What can be expected if this is the end of interest rate hikes by the Fed? (+Pepecoin, USA does not want CBDC, and BTC Miners in Kazakhstan)

What happened this week in the crypto space??

GM! This is Mateusz Kara.

And you've just found the best place in the crypto space to know more about the blockchain industry. I'm also giving you updates on my biz.

In Today's edition:

1/ The Fed raised interest rates for the last time?

2/ Pepecoin: rapid rise and fall

3/ USA does not want CBDC

4/ Miners in Kazakhstan support the state budget

Sounds interesting? I think so.?

Let's dive deeper into the crypto rabbit hole:

1/ The Fed raised interest rates for the last time?

On Wednesday, the entire world of finance was waiting to see what the Fed would do. The Federal Reserve was supposed to decide on raising interest rates. They did raise rates, but only by 25 basis points, which could be seen as a somewhat weak signal. However, the statement describing the decision did not include any notes suggesting that there would be further interest rate hikes in the future.

If the cycle of rate hikes is now over, it would be great news for the cryptocurrency market. Interest rate hikes block the flow of new capital into the market, which is necessary to raise the valuations of digital assets and stocks.

The Fed may begin lowering interest rates later this year. The reason for this may be the growing problems of banks. Recently, we saw the collapse of another bank - First Republic Bank, which was taken over by JP Morgan.

However, the data on the job market is a potential obstacle to lowering interest rates. Unemployment in the US is at its lowest point since the 1950s, which is inflationary news that may make Jerome Powell and his colleagues wary of lowering rates. We will soon find out what decision they ultimately make.

2/ Pepecoin: rapid rise and fall

Recently, we have seen a renewed trend of investing in memecoins. I think this is a good time to warn investors that putting their savings into projects with such weak fundamentals can be very risky. Those who invested in Pepecoin have learned this the hard way.

Pepecoin is a memecoin that uses the popularity of a meme featuring a cartoon frog as its mascot. Based only on this, the price of this cryptocurrency increase by several thousand percent in a short amount of time. Its market capitalization peaked at $1.8 billion. However, soon after, a crash occurred, and the price of PEPE fell by almost 50 percent.

Remember, before investing your money in any assets, it is worth understanding their fundamentals and considering whether it is worth investing in them!

3/ USA does not want CBDC

Let's briefly move to the world of politics. There is an ongoing debate in the USA regarding the issuance of a CBDC. The number of opponents of such a solution is growing. They point out that a digital dollar could give the government great power over citizens.

The local authorities of North Carolina have decided to stand alongside Florida and also legally block the testing of CBDC in the state and the acceptance of digital dollars by public entities. The ban was voted for by a majority in the state House of Representatives. Now, the bill boycotting CBDC has reached the local Senate. If it is also passed there, everything will depend on the state governor.

Should we be pleased with the opposition to CBDC? Yes, because the model of digital currencies adopted by, for example, China can help in the surveillance of citizens and in controlling their expenses or even in easily blocking bank accounts.

It is worth remembering that CBDC is a state response to Bitcoin! It is even a denial of the idea of blockchain.

4/ Miners in Kazakhstan support the state budget

It turns out that mining can also be a good industry for the state budget. The authorities of Kazakhstan received a total of 3.07 billion tenges (about 7 million USD) in taxes from cryptocurrency mines throughout 2022. This is the result of a new law that regulated tax issues related to Bitcoin mining.

This year, the state is also making good money from mining. According to preliminary data, fees collected from cryptocurrency mines from January 1 to April 27 amounted to a total of 240 million tenges, or over 541,000 USD.

And that’s all for today. Thanks for your time, investors & Crypto Geckos! ?? ????

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Mateusz Kara