Crypto surges as court ruling paves the way for first Bitcoin ETF.

Elon Musk’s X obtains licence needed for adding crypto payments.

BTC Markets in Forbes, Yahoo Finance, Forkast, and Chainsaw.

Australian inflation eases, bolstering case for policy pause.

Aussie retail sales surged by 0.5% in July, surpassing expectations.

U.S. job openings declined to their lowest point in over two years.

Fed Chair Powell states inflation is too high, further rate rises ahead.

Forbes: Elon Musk’s X platform obtains the licence needed for adding crypto payments.

Elon Musk, the Tesla billionaire who took Twitter private last year and rebranded it X as part of a plan to make it into an "everything app," could be plotting a major "PayPal update," according to a leak last week. It now appears that on August 28th, X was granted a currency transmitter license by Rhode Island regulators, giving the company the ability to custody, transfer and exchange Bitcoin and other cryptocurrencies. 

Caroline Bowler, CEO of BTC Markets, told Forbes:

"The news of Elon Musk's X (formerly Twitter), obtaining a license to facilitate U.S. crypto payments amplifies the ongoing transformation of the crypto landscape. Endorsements from prominent figures like Musk lend credibility to the sector and hold implications for international markets."

The Chainsaw: Why are the prices of Bitcoin and Ethereum up?

The price of Bitcoin and Ethereum surged on Tuesday. So why is Bitcoin's price going up and why is Ethereum following that same trajectory? As it happens, the price surge comes after a favourable ruling from a US court for Grayscale Investments.

Regarding the federal court’s decision, BTC Markets CEO Caroline Bowler told The Chainsaw:

“It is important to clarify it is not a ruling in favour of converting its fund into a Spot Bitcoin ETF, as some might have anticipated. Instead, the presiding judge granted Grayscale’s petition for review and simultaneously vacated the commission’s order. This development underscores the complexity of regulatory dynamics in the crypto space, where legal battles can shape the path of innovative financial instruments.”

“The escalating involvement of these well-established financial entities highlights the growing demand for cryptocurrencies. As global markets stride forward with institutional adoption and regulatory clarity, it is crucial for Australia to stay with the pace."

“Adopting responsive regulations can leverage blockchain and cryptocurrencies while managing risks. As Australia charts its course, aligning regulations with innovation is crucial to stay competitive globally.”

BTC Markets partners with SYLA, offering a crypto tax solution for Australians.

SYLA's integration streamlines crypto taxation and optimises CGT outcomes. It supports SMSF entities and provides ATO-compliant reports for various account types. Users can access a 30% discount on SYLA subscriptions through BTCMSAVETAX code. 

To learn more about our tax reporting process, visit our 

Grayscale's recent legal victory against the U.S. Securities and Exchange Commission (SEC) alongside Elon Musk's X (formerly Twitter), obtaining a license to facilitate U.S. crypto payments saw a market wide rally in crypto. Bitcoin saw a price pump of 7.74% during Tuesdays trading session, closing with a respectable 6.12% gain, after 10 days of sideways action, following the 

. Bitcoin pushed as high as US$28,142 but has been unable to hold above that level. The total crypto market cap responded positively to the news gaining 4.78% on the day, with a spike up to US$1.098T.

Announcements by global institutional players, such as Blackrock, Fidelity Digital Assets, Charles Schwab, and Citadel Securities, signifies a notable shift towards the widespread acceptance of digital assets as an investment class. The escalating involvement of these well-established financial entities highlights the growing demand for cryptocurrencies.

As the trading week ended on Monday*, Bitcoin (BTC) consolidated, closed at US$26,101.77, reflecting a decrease of 0.34%. Meanwhile, Ethereum (ETH) also experienced a decline of 1.60%, reaching a closing price of US$1,658.33. XRP exhibited the most substantial loss among the top cryptocurrencies, though it maintained a position above the psychological threshold of 50 US cents, closing at US$0.5263, down by 2.75%. On a positive note, Litecoin (LTC) managed to secure a 0.21% gain, ending at US$65.39, while Cardano (ADA) faced a decline, closing the week at US$0.2634, marking a decrease of 2.55%.

