefore an attractive zone for market makers to move back to.
IF SHIB starts closing daily candles above the 0.000011870 level, then the next two targets that we are looking at on the long side are 0.000014037 and 0.000015748.
For SHIB, we can only really adopt a bearish view once we lose all the EMA’s on the daily timeframe and close three consecutive daily candles below the daily 55 EMA.
Then, and only then, can we expect further continuation to the downside with a lot of confidence.
In that case, the 0.000006556 and 0.0000004783 levels are the support levels to look for a bounce play.
IF SHIB comes to either of those support levels and goes below, then the first 4H candlestick close back above the level of support is an excellent level to long from, placing a stop loss on the low that was created below the given level of support and targeting back to the upside for at least a 2:1 ratio of reward to risk taken.
Not only our SHIB analysis, but also our PEPE analysis from last week's newsletter worked out perfectly. Last week we gave out two levels of support: 0.0000012223 and 0.0000010930.
We suggested taking a look at those two particular levels, and waiting for a 4H candlestick close back above the level of support after first having dropped below it, as an entry for a long position.
While the price action at the 0.000001223 level got choppy, we clearly said that if we dropped below that level, the next level to play from was 0.0000010930.
Recently, PEPE indeed dipped below 0.0000010930, but managed to close the same 4H candle back above this level of support, more specifically, closing at 0.0000011031.
From that 4H candle close, PEPE ran up to 0.0000012300 so far, which is almost a 12% move from our suggested entry point.
That means that only even from taking our SHIB and PEPE calls to heart, there was at least 40% profit on the table last week (unleveraged; 28%+ on SHIB and 10%+ on PEPE)
We also clearly stated that we were MORE bullish on SHIB than on PEPE, fully expecting SHIB to put in a bigger move than PEPE, which it clearly did.
Many (probably inexperienced) people got tricked into ticking that the new and ‘shiney’ memecoin, PEPE, would straight out outperform SHIB. We are happy to have provided you in the newsletter with the information necessary to capitalize firstly on the bigger move (SHIB).
If you are currently in this long trade for PEPE from 0.0000011031, then we would suggest trailing the stop loss to your entry point already, as PEPE is still in a downtrend and not necessarily out of the woods yet.
For PEPE to break out of its downtrend on the 4H timeframe, we should AT LEAST get back above 0.000001223 and hold above this level with three consecutive 4H candle closes.
If we do that, then it wouldn’t be out of the question for PEPE to run back to some nice upside targets such as:
If PEPE makes another move to the downside, which is definitely also realistic, the main levels of support to play from next are 0.0000009860 and 0.0000008080.
The same entry criteria as those of the prior week apply to those levels.
We want to see a move down to and below our level of support, then on the first 4H candle close back above the given level of support, we suggest taking a long position, putting your stop loss under the low made below the level of support and targeting back up with at least a 2:1 ratio of reward to risk taken.
This means that wherever the entry comes, the first profit taking target is at least twice the move from the entry point than the move from the entry point to the stop loss.
Two weeks ago, we presented an in depth analysis on Dogecoin.
Back then, we said:
“The second key level is the 0.07262 level, which we have identified as the POC. Coming back down to this POC is ok and an opportunity to go long.
The moment Doge comes back down and closes a daily candle under 0.07262, our bullish continuation thesis gets invalidated.”
Since this update, Doge has indeed retraced to the 0.07262 level. More than that, we have held this level beautifully, not closing a single daily candle below the level and therefore leaving our bullish continuation thesis on this ticker intact.
Buying this level of support has provided us with a 6%+ bounce opportunity so far to the 0.07710 level last Saturday.
Currently the most important level of support is still the 0.07262 level in combination with the daily 55 EMA, currently sitting at 0.07210.
If Doge was to lose the 55 EMA on the daily timeframe, then we are turning the 10, 20, 55 and 200 EMA all into resistance, which wouldn’t be a bullish statement. Especially if Doge comes and closes under the daily 55 EMA with three consecutive daily candlesticks, is when we expect a move down (much) lower.
