Daily Flash | Crypto Deviates From TradFi Despite VIX Indicates Low Fear Amid Fed Rate Hike Decision, Tesla Made $64M From Its Bitcoin Sale

Today's Headline - Crypto Market Dips Ahead of Fed Rate Hike

The Federal Open Markets Committee (FOMC) on July 27 (2:00 pm EST) will see policymakers decide on the extent of the next interest rate move which is expected by economists to be either 75 or 100 basis points (2.25% to 2.50%).

Bitcoin continues its decline on Tuesday even as the CBOE's volatility index (VIX), a measure known as Wall Street's fear gauge, showed an absence of investor anxiety at 23.36 figure, which is its lowest since April.

Fed officials have already upped benchmark short-term borrowing rates by 1.5% this year, including a 75 basis point increase in June—the largest such increase in nearly three decades.

When the federal funds rate moves up, this impacts the entire economy: adjustable-rate mortgages, home equity lines of credit, credit cards, student debt, savings deposits, and other loans are becoming more expensive. The idea is that less accessible borrowing will dampen consumer demand, thus bringing inflation down.

The expected increase of interest rates in the U.S. also follows a similar move by the European Central Bank last Thursday when the benchmark interest rate in the Eurozone was upped by 0.5%.

The Fed has pledged not to let up its policy tightening until inflation moves materially lower toward its 2% annual target. According to CoinDesk, The central bank's preferred measure of inflation, the core personal consumption expenditure (core PCE) price index, came in at 6.3% for May.

Chart of the Day - Bitcoin Mayer Multiple: Glassnode Onchain Report

As of this writing,
Bitcoin (BTC) is changing hands at around $21,080, down 5.5% in the past 24 hours,
while Ether (ETH) is trading at $1,440, or down 8.2% during the same period.
Major altcoins such as Cardano (ADA), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), and Cosmos (ATOM) are all trading in the red between -6% to -10%.

Notable gainers include:
Numeraire (NMR) at $18.35 (+17.5%),
Request Network (REQ) at $0.127 (+9.3%),
Sushi Swap (SUSHI) at $1.36 (+4.1%),
Trust Wallet (TWT) at $0.907 (+4.3%).

Notable losers include:
Near Protocol (NEAR) at $3.74 (-11%),
Lido DAO (LDO) at $1.4 (-12.7%),
Fantom (FTM) at $0.3 (-12%),
Flow (FLOW) at $1.59 (-10.5%).

Bitcoin has declined six of the last seven days in trading volume which aligns with its 20-period exponential moving average (EMA). The 20-day EMA is beginning to tip downwards and the relative strength index (RSI) has dropped to the midpoint, indicating a balance between supply and demand.

On Monday, BTC price plummeted below its 20-day EMA, which is an important level to keep an eye on. According to analyst Rakesh Upadhyay, this move may have invalidated the breakout from the symmetrical triangle on July 18th.

In the face of macro uncertainties, especially this week when traders are expecting a rate hike decision from the Federal Reserve, BTC may move below the symmetrical triangle’s upper support and towards the $19,666 monthly support zone which is only around 8% away. If this happens, we should expect the entire crypto market to react in accordance, especially the winner of last week, Ethereum.

Ether fell nearly 10% on Monday and below its monthly support zone at $1,440. Although Ether is still trading above its 20-day EMA, the Fibonacci retracement level of 38.2% is slightly below its 20-day EMA, around $1,340, which implies the next support zone to look out for.

Influencer of the Day - Mark Cuban: SEC Regulating Crypto Will Be a ‘Nightmare’: Decrypt Report

According to Mark Cuban, the billionaire star of “Shark Tank” and owner of the Dallas Mavericks, the SEC’s attempt at regulating how cryptocurrencies are registered will be nothing short of a “nightmare,” in response to a tweet from Senator Patrick Toomey that criticized the SEC.

Senator Toomey called out what he described as a “regulation-by-enforcement approach” toward the crypto industry by the agency, which recently filed civil and criminal charges against three individuals. He believed it would’ve been better if the SEC clarified what entails a digital asset being classified as a security prior to charging the individuals.

In Cuban’s original tweet,

“Think this is bad? Wait till you see what they come up with for registration of tokens. That's the nightmare that's waiting for the crypto industry. How else do you keep thousands of lawyers employed and create reasons to ask for more taxpayer money?”

He also linked to a video of him seeking guidance from the SEC on insider trading rules back in 2014, in which he expressed frustration over being directed to rules for filing a no-action letter that dated back to 1980, saying they were unclear.

Buzzes of Yesterday - #Tesla Made $64M from its Bitcoin Investment, #Stablecoin Bill Delayed in the U.S.

Class Action Lawsuit Claims Yuga Labs ‘Inappropriately Induced’ BAYC Investors

Shiba Inu Flips Tron (TRX) As SHIB’s Metaverse Gathers Pace

Tesla reports $64M profit from Bitcoin sale

Chipotle takes 'buy the dip' literally with new $200K crypto giveaway

Barclays to Buy a Stake in Cryptocurrency Firm Copper

Japanese banking giant SMBC ($2.1 trillion in assets) to develop NFT and Web3 projects

22.9 million people register interest in Dubai Police’s first NFT collection

US Stablecoin Bill Delayed, but Draft Language May Soon Emerge

CFTC will remodel LabCFTC, education office to increase regulatory efficiency

Author: Gate.io Researcher Peter L.
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