In terms of market capitalisation, Bitcoin made a modest recovery, advancing by 0.27% and concluding the week with 49.14% dominance. However, the overall cryptocurrency market capitalisation experienced a contraction of 0.62%, reaching US$1.034 trillion by the week's end.

Taking a broader view of the year-to-date** performance, Bitcoin maintains the lead with a noteworthy 67.63% increase. XRP, once the leader, has seen its advantage diminish to a 58.45% gain. Ethereum follows closely with a 44.63% rise, and Cardano remains positive with a 10.41% increase. Conversely, Litecoin has slipped into negative territory, with a decline of 2.25% over the course of the year.

*The weekly trading stats as of Monday, August 28th at 10:00 am AEST, based on data from Tradingview in USD.

**Year-to-date performance as of Thursday August 31st at 10:00 am AEST, based on data from Tradingview.

China’s NBS Manufacturing PMI. Year-on-year Inflation Rate releases for the Euro Area, France and Italy. India’s GDP Growth Rate year-on-year. United States' Core PCE Price Index, Personal Income and Personal Spending month-on-month.

China's NBS Manufacturing PMI. United States’ Payrolls and Unemployment Rate.

 Reserve Bank of Australia’s Interest Rate Decision.

Australia’s GDP Growth Rate quarter-on quarter.

 Australia’s Balance of Trade. United States’ ISM Services PMI.

Grayscale CEO predicts a crypto environment ‘we haven’t seen before’ after legal win.

Grayscale Investments CEO Michael Sonnenshein predicted that the stage is now set for 

"an environment around crypto that we haven’t seen before"

 after what he called an "overwhelming victory" this week over the Securities and Exchange Commission (SEC).

A three-judge panel of the District of Columbia Court of Appeals in Washington said Tuesday the SEC was "arbitrary and capricious" when it denied an application from Grayscale to convert its Grayscale Bitcoin trust (GBTC) into a spot Bitcoin exchange-traded fund.

Sonnenshein told Yahoo Finance he is encouraged that the recent legal decisions combined with some movement in Washington around legislating the crypto world will provide momentum for the industry.

The decision could bolster the chances for other asset managers to win approval for their Bitcoin products. The world’s largest money manager, BlackRock, filed paperwork with the SEC in June to create a spot Bitcoin ETF. This ruling from the federal appeals court only requires the SEC to review Grayscale's application, not to approve it. The SEC has said it is reviewing the decision and has until mid-October to request a re-hearing of the case.

What the Grayscale court ruling on spot Bitcoin ETF means for crypto.

Grayscale moved closer to launching a spot-based Bitcoin exchange-traded fund in the US after a three-judge appeals panel overturned a decision by the SEC to block it. Fractal co-founder and co-CEO Aya Kantorovich joins Ed Ludlow and Caroline Hyde to discuss this potential watershed moment for the crypto industry on 

London-based Jacobi's crypto ETF brings ESG label into Bitcoin.

Earlier this month, Europe launched its first spot Bitcoin ETF on Euronext Amsterdam under the ticker BCOIN. 

Jacobi has now attached an ESG label to its ETF.

 ESG stands for Environmental, Social, and Governance. This label helps enhance transparency related to sustainable investment products. Martin Bednall, the CEO of Jacobi, contended that the ETF will be “fully decarbonised.”

“Never before have the EU’s environmental, social, and governance investing rules been applied to an ETF whose primary goal is to let investors speculate on the value of Bitcoin.”

According to Bednall, by purchasing the Renewable Energy Certificates (RECs), Jacobi will be supporting enough renewable energy projects to make up for the greenhouse gas emissions of the energy used to mine the Bitcoin tracked by the ETF. 