If the downside scenario for Doge plays out, where we flip all daily EMA’s into resistance, then the levels of support to look at are:
Those three levels are levels of support where, if Doge does retrace lower, we could plan a long trade from. What we would need to see is a move down for Doge to any of those levels. Then, on the first 1H candle close back above the level, is where we would suggest taking a long entry, putting the stop loss on the low that was made below the level of support, and targeting back up higher with at least a 2:1 Reward to Risk rate.
In order to confirm continued upside for Doge from where we are at now, we will have to break above the 0.07710 resistance level that was made last Saturday. Doing so would confirm that Doge is resuming its daily timeframe uptrend.
Closing a daily candlestick above this level likely leads to a move back to the high that was made at the end of July at 0.08379, before making its way higher to the 0.09513 and the 0.10507 levels.
Lastly we want to provide a high timeframe (three day - 3D) update on EUR/USD.
EUR/USD has essentially been uptrending ever since the bottom of September 2022, respecting bullish market structure, making higher highs, and higher lows.
We are currently looking at two indications for EUR/USD that might suggest a continuation of this uptrend.
Firstly, we are trading in a 3D-timeframe bull cross of the 20 and the 55 EMA (20 EMA above 55 EMA). Ever since we have made this bull cross during the last week of 2022, we haven’t traded below the 3D 55 EMA for more than 1 single candlestick.
Secondly, we are seeing more than one month of hidden bullish divergence on price action and RSI.
While price made a low at the end of June, we now have a higher low. Meanwhile, however, the RSI is showing a lower low now than at the end of June.
This discrepancy between price action and RSI movement, where price is making a higher low, while the RSI is making a lower low, is what is called hidden bullish divergence. This, in combination with our 20/55 EMA bull cross on the 3D timeframe, are strong indications of the fact that the uptrend for EUR/USD can continue.
To us, the MAIN level of support for EUR/USD is the 3D 55 EMA, currently sitting at 1.08247. If we break below this level, and close a 3D candle under it, then we would have to flip our directional bull bias to what then likely becomes further downside continuation.
IF that happens, then we are looking at the 1.03488 level as a next key support area, where EUR/USD could bounce from.
Worldcoin, a cryptocurrency project collecting iris scans from people worldwide, had its warehouse in Kenya raided by authorities last week. The officials reportedly claimed they failed to disclose its intentions when it registered in Kenya. Worldcoin has denied any wrongdoing and said it cooperates with the authorities.
The raid comes when Worldcoin faces increasing scrutiny from regulators worldwide. In the United States, the Securities and Exchange Commission (SEC) is investigating its plans to collect iris scans. The SEC has raised concerns that iris scans could be used to track people without their consent.
Worldcoin has said that it will not use iris scans for any other purpose than to verify user identities. However, the company has not yet provided any details about how it will protect the privacy of users' iris scans.
The raid in Kenya is a setback for them, but it is not the end of the road for the company. Worldcoin still has much work to do to win over regulators and the public. However, if the company can successfully address the concerns about its privacy practices, it could still have a bright future.
The raid in Kenya and the SEC investigation is a reminder that cryptocurrency projects need to be transparent about their operations and respect user privacy. Crypto enthusiasts should be cautious about investing in projects that collect sensitive personal data, such as iris scans.
The Central Bank of Brazil (BCB) has announced that it plans to launch a central bank digital currency (CBDC) in 2024. The CBDC, called the digital real, will be a digital version of the Brazilian real, the country's fiat currency.
The digital real is still in the early stages of development, but the BCB has said that the central bank will issue it and will be backed by the full faith and credit of the Brazilian government. The digital realm is also expected to be interoperable with other CBDCs and stablecoins.
The BCB has cited several reasons for launching the digital real, including:
The BCB has also acknowledged some risks associated with the digital realm, including:
The BCB is still working out the details of the digital realm, but the launch of the CBDC is a significant development for Brazil and the global CBDC landscape. The digital real could have a major impact on the Brazilian economy and financial system, and it could also serve as a model for other countries considering issuing their CBDCs.
One of the world's largest payment processors has announced that it will launch its stablecoin, PYUSD. PYUSD will be a dollar-pegged stablecoin, backed by 1 USD for every PYUSD in circulation.
