1 min readFed Chair Powell's recent comments suggest that the latest inflation readings “add somewhat to confidence” that inflation is moving towards their 2% target.
Following these remarks, the treasury yield curve began to re-steepen whilst the Dollar Index (DXY) dropped by 1.3% since the CPI readings, fuelled by former President Trump's statements about the dollar's strength negatively impacting US exports. Fed fund futures are now fully anticipating a rate cut in September, with another likely in either November or December supporting a rally in crypto prices.
The digital asset market has seen substantial investment inflows, totalling $1.4 billion recently, with year-to-date inflows reaching a record $17.8 billion. Bitcoin alone attracted $1.35 billion, while short Bitcoin products saw outflows of $8.6 million. Asset managers are poised to submit their final filings for Ethereum ETFs, with potential launches expected on Tuesday, July 23rd, pending SEC approval.
In the equities market, Bitcoin miners are gaining traction for their potential in mining, AI deals, or acquisitions, primarily due to their power generation assets. Notable examples include CleanSpark's acquisition of GRIID Infrastructure, Riot's attempts to acquire Bitfarms, and recent rumors of Cipher Mining exploring a sale, alongside numerous high-powered computing deals. As a result, we have observed an expansion in their enterprise values, an improvement in their capital structures, and enhanced access to capital, further strengthening the industry’s prospects.