However, environmentalists are sceptical. Anders Bjørn, the lead author of a 2022 article on RECs published in Nature Climate Change, said,

“[The decarbonisation claim] is only credible if Jacobi Asset Management can show that their purchasing of RECs causes an equivalent amount of renewable energy to be generated. That seems highly unlikely, as the company purchases unbundled RECs to match the electricity consumption from Bitcoin mining.”

Bednall said he was aware of all the flip sides, but the firm chose to tread on the REC path only after weighing all other available options. He added,

“RECs were preferred over offsets, as the most material part of our carbon footprint is in relation to the electricity consumption of the Bitcoin network.”

Inflation eases beyond expectations, bolstering case for extended RBA policy pause.

Retail sales surged by 0.5% in July, surpassing expectations.

Incoming RBA Governor Bullock cautions coal-fired power plant closures could impact inflation.

Aussie dollar rebounded to US64.27¢ due to China's minor stimulus.

Australia's monthly inflation gauge showed a larger-than-expected easing, reinforcing the argument for the Reserve Bank (RBA) to continue its 

. The consumer price indicator rose by 4.9% in July from a year ago, below economists' projection of 5.2%. The data, reflecting global trends, marks the third consecutive slowdown, aligning with the RBA's expectation of inflation returning to its 2-3% target by late 2025. This information suggests that the central bank might extend its policy of not tightening. The outcome led to a decrease in currency and government bond yields, signalling market confidence in the RBA's stance.

Reserve Bank governor Michele Bullock has cautioned

 that the closure of coal-fired power plants without adequate renewable generation and storage capacity could lead to higher energy prices. The investment required to meet Australia's net-zero emissions target by 2050 might also push inflation higher. Bullock warned that a lack of investment in alternative generation capacity could pose a significant risk to the Australian economy. Despite recent progress in reducing inflation, Bullock did not rule out further interest rate hikes if necessary to reach the RBA's inflation target. She highlighted the need to focus on inflation and implementing RBA review recommendations.

Australia's month-on-month retail sales surged by 0.5%,

 surpassing expectations, and recovering from June's decline, as per the Australian Bureau of Statistics (ABS). The 

Australian dollar rebounded to US64.27¢ due to China's minor stimulus

, reducing stock trading stamp duty, and planning affordable housing. China's gradual approach to its property crisis concerns investors.

China's economic issues concern Australia due to deflation

, falling exports, and rising unemployment, risking Australian jobs and growth. Treasurer Jim Chalmers is concerned about China's weak retail and property sectors. Australia's Treasury expects flat growth, while ANZ forecasts modest retail, construction growth, and 0.8% consumer price index rise due to power prices.

Fed Chair Powell states inflation is too high, indicating further rate rises ahead.

Economic concerns in China intensify as doubt spreads among share market investors.

Japan’s unemployment rate increases, raising concerns for wages and the BOJ.

German inflation showed a minor decline in August.

ECB President Christine Lagarde avoids stance on upcoming interest rate decision.

U.S. job openings declined to their lowest point in over two years

, typically seen as negative news for the broader market. However, this decline was interpreted as an end to the prolonged maintenance of higher interest rates by Federal Reserve officials in response to a tight labour market. Which caused the DXY to drop and a broader market rally. Layoffs remained constant reflecting employers' endeavours to retain their workforce amidst challenges in labour recruitment post-pandemic. Noteworthy, quits decreased, possibly impacting wage growth and inflation dynamics.

In his recent speech at the Jackson Hole Symposium, 

 reiterated the importance of interest rate adjustments for managing inflation while upholding economic stability. Simultaneously, 

U.S. business equipment orders experienced moderate growth in July

 amid economic uncertainties and elevated borrowing costs, indicating cautious decisions regarding capital investments.

doubt spreads among share market investors

 regarding the effectiveness of policy initiatives. Despite an initial surge, the CSI 300 index pulled back following a reduction in stamp duty on share transactions by authorities. This move is met with uncertainty about its potential impact on the real estate sector.