This is a significant development in cryptocurrency, as it is the first time a major payment processor has announced plans to launch its stablecoin. PYUSD could help to increase the adoption of cryptocurrencies, as it will make it easier for people to buy and sell cryptocurrencies with fiat currency.
PYUSD will be fully backed by U.S. dollars held in reserve at a bank. This means that for every PYUSD in circulation, will be 1 USD backing it up. This gives PYUSD a high degree of stability, as it is not subject to the same volatility as other cryptocurrencies.
PYUSD will be available to PayPal users in the United States, the United Kingdom, and the European Union. It is expected to be launched in the first half of 2023.
Stablecoins are a relatively new type of cryptocurrency, and there are still a lot of unanswered questions about them. Regulators must decide how to regulate stablecoins and whether they should be considered a form of money.
The launch of PYUSD is a sign that the cryptocurrency space is maturing. It is becoming more mainstream, and major companies are taking notice. This could be a positive development for the cryptocurrency space, as it could lead to more adoption and investment. However, it is also essential to know the risks associated with cryptocurrencies and do your research before investing.
On-chain data shows that long-term Bitcoin holders (LTHs) rapidly accumulate BTC. As of August 8, 2023, LTHs hold a record 14.599 million BTC, a 10% increase from the previous all-time high of 13.2 million BTC, set in January 2022.
The increase in LTH holdings is a bullish sign for the Bitcoin market, as it suggests that long-term investors are confident in the cryptocurrency's long-term future. LTHs are typically more patient investors who are not easily swayed by short-term price movements. Their continued accumulation of BTC suggests that they believe the Bitcoin price will eventually recover and reach new all-time highs.
The increase in LTH holdings comes when the Bitcoin price trades far below its all-time high of $69,000. However, the LTH metric suggests that long-term investors are not worried about the current price weakness and are continuing to accumulate BTC.
This is a positive sign for the Bitcoin market, and it suggests that the cryptocurrency is in a solid position to weather the current market volatility. It could also be a bullish signal for Bitcoin prices in the months and years.
Litecoin, the 12th largest cryptocurrency by market cap, just had its third halving. This means that the reward for mining a block of Litecoin has been cut in half, from 12.5 LTC to 6.25 LTC.
Halvings are a built-in feature of Litecoin's code. They happen every four years and are designed to make Litecoin scarcer and more valuable.
The halving has already had a positive impact on Litecoin's price. In the days leading up to the halving, the price of LTC increased by over 50%. After the halving, the price has continued to rise, and it is now trading at over $100 per coin.
There are a few reasons why the halving has caused the price of LTC to rise. It makes Litecoin scarcer. There are now only 6.25 LTC created per block, which means that the supply of LTC is decreasing over time. This makes LTC more valuable, as it becomes more difficult to obtain.
The halving is a positive signal for the future of Litecoin. It shows that the developers are committed to the project and believe in the long-term value of LTC. This confidence from the developers can also help to drive up the price of LTC.
The halving could also lead to increased adoption of Litecoin. As LTC prices rise, they will become more attractive to investors and users. This could lead to more businesses accepting LTC as payment, and it could also lead to more people using LTC as a store of value.
In the age of streaming, it can be challenging for indie artists to make a living from their music. But a new initiative from Vault hopes to change that by using NFTs to revive the classic concept of "cassette culture."
Vault is a Solana-based music platform that allows artists to create limited-edition live concert recordings as NFTs. These NFTs can then be sold to fans who will own a unique and scarce piece of the artist's work.
This idea will give indie artists a new way to connect with fans and earn money from their music. Fans will be able to support their favorite artists by buying their live NFTs, and they will also get exclusive access to bonus content, such as behind-the-scenes footage and performance videos.
Vault is currently in beta testing, but it has partnered with several popular indie artists, including Sid Simons, Sum Sun, and Charlotte Rose Benjamin. The company plans to launch its full platform in the coming months and is already looking to expand into new markets, such as Nashville, London, and Amsterdam.
Crypto enthusiasts, rejoice! There's a new way to shop for Nike apparel that's convenient and cutting-edge. Zero10, a company specializing in augmented reality (AR) technology, has partnered with JD Sports, a leading sportswear retailer, to offer virtual try-on of Nike apparel in physical stores.
