Weekly Roundup in Financial Markets: Latest Moves by PayPal, Google, and the Fed

This week has seen big shifts in crypto and the markets. Google Cloud launched a new service for Ethereum, showing its growing interest in blockchain technology. PayPal has chosen Solana as its $PYUSD stablecoin platform, driving more attention to Solana’s ecosystem. Meanwhile, the Federal Reserve cut interest rates for the first time in four years, affecting both crypto and traditional markets, impacting the prices and demand for Bitcoin and Bitcoin ETFs in response.

Key Takeaways?

• Kamala Harris Promises Support for AI and Crypto Investment in First Presidential Campaign Speech, as the industry hopes for a shift from Biden’s Approach.?
• Google Cloud Introduces Ethereum-Compatible Blockchain RPC Service.?
• PayPal chooses Solana as the blockchain for its $PYUSD stablecoin.?
• The Fed has lowered interest rates for the first time in over?four years by 50 bps, to the range of 4.75%-5%.??
• Federal Reserve Chair Jerome Powell will soon comment about last week’s interest rate cut.?

Crypto Ecosystem??

• Google Cloud has launched a new Blockchain Remote Procedure Call (RPC) service designed for Ethereum, aimed at simplifying developer interactions with blockchain data and enhancing the stability of decentralised applications (dApps). Currently available for Ethereum’s mainnet and testnet, the service will expand its support to additional blockchain networks over the coming year.??
• PayPal's PYUSD stablecoin has experienced significant growth following its launch on the Solana blockchain, with analysts attributing this surge to the appealing DeFi incentives provided by Solana protocols.?
• Fusewallet has announced Pay, a virtual Visa card that allows users to spend stablecoins directly from their self-custody wallets on Solana.?
• London’s fintech leader, Revolut , is working on developing its own stablecoin, aiming to reinforce its position as a crypto-friendly fintech.?
• Bitcoin ETFs have reached a record inflow of $150 million, following Bitcoin’s price rebound to $64,000 for the first time this month.?

Macroeconomic Climate??

• As U.S. inflation data shows signs of cooling, the market is anticipating a 50% chance of an additional 25 bps cut at the next Federal Reserve meeting.?
• According to Powell's statements, the Federal Reserve has revised its projections after the first rate cut in four years, lowering the 2024 GDP forecast to 2.0%, raising the unemployment rate to 4.4% from 4.0%, and reducing the core PCE inflation forecast to 2.6%.?
• The Bank of England has announced that it is keeping the interest rate steady at 5%, which has driven the Pound Sterling to its highest level since March 2022, slightly surpassing 1.33.?
• The Japanese central bank decided to keep interest rates unchanged in the range of 0.15%-0.25%, as widely expected.?

Charts Analysis??

Gold

• Gold is currently in a strong uptrend, indicating bullish momentum, particularly following the recent 50 basis point cut in US interest rates.??

• It approaches the potential psychological resistance area at $2,650.?

• Key support levels are identified at $2,600, $2,584, and $2,526. These levels will be crucial for maintaining bullish sentiment and could act as potential reversal points if price action falls.?

EURUSD?

• EUR/USD is facing selling pressure and falling towards the support level of $1.10735.??

• This is driven by September’s poor Eurozone Purchasing Manager’s Index (PMI) and a slight recovery in the U.S. Dollar Index (DXY).?

• $1.1200 is a key resistance area for Euro bulls. If the Euro breaks above this level, it could move toward the July 2023 high of $1.1276.??

• On the downside, the key support level is $1.1000.?

Bitcoin??

• Bitcoin’s value has increased by over 10% after the Fed cut rates last Wednesday. It’s currently trading within a rising trend channel in the short term, indicating a consistent upward momentum.?

• It has marginally broken above the resistance level at $64,000 last week. An additional confirmed break above this level could signal further upward movement in price.?

• On the downside, the next support level is at $62,243. If Bitcoin breaks through this level, it will most likely drop to the next support level at $57,907, offering investors the opportunity to buy at lower prices.?

Ethereum??

• Ethereum gained 5.28% in September and is currently trading above the key support level of $2500.??

• If the digital asset confirms a break above $2600, Ethereum could move for the next key level near $2900.?

*Disclaimer ??

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