The transition toward consumer-driven growth faces obstacles due to President Xi Jinping's reservations, as he prioritises cutting-edge industries over establishing comprehensive social safety nets. The hesitance to implement substantial economic changes worsens the risk of contagion from a property market decline to challenges within the shadow banking sector. The crackdown on the private sector contributes to rising youth unemployment and a growing sense of disillusionment, giving rise to dissatisfaction in the wider community.

Japan's unemployment rate saw its first rise in four months during July

, accompanied by a slight decline in a labour demand indicator. These signals are unsettling for both the Bank of Japan (BOJ) and the government. The Ministry of Internal Affairs reported a rise in the jobless rate to 2.7% from June, contrary to economists' expectations of it remaining at 2.5%. This development holds significance for Japan's wage dynamics and the policy considerations of the BOJ and government.

Japan's consumer confidence index dropped in August 2023

 from the preceding month's 19-month peak. This figure fell below market expectations, whilst the sentiment among households weakened across all components, including income growth, employment, overall livelihood, and willingness to purchase durable goods.

German inflation showed a minor decline in August

, whilst consumer prices rose by 6.4% year-on-year, just slightly lower than July's 6.5%. The core inflation rate, excluding volatile items, remained steady at 5.5%. Despite the slight dip, Eurozone inflation is expected to remain higher than anticipated. This data could influence the European Central Bank's (ECB) decision on a potential 25 basis points rate hike at their upcoming September meeting. The ECB aims to gauge whether underlying inflation has shifted. Despite external cost pressures easing, service prices' rise due to increased wage growth might maintain core inflation above the ECB's 2% target.

Germany's Consumer Climate Index fell in September

, reflecting worsened income expectations, rising food and energy costs, and weak economic indicators. August saw income expectations drop by 6.4 points to -11.5, impacted by higher prices despite milder July inflation. The propensity-to-buy indicator fell due to inflationary pressures and rising costs. Germany's Q3 outlook is marked by growing pessimism. The 

IFO Business Climate Index for August hit 85.7

, below the anticipated 86.7, signalling prolonged economic challenges.

President Christine Lagarde refrained from taking a clear position

 on the upcoming interest rate decision, which would mark the tenth consecutive time, during her speech at the Jackson Hole retreat. While some colleagues advocate for restraint in continued rate hikes, Lagarde stressed anchoring inflation expectations at 2%, without confirming a rate hike or pause. This differs from her predecessor, Mario Draghi, who made policy announcements at Jackson Hole. Lagarde's approach aims for consensus-building rather than unilateral decisions. Lagarde highlighted data-dependent decisions due to the complexity of interpreting economic indicators.

Euro-area economic confidence fell more than expected

, with the European Commission's sentiment gauge declining in July, the fourth consecutive drop and below forecasts. Declines in services, industry, and consumer expectations sub-indicators were observed. Weak third-quarter indicators, including PMIs signalling potential contraction, raise debates among dovish and hawkish ECB policymakers regarding the September 14 interest-rate decision, considering persistent inflation pressures.

Crypto surges as court ruling paves way for first Bitcoin ETF.

Grayscale's legal victory allows a Bitcoin ETF

, offering access to everyday investors. Converting the ETF could unlock value for Grayscale's US$16.2 billion trust. Grayscale's Bitcoin Trust surged 21% whilst Bitcoin rose 8.3%. 

The SEC rejected Grayscale’s conversion proposal in 2022, arguing that an ETF based on Bitcoin lacked adequate oversight to detect fraud. Grayscale sued to overturn the decision accusing the SEC of discriminating against its product, while approving similar Bitcoin futures ETFs.

During a hearing on the case in March, the judges grilled the SEC about its decision and seemed to side with Grayscale’s argument that the underlying markets for spot Bitcoin and Bitcoin futures pose the same risk for fraud and manipulation.

The SEC's challenges over its crypto stance add to digital asset momentum. Grayscale's win could reshape crypto investments and affect finance giants seeking Bitcoin ETFs, arguing SEC's denial was arbitrary, akin to approved futures ETFs.

Ethereum experiences highest whale activity in months amidst price drop.