The partnership will launch in JD Sports' flagship stores in Times Square, New York, and State Street, Chicago. Customers who visit these stores can use Zero10's AR mirrors to try on Nike apparel virtually. The mirrors use AR to overlay a virtual image of the apparel onto the customer's body, allowing them to see how it looks and fits. Customers can also interact with the virtual apparel by rotating it or changing the color.
Once a customer finds an item they like, they can scan a QR code on the mirror to be taken to the JD Sports website to purchase it. The virtual try-on technology is designed to help customers make more informed purchase decisions and reduce the amount of returned clothing.
This partnership is a significant win for both Zero10 and JD Sports. For Zero10, it's a chance to showcase its AR technology to a broader audience and demonstrate its potential for the retail industry. For JD Sports, it's a way to stay ahead of the competition and offer customers a more immersive and interactive shopping experience.
Web3 games are still in their early stages but can potentially revolutionize the gaming industry. By leveraging the power of blockchain technology, web3 games can offer players a more immersive, engaging, and rewarding experience.
Web3 games should seize three key opportunities to achieve mass adoption:
If web3 games can seize these opportunities, they have the potential to achieve mass adoption and revolutionize the gaming industry.
Nifty's, a Web3 NFT marketplace, has shut down after two years of operation. The company announced the news on Twitter, saying it had decided to "focus on other opportunities."
Nifty's was founded in 2021 by Duncan Cock Foster and Griffin Cock Foster. The company quickly became one of the most popular NFT marketplaces, focusing on selling high-quality digital art. However, Nifty's struggled to compete with larger NFT marketplaces like OpenSea and Rarible.
In a blog post, the Cock Fosters said they were "proud of what we built" at Nifty's. They said the company had "helped to introduce millions of people to NFTs" and "created a vibrant community of collectors."
The Cock Fosters did not say what their plans were for the future. However, they said they were "excited to continue to work in the Web3 space."
The closure of Nifty's is a setback for the NFT community. However, it is important to remember that the NFT market is still in its early stages. There is no reason to believe that NFTs will disappear altogether. There are many reasons to believe that NFTs will continue to grow in popularity.
Amazon Prime members can now get a free NFT for the Polygon game Mojo Melee. The NFT is a champion character named Gwyn Rockhopper, and it can be claimed by creating a new player account on the Mojo Melee website.
Mojo Melee is an auto battler game played on the Polygon blockchain. The game is free, but players can purchase NFTs to access exclusive content, such as champion characters, skins, and power-ups.
This is an excellent opportunity for crypto enthusiasts to get involved in the NFT space and to try out a new game. It's also a great way to support a gaming company innovatively using NFTs.
To claim your free NFT, follow these steps:
You can then use your free NFT to play Mojo Melee and access exclusive content. You can also trade or sell your NFT on a marketplace like OpenSea.
Bandai Namco, a Japanese multinational video game publisher, has launched an AI virtual pet NFT game called RYUZO. The game is played on the Polygon blockchain, allowing players to collect, breed, and battle digital pets called RYU.
RYU are unique NFTs that are created using artificial intelligence. Each RYU has its personality and abilities determined by its genetic makeup. Players can collect RYU eggs from the game's marketplace and hatch them to reveal new RYU.
Once a RYU is hatched, players can train it and battle it against other RYU. The battle winner earns experience points, which can be used to level up the RYU. Players can also trade or sell their RYU on a marketplace like OpenSea.
RYUZO is a free-to-play game, but players can purchase NFTs to access exclusive content, such as rare RYU and powerups. The game is currently in beta but is expected to be fully released later this year.
Wreck League is an exciting new project representing the next chapter in the evolution of fighting games, competitive gaming, and esports. Developed by nWay in partnership with Animoca Brands and with the participation of Yuga Labs and other renowned brands, the game brings players a fresh and immersive experience.
Key features of Wreck League include:
With endless customization options, each NFT part in Wreck League carries its own unique visuals and playstyle. Players can utilize these customizations in various game events and tournaments, enhancing the competitive spirit and providing a personalized touch to each match.
