Analysts have called for a U.S. recession all year, but stocks continue to creep higher. Here are three metrics investors can watch to know if an economic downturn is coming.
Danielle DiMartino Booth, holding the dual roles of CEO and chief strategist at QI Research, foresees that the 22-year peak in interest rates set by the Fed is merely a precursor to what’s to come. She anticipates further upheaval within the banking industry. The strategist articulated her belief that we have not yet witnessed the “full damage” wrought by the rate increases and their subsequent impact on the U.S. economy.
This year marked a tumultuous period in the U.S. banking industry, with three of the largest bank failures in American history occurring in just a few short weeks. Then, last Friday, the Kansas banking regulator took action by shuttering Heartland Tri-State Bank. Much like the three aforementioned banks, this financial institution was placed into receivership with the Federal Deposit Insurance Corporation (FDIC).
On July 27, 2023, Danielle DiMartino Booth, CEO and chief strategist at QI