The Morning After – THURSDAY MARKET UPDATE – Bitcoin (BTC/USD), (LUNC/USD) – Benzinga

Good Morning Everyone!


Prices as of 4 pm EST, 9/21/22; % YTD


MARKET UPDATE

Fed lifted interest rates by expected 75bps

  • Third consecutive 75bps hike

  • Powell signaled more to come

  • Comments more hawkish than expected

  • “The chances of a soft landing are likely to diminish to the extent that policy needs to be more restrictive, or restrictive for longer”

  • Current: 3.00-3.25%

  • Median forecast has rates hitting 4.4% by end of 2022, 4.6% in 2023



  • New Dot Plot:

Bond Market reaction

US Q2 Current Account – deficit narrows

Initial jobless claims – labor market still strong

10 am EST – Conference Board Leading Economic Index (LEI)

Crude $83

Earnings

  • Accenture ACN

  • Darden Restaurants DRI

  • FactSet FDS

  • Manchester United MANU

CRYPTO UPDATE

Stablecoin regulations: US vs. EU

  • In the US, new bill would criminalize creation/issuance of algorithmic stablecoins (think Terra LUNC/USD)


    • Panel could vote as early as this week

    • Some existing stablecoins concerned, uncertain if they fall in this category

  • In the EU, new draft of the markets in crypto-assets (MiCA) regulation removes limitations on stablecoins



Lockstep: Bitcoin and S&P 500


MEME OF THE DAY