Collaboration with Yuga
Wreck League is set to collaborate with Yugaverse alongside Bored Ape and Otherside collections. In its first season, Wreck League will incorporate four Yuga collections, including Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, and Kodas. All owners of the NFT parts in Wreck League will receive free parts containing a fully constructed fighter. These parts will not be subject to any reconstruction, providing a unique and valuable player advantage.
The minting process in Wreck League will involve two types of boxes: Majestic Boxes and Booster Boxes. A Majestic Box will contain 10 random parts, allowing players to build a complete fighter from scratch. On the other hand, a Booster Box will contain 5 random parts that can be used to complete an existing fighter or create an entirely new one. The Majestic and Booster boxes are both scheduled for sale simultaneously. While the project intends to share more detailed information within the next two weeks, the minting event is planned to take place in August.
As Wreck League prepares to venture into the Yugaverse alongside prestigious collections, players can look forward to an immersive and thrilling gaming experience enriched by NFT elements and endless possibilities for customization and competition.
Amazon has refused to remove fake books written with AI from its platform, despite a request from authors who say the books are misleading and infringe on their copyrights.
The books in question were created by Botnik, which uses AI to generate indistinguishable from human-written text. The authors who filed the complaint, including Jane Friedman and Orson Scott Card, say that the Botnik books are misleading because they are not labeled as AI-generated. They also say that the books infringe on their copyrights because they contain passages copied from their work.
Amazon has defended its decision to keep the books on the platform, saying they do not violate its policies. The company said that the books are labeled as AI-generated and do not infringe on copyrights because they are transformative works.
The dispute between Amazon and the authors is complex, and there is no easy answer. On the one hand, it is important to protect authors' copyrights and ensure that consumers are not misled about the origin of the books they buy. On the other hand, it is also important to foster innovation and creativity and to allow new technologies to be used to create new forms of art and literature.
It remains to be seen how this dispute will be resolved. However, it shows the growing challenges the book industry faces in the digital age. As new technologies emerge, defining what constitutes a "book" and protecting authors' rights will become increasingly difficult.
Artificial intelligence (AI) is undoubtedly the next big battleground for big tech. The world's largest tech companies are all investing heavily in AI, and they are all using it in different ways to improve their products and services.
Meta, for example, is using AI to power its virtual reality and augmented reality platforms, such as Horizon Worlds and Quest 2. Amazon is using AI to improve its e-commerce platform by recommending products to customers and automating customer service. Google is using AI to improve its search engine, such as by understanding natural language queries and generating more relevant results. Apple is using AI to power its Siri voice assistant, Face ID facial recognition system, and Photos app. And AMD is using AI to improve its graphics processing units (GPUs), which are used in gaming, machine learning, and other applications.
The use of AI by big tech companies is profoundly impacting our lives. AI improves the efficiency and accuracy of many tasks, such as customer service, fraud detection, and product recommendation. AI also creates new products and services, such as virtual assistants, self-driving cars, and medical diagnosis tools.
As AI continues to develop, we can expect to see even more innovation and disruption in the tech industry. Here are a few things to watch for in the future of AI:
The future of AI is full of possibilities, both good and bad. It is up to us to ensure that AI is used for good and not for evil. We need to be mindful of the potential risks of AI, such as job displacement and bias, and we need to implement safeguards to prevent these risks from becoming a reality.
In a significant breakthrough for spinal cord injury research, a team of researchers at the University of California, San Francisco (UCSF) has developed a new AI-powered brain implant that can help paralyzed people move and feel again.
The implant, called the BrainGate 2, consists of a chip that is implanted in the brain and a set of electrodes that are placed on the spine and arm muscles. The chip records the electrical activity in the brain, and the electrodes stimulate the muscles. The AI software then decodes the brain signals and sends commands to the electrodes. This allows the paralyzed person to control their limbs and feel touch sensations.
The implant has been tested on a quadriplegic man named Keith Thomas. Thomas could use the implant to move his arm and hand and feel touch sensations on his fingers. The study results are a breakthrough in the field of spinal cord injury research. The implant could help millions of paralyzed people regain their mobility and independence.