Weekly Crypto Wrap: 31st August 2023

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The collaboration addresses a long-standing challenge for cryptocurrency investors - accurately declaring and managing taxes on their digital assets. Whether you embarked on your crypto journey yesterday or a decade ago, SYLA streamlines the process, ensuring compliance with Australian taxation regulations.

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 With an increasing number of Australians exploring the potential of Self-Managed Super Funds (SMSFs) to invest in cryptocurrencies, SYLA caters to this demographic by offering specialised support tailored to SMSF entities.

SYLA’s crypto tax software application simplifies complex tax reporting processes and generates ATO-compliant reports for various account types, from individual investors to SMSFs. With a commitment to transparency and accessibility, SYLA offers its services at a flat fee that covers up to 10,000 transactions.

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BTC Markets x SYLA: Transforming crypto tax management.

Friday’s ‘flash crash’ sees over US$1 billion in liquidations on derivative exchanges.

Unexpected rise in Australian unemployment amidst an ongoing economic recovery.

AI powerhouse, Nvidia, exceeds Q2 predictions reporting a 171% on the year.

US Treasury yield surges to its highest point since November 2007.

AU$3b a year: Aussie digital dollar could save billions per year.

Ripple reveals eight countries building CBDCs on XRP Ledger.

Solana flips Polygon to become the second-largest network for NFTs.

Our CEO in the AFR: Bitcoin's next big price catalyst is coming.

"The halving is indicative of the fact Bitcoin is a young technology and does what it says it will do." BTC Markets CEO, Caroline Bowler.

Given the current price action of Bitcoin, the AFR's Tom Richardson explores what is coming on the horizon for the world's largest cryptocurrency, particularly in light of next year's halving event. With commentary from our CEO, Caroline Bowler. Read the 

Stockhead: Commentary from BTC Markets CEO.

Our CEO, Caroline Bowler, shares her insights and analysis with financial publication Stockhead, regarding last week's sell-off in the crypto market.

In the past 24-hour period, the cryptocurrency market, has seen an unprecedented sell off considering the low volatility and market consolidation of the past few weeks.

Following weeks of sideways action, we finally saw some movement in the crypto market, although not in the direction that many of us had hoped for. In the earlier hours of Friday morning in Australia, the market witnessed what can only be described as a ‘flash crash’ causing over US$1 billion in liquidations across several derivative exchanges. The 

largest single liquidation occurred on Binance

 in the ETH BNB pair which saw a single trade lose US$56 million. Ouch.

Many market participants have been speculating as to what caused the sudden 7.33% price drop in 24 hours, with stories ranging from Elon Musk Space X writing down the value of its Bitcoin holdings, to China’s property developer Evergrande’s filing for bankruptcy. Or possibly due to the rise in government bond yields to weakening global markets. Others point to the impending rate hikes from the US Fed to a deliberate take down by a crypto whale. Take your pick of one, or all the above. No one knows.

Bitcoin saw its biggest single daily sell off since 9th November 2022 from the FTX collapse, losing 7.33% in a single day. Price has returned to a consolidation phase, holding firm around the US$26,052 range whilst the ‘Crypto Fear and Greed Index' has plummeted to 37 in the Fear Zone down from 53 Neutral Zone last week.

As the trading week concluded on Monday*, Bitcoin (BTC) saw double digit losses closing at US$26,189.99, down 10.63%. Ethereum (ETH) fared slightly better down 8.45%, settling at US$1,685.25. XRP rebounded to close above the 50 US cents psychological barrier closing at US$0.5384, down 13.94%. Litecoin (LTC) also suffered double digit losses, down 20.35%, closing US$65.25 and Cardano (ADA) rebounded to close the week at US$0.2703, representing a decline of 6.60%.

In terms of market capitalisation, Bitcoin took a hit, losing 2.45%, closing with 49% dominance as the collective cryptocurrency market capitalisation shrank by 8.30%, closing the week at US$1.04 trillion.

