- Markets have continued their rally from yesterday's FOMC meeting that resulted in a predicted 75bps hike for the Fed Funds Rate. $BTC and $ETH are up 9.2% and 13.5% over the last day, trading at $23.5k and $1.69k, respectively. Higher-beta alternate Layer 1s $BNB, $SOL, and $AVAX are changing hands at $272 (+5.7%), $41.4 (+11.4%) and $23.8 (+11.8%). The most notable performers from the top 100 include DeFi fixtures $LDO ($2.32 | +46.8%) and $SNX ($4.20 | +40.9%), and Ethereum hard fork $ETC ($36.9 | +35.7%). As the Ethereum Merge draws closer, there is a notable split between the community among those who support the transition to PoS, and others who favor the original PoW chain. Chandler Guo, a notable member in the Ethereum Classic community, has already voiced that he will fork Ethereum again in its PoS transition to the Beacon Chain.
- The Federal Trade Commission voted 3-2 in favor of filing suit to block Meta's purchase of VR fitness app maker, Within. The commission stated that the acquisition violated antitrust laws as it would 'dampen future innovation and competitive rivalry,' given that Meta already owns VR game Beat Saber. The filing further states that 'Meta would be one step closer to its ultimate goal of owning the entire metaverse.' Crypto-natives may find the statement ambiguous, as the 'metaverse' still holds a loose definition amongst different demographics. 'Metaverses' hosted on centralized companies like Meta are prone to the same centralization tradeoffs that VR gaming companies currently have, analogous to private blockchains hosted by permissioned validators.
- This morning, The Commerce Department announced a 0.2% contraction in GDP for Q2. Q1 figures were -0.4%. Technically, this would signify a recession - the widely accepted definition of a recession is characterized by two consecutive quarters of negative GDP growth. However, most economists and the Fed have suggested that this definition is too simplistic, and factors like income, spending, and employment should be considered. Consumer spending rose 1% (annualized), with expectations for the demand vector to slow down further. Home construction and business construction, both known leading indicators for entrepreneurs to take risks, have sagged by 14% and 11.7%, respectively.
Crypto Daily Report – July 28
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