The BrainGate 2 implant is still in the early stages of development, but it has the potential to revolutionize the treatment of spinal cord injuries. The implant is not a cure for spinal cord injury, but it can help improve the quality of life for people who are paralyzed. The implant is expensive, but it is likely to become more affordable as it becomes more widely available. The implant has risks, but the potential benefits outweigh the risks for many people.
The development of the BrainGate 2 implant is a significant step forward in the field of spinal cord injury research. The implant has the potential to help millions of people who are paralyzed regain their mobility and independence. It is still in the early stages of development, but it is a promising technology with the potential to change lives.
According to a new report by financial giant Goldman Sachs, investment in artificial intelligence (AI) is set to surge to $200 billion in 2025. The "AI: The Next Frontier for Growth" report predicts that AI investment will grow at a compound annual growth rate (CAGR) of 40% between 2023 and 2025.
The report also projects that AI will contribute $15.7 trillion to the global economy by 2030. This would make AI one of the most important economic forces of the 21st century.
Several factors, including the increasing availability of data, the development of new AI technologies, and the growing demand for AI-powered products and services, are driving the growth of AI investment.
The report identifies the following industries as most likely to benefit from AI investment:
The report concludes that AI is a "transformational technology" that can potentially disrupt many industries and create new ones. Businesses and investors not prepared for AI's growth will likely be left behind.
What does this mean for businesses?
The growth of AI investment is a sign of the growing importance of AI in the global economy. Businesses that want to stay ahead of the curve must start investing in AI now. There are several ways businesses can use AI to improve their operations, including:
The growth of AI investment is a major trend that is likely to significantly impact the global economy. Businesses and investors that are not prepared for this trend are likely to be left behind.
For the next few weeks, we will give you a series of challenges to complete. Each challenge will work to benefit you physically and psychologically.
Join our new TELEGRAM GROUP to share your journey! We look forward to hearing from you! Send pictures of your adventures and ways to relax.
CHALLENGE: Plan and cook your favorite meal. Whether you plan to do this alone or with another person, you can heal yourself from the inside out. Choose your favorite meal, try something new, and get lost in the kitchen!
This year, we travel to the island of Ischia, which is right off the coast of Napoli. Though they are an island and fresh fish is easily accessible, they are widely known for their rabbit. Rabbit is one of my favorite proteins as it is light, easy to digest, and very tender if made correctly. This recipe is taken from Great Italian Chefs
Ingredients:
Directions:
WINE: Pair with a white Vermentino from Ischia.
Crypto has been in constant consolidation since the news about XRP not being a security came out. The $32K barrier seems to be intact for now. We expected a flush down towards 28K for a liquidity grab and then a push towards resistance again. I believe we could break it this time unless inflation decides to push things the other way. The correlation of Crypto with stocks is completely broken. Although it seems that when stocks dump, crypto dumps as well, it has followed a more inverse pattern, if at all. I don’t think it matters as much for crypto how stocks perform, but just how crypto price action does. There seems to be a good bid on $ETH at 1800 and on BTC around 28000-29000. Support is support until it breaks, and resistance is resistance until it breaks. Long support, sell resistance with stop-outs on breakout levels around it. Look to our technical analysis for further information.
Stocks, of course, will significantly focus on macro with inflation print incoming. Our QQQ puts from last week and during the week have performed very well. We were looking to derisk into payrolls and then into CPI, and we got that. We closed 50% of our QQQ put positions in significant profit and will be riding small hedge positions into CPI if it prints higher.
Seasonality and rising energy prices can cause headline inflation to print higher than expected. It is less about what happens with the print and more about how the market reacts. The market could react that this is a one-off and rally, or it could react aggressively to higher print and risk moving lower as inflation concerns increase and the Fed tightens further. That seems to be the biggest concern as average hourly inflation increases. The Fed might be looking to hike one more time, and the market is starting to price it in. A combination of higher rates for longer and another hike could put recession fears back in focus and send stocks lower. We like buying Gold as usual for such scenarios. If inflation does come lower, we will close our Puts and hold steady. We like being long crypt at the moment with a focus on $BTC. We also like alts like $ETH, Solana, and $COMP/$CRV.
No new changes.