Reflecting on the year-to-date performance**, Bitcoin, is back in the lead up 57.38%, while XRP's massive lead has dwindled to 53.85%. Ethereum trails with a 39.05% increase, Cardano is holding in the green with a 6.31% gain, while Litecoin has slipped into negative territory down -5.35% on the year.

*The weekly trading stats as of Monday, August 21st at 10:00 am AEST, based on data from Tradingview in USD.

**Year -to-date performance as of Thursday August 24th at 10:00 am AEST, based on data from Tradingview.

United States’ Durable Goods Orders MoM.

United States (US) Fed Chair Powell Speech. Euro Area ECB President Lagarde Speech.

Japan’s Unemployment Rate. Germany’s GfK Consumer Confidence. France’s Consumer Confidence. Reserve Bank of Australia (RBA) Bullock Speech.

US JOLTs Job Openings. Japan’s Consumer Confidence. Euro Area Economic Sentiment. Germany’s Inflation Rate YoY.

China’s NBS Manufacturing PMI. France’s Inflation Rate YoY. Euro Area Inflation Rate YoY. Italy’s Inflation Rate YoY. India’s GDP Growth Rate YoY. US Core PCE Price Index MoM. US Personal Income MoM. US Personal Spending MoM.

$3b a year: Aussie digital dollar could save billions.

A new report from the Reserve Bank of Australia (RBA) suggests that introducing a wholesale (not retail) form of eAUD, 

Australia’s proposed central bank digital currency (CBDC)

, could offer significant savings across the financial system, cutting collateral and capital held against settlement risk.

 from the RBA and Digital Finance Co-operative Research Centre suggests that banks and other financial market participants could save at least several billion dollars a year if a CBDC were introduced to the wholesale market. If the average savings were as estimated in the report, AU$3 billion, this would represent significant savings, more than 10 per cent of the total profits of the big four banks. An Australian CBDC could reduce costs for banks in cross-border payments, which currently require a network of corresponding banks and processes that can take days.

Settlement and payment are processes crucial to the backbone of the financial system, but current functions are slow, expensive, and outdated. According to this report, one of the major benefits of introducing a CBDC is ‘atomic settlement’. This refers to the payment and title transfer happening instantly, removing settlement risk and requiring lower levels of collateral to support the process. Atomic settlements are one of the many reasons that make blockchain technology, and cryptocurrency, too advantageous for traditional financial players to ignore.

Notably, the report did not include consideration of issuing a form of eAUD to the retail market to ‘avoid competing with commercial bank deposits.’ Instead, it suggests an eAUD provided to industry market players who deal directly with the RBA, as a new wholesale form of central bank money. Despite this, the benefits of introducing a CBDC in Australia would likely flow through to the real economy and to investors indirectly by reducing the cost of collateral required in the current financial system. A cost which is currently shifted on to end investors in the form of higher fees.

Coinbase acquires stake in Circle, dissolving USDC Issuer Centre Consortium.

Centre Consortium, which issues the USDC stablecoin, has been dissolved as 

Coinbase acquires a minority share in Circle

 Internet Financial, according to a blog post from the company.

"Centre will no longer exist as a stand-alone entity and Circle will remain as the issuer of USDC, bringing any Centre governance and operations responsibilities in-house," Circle CEO Jeremy Allaire and Coinbase CEO Brian Armstrong said in a jointly authored blog post. The announcement added that revenue from interest earned on the dollar reserves backing USDC tokens will continue to be shared between the two firms, but the split will now be equal.

USD Coin (USDC) stablecoin issuer Circle has always been linked to Coinbase through its consortium, a separate group set up in 2018 to govern the U.S. dollar-pegged token. At the time, the consortium said that it welcomed "broad industry participation" and that it would introduce more USDC issuers. Now Circle will be the only USDC issuer.

The blog post also said that USDC will launch on six new blockchains through the end of October - but without naming which networks. That will mean that USDC will be available on 15 different networks, according to the companies.

Unexpected rise in unemployment amidst an ongoing economic recovery.

