🔑CryptoKey Newsletter | State of the Industry

Welcome to another installment of the CryptoKey Newsletter! Below are some key updates and developments in the world of crypto, macro and TradFi.

• Tether buying BTC in size

• EU regulation advancements

• Visa making advancements in crypto

• Fed nearing end of hiking cycle

• CPI decreasing

Tether buying #BTC in size: 

Tether has announced they will be allocating 15% of profits towards BTC purchases to bolster the org's balance sheet. This certainly does not hurt future price action for #BTC bulls. I expect to see more companies, organizations and individuals in the future adopt a similar approach and allocate small amounts of their balance sheets and portfolios to Bitcoin. MicroStrategy is the extreme example of this (basically transitioned to a levered Bitcoin fund of sorts) lead by the king BTC mega-bull, Michael Saylor. That said, dipping a few % into Bitcoin will more than likely become a common strategy as the industry legitimizes over time.

EU making advancements on regulatory framework: 

While the US continues to be bogged down by the SEC and Rat Boy Regulator, Gary Gensler, Europe continues to make progress as the emerging crypto regulation hub for the rest of the world.

Europe continues to lead by example and seems to be capitalizing on the US regulatory systems' shortfalls, crypto bounty hunters and individual political agendas. The EU is attracting the migration of the world's largest crypto firms, such as Circle and Coinbase who have expanded operations across the pond.

My hope is that regulatory progress elsewhere will signal that the United States needs to pick up the pace and is completely dropping the ball as the world financial leader. It is still our race to lose imo, however things need to change and the current administration has been difficult to say the least.

Organizations such as the Digital Chamber of Commerce and countless others are making progress at the State and National level and deserve some praise and attention for their efforts.

The Fed nearing the end of their hiking cycle: 

After jacking up interest rates in order to combat inflation, the Fed appears all but finished on their current rate hiking crusade. An eventual pause or pivot will greatly impact market trajectory, however the path to get there is a smokescreen of speculation at this point.

CPI decreasing MoM: 

Some good news is that CPI continues to trend down, helping to alleviate some pressure on the Fed to keep raising rates higher & holding them for longer. President Chairman Jerome Powell has frequently stated that they will stay the course until the job is done (inflation is on a path back towards 2%). However, things are definitely getting spicy as the Debt Ceiling debacle continues to drag on…

Visa actively testing blockchain payments and deployment of smart contracts: 

The credit card giant Visa, is on the cutting edge of experimenting with various types of crypto payments and use cases. Expect to see more credit card companies doing the same and staying active on the front lines of blockchain technology and integrations.

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