CRYPTO: 21%
NFTs: 17%
STOCKS: 12%
PRIVATE EQUITY: 18%
STABLECOINS: 32%
(n.d.). US Treasuries Yield Curve. US Treasuries Yield Curve. https://www.ustreasuryyieldcurve.com/
(n.d.). CME FedWatch Tool. CME Group. https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
(n.d.). Ischia-style rabbit. Great Italian Chefs. https://www.greatitalianchefs.com/recipes/rabbit-ischia-style-recipe
(n.d.). What Meta, Amazon, Google, Apple and AMD Are Saying About AI. Decrypt. https://decrypt.co/151463/ai-apple-google-meta-amazon-amd-artificial-intelligence-strategy
(n.d.). Despite Name Brand NFT Deals, Nifty's Shuts Down. Decrypt. https://decrypt.co/151078/niftys-nft-web3-shut-down
(n.d.). Gaming Giant Bandai Namco Launches AI Virtual Pet NFT Game. Decrypt. https://decrypt.co/151011/gaming-giant-bandai-namco-launches-ai-virtual-pet-nft-game
(n.d.). AI Investments Could Surge to $200 Billion Globally by 2025: Goldman Sachs. Decrypt. https://decrypt.co/151053/ai-investment-global-economy-200-billion
(n.d.). Long-Term Bitcoin Holder Metric Hits New All-Time High. Decrypt. https://decrypt.co/151561/long-term-bitcoin-holder-metric-hits-new-all-time-high
(n.d.). Kenyan Authorities Raided a Worldcoin Warehouse Last Week. Decrypt. https://decrypt.co/151719/kenyan-authorities-raided-worldcoin-warehouse-last-week
(n.d.). Amazon Prime Is Giving Out Free NFTs for This Polygon Game. Decrypt. https://decrypt.co/151033/amazon-prime-free-nft-polygon-game-mojo-melee
(n.d.). Amazon Won't Remove Books Listed Under a Real Author's Name But Allegedly Written With AI. Decrypt. https://decrypt.co/151674/amazon-refuses-authors-request-to-remove-fake-books-written-with-ai
(n.d.). Despite Name Brand NFT Deals, Nifty's Shuts Down. Decrypt. https://docs.google.com/spreadsheets/d/1SQgC4a9RdLAtoFVU_2HqDdaZQFcJ2DoH7MOuy9Si9UI/edit#gid=647936082
(n.d.). Jack Dorsey's Block Reports $5.5 Billion in Q2 Revenue—Almost Half of It From Bitcoin. Decrypt. https://decrypt.co/151161/block-announces-increase-in-profit-year-over-year-in-q223-earnings
(n.d.). Can Live Music NFTs Revive 'Cassette Culture' and Boost Indie Bands? Decrypt. https://decrypt.co/151371/can-live-music-nfts-revive-cassette-culture-boost-indie-bands
(n.d.). OpenAI to Unleash New Web Crawler to Devour More of the Open Web. Decrypt. https://decrypt.co/151662/chatgpt-web-crawler-openai-data-scraper-gptbot-gpt-5
(n.d.). 3 Opportunities NFT Games Should Seize to Achieve Mass Adoption. Decrypt. https://decrypt.co/151093/3-opportunities-web3-games-should-seize-to-achieve-mass-adoption
(n.d.). Central Bank of Brazil Reveals Name of Its Controversial CBDC. Decrypt. https://decrypt.co/151636/brazil-cbdc-drex-brazilian-cbdc-cryptocurrency
(n.d.). Kenyan Authorities Raided a Worldcoin Warehouse Last Week. Decrypt. https://decrypt.co/151719/kenyan-authorities-raided-worldcoin-warehouse-last-week
(n.d.). Litecoin Just Had Its Third Halving—Here's What That Means for LTC. Decrypt. https://decrypt.co/151005/litecoin-third-halving-what-it-means-for-ltc
(n.d.). Zero10 and JD Sports Offer Virtual Try-On of Nike Apparel at IRL Stores. Decrypt. https://decrypt.co/151310/zero10-and-jd-sports-offer-virtual-try-on-of-nike-apparel-at-irl-stores
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