Intergenerational Report sheds light on the impact of an aging population.

ANZ-Roy Morgan Consumer Confidence index experienced a decline of 2.4 points.

Aussie dollar slides to the lowest level since November 2022.

The latest economic developments in Australia indicate unexpected challenges in the form of a 

rising unemployment rate, which reached 3.7%

 despite earlier forecasts of 3.6%. This follows a period of average monthly job growth earlier in the year, although the current rate remains higher than last year, it still falls short of pre-pandemic levels. The unexpected rise supports the argument for the Reserve Bank of Australia (RBA) to maintain stable interest rates, considering inflationary pressures confronting the economy.

‘Intergenerational Report’ outlines major economic challenges

 driven by Australia's aging population. Over the next four decades, the population of those aged over 65 is expected to double, while those aged 85 and above are predicted to triple. This demographic shift is poised to become a central driver of government spending. Treasurer Jim Chalmers underscores the significance of adapting to these demographic trends, given the slower population growth rate and increased life expectancy.

The ANZ-Roy Morgan Consumer Confidence index experienced a decline of 2.4 points, extending a record streak of 25 consecutive weeks below the benchmark. This drop in consumer confidence coincided with the Australian Dollar sliding towards 64 US cents, marking its lowest level in over nine months since November 2022. This decline in the currency has led to a surge in the prices of imported energy commodities, particularly oil, as the average price for petrol rose to $2.05 per litre, reaching the highest point in over a year.

The negative shift in the index could also be attributed to reduced sentiment regarding personal finances and the economic outlook for both the next year and the next five years. The percentage of Australians who perceive their families as being 'better off' financially compared to last year decreased to 19%, while 53% indicated that they are 'worse off.'

ANZ's Senior Economist, Adelaide Timbrell, noted the decline in consumer confidence, potentially influenced by the weakening Australian dollar. Despite this, the four-week moving average of the index continued to rise. Within housing segments, confidence dipped for outright homeowners and renters but remained relatively steady for those paying off their homes. Furthermore, household inflation expectations increased from 5.2% to 5.5% in the past week.

Nvidia exceeds Q2 predictions reporting a 171% on the year.

Japan’s annual inflation rate remained steady at 3.3% in July.

UK retail sales slump to 1.2% in July as inflation eases.

Nvidia, the leading producer of chips fuelling the generative AI powerhouse, exceeded Q2 predictions. The data centre segment, fuelled by AI chips, 

. Notably, Nvidia is valued at over US$1 trillion, joining the likes of Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon.

10-year US Treasury yield has surged to 4.35 percent

, marking its highest point since November 2007, a period preceding the full onset of the ‘Great Financial Crisis’, triggered by the Lehman Brothers collapse almost a year later.

"Concerns are emerging as the bond sell-off gains momentum, prompting scrutiny of the remarks that [Federal Reserve Chair Jerome] Powell will make later this week regarding peak interest rates," remarked Seema Shah, Chief Global Strategist at Principal Global Investors.

To tackle elevated inflation, the Fed has already pushed its primary interest rate to levels not witnessed since 2001. This move is aimed at curbing inflation by significantly slowing down economic growth, albeit at the expense of impacting investment prices.

Amid the build-up of anticipation surrounding Powell's address, there is a degree of uncertainty regarding the clarity of the message he might convey from the Jackson Hole platform, as outlined by Goldman Sachs.

Two prominent Wall Street strategists are divided on the trajectory of US stocks following a three-week decline. A debate is ongoing about whether the economy can avoid slipping into a recession.

While Morgan Stanley's Michael Wilson, a notable proponent of bearish equity sentiment, argues that investor sentiment could further deteriorate if doubts regarding economic resilience persist, David Kostin, his counterpart at Goldman Sachs, maintains that there is potential for investors to enhance their exposure if the economy remains on a path toward a controlled slowdown.

The annual inflation rate in Japan remained steady at 3.3% in July, posing further challenges for the Bank of Japan (BoJ) and its ultra-loose monetary policy approach. Core inflation, however, softened slightly from 3.3% to 3.1%. These inflation figures are of significance as they test the validity of the BoJ's approach.

While the moderate decline in core inflation might provide some relief, the BoJ is still confronted with persistent inflationary pressures. In recent forecasts released by Japan's government, growth of 1.5% was projected along with an inflation rate of 2.6% for the current fiscal year. These figures suggest a departure from the ultra-loose monetary policy stance.

the HBOC Germany Manufacturing PMI increased slightly

, surpassing expectations. However, the sector remains in contraction, marking a fourteen-month decline attributed to reduced customer inventory and investment reluctance, leading to a significant drop in new orders. This situation, combined with consumer uncertainty and expectations of rising interest rates, has pressured production despite lower backlog. Employment saw a marginal decrease whilst manufacturers' purchasing prices fell at a slower rate than the previous month. Looking ahead, there's a slight rise in optimism among goods producers for the coming year, hinting at potential improvements.

retail sales experienced a notable decline of 1.2%

 compared to the previous month. This drop was significantly more than anticipated, surpassing market predictions of a 0.5% decrease. It seems that consumers are grappling with elevated prices, constraining their willingness to spend on non-essential items.

The annual inflation rate for July was reported at 

6.8%, a decrease from the previous month's 7.9%

. Nevertheless, this figure remains significantly higher than the Bank of England's medium-term target of 2%.

Furthermore, the broader economic situation across Europe is also giving rise to concerns. Inflation levels in the region remain elevated, while economic growth struggles to exhibit substantial improvement.

Is Bitcoin's price influenced by broader macroeconomic events and stock market fluctuations?

Before the recent flash crash last Friday, market participants were discussing Bitcoins price stability amid a turbulent news cycle. For the past two-months, Bitcoin has been trading within a range of US$28-30k despite significant news events such as traditional financial institutions pursuing ETFs and regulatory shifts.

A recent report from CoinShares indicates that institutional investors have sold US$55 million worth of Bitcoin in response to the 

, resulting in a broader crypto sell-off. The anticipation of a forthcoming Bitcoin ETF, coupled with concerns about China's potential economic downturn, has compounded the situation. Lower summer trading volumes have made the market susceptible to larger trades.

Additionally, Bitcoin's recent price volatility has been linked to concerns that 

SpaceX's Elon Musk revealed a write-down of its cryptocurrency holdings

, leading to a dip during frenzied trading. This move is reminiscent of Musk's influence on the market, as seen with his previous comments and actions.

crypto ecosystem's is showing signs of strengths

, including improved hash rates, network growth, and increased Bitcoin addresses with substantial holdings. This lends credence to traditional finance's increasing interest in the crypto sector, marked by new products and services, which aligns with the trend of reduced-price volatility, benefiting all investors in the long-term.

Ethereum developers explain ‘zero-to-one moment’ that may let users run nodes on phones.

Ethereum is set to increase its decentralisation by implementing Verkle trees, a cryptographic technique that will significantly reduce the amount of data required to run infrastructure on the network.

Currently, Ethereum validator nodes — pieces of software that help process and confirm transactions — must store large amounts of data locally to prove transactions they add to the blockchain are consistent with those that came before. But with a cryptographic technique known among developers as Verkle trees, they will be able to create stateless nodes — infrastructure that doesn’t need a record of the blockchain’s state.

Ethereum core developer Preston Van Loon told DL News

 that stateless nodes would curtail the minimum requirement of between 500 and 800 gigabytes to run nodes to less than a single gigabyte. “The goal of Verkle trees is not to save space in a full node, but to allow users to run them without any state at all,” Van Loon said.

“This is the biggest zero-to-one moment for Ethereum,” fellow Ethereum core developer Marius van der Wijden told DL News. Once Verkle trees make stateless nodes possible and wallets incorporate them into their products, Van der Wijden said he expects Ethereum may grow from 10,000 nodes to “millions” of stateless nodes.

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Weekly Crypto Wrap: 31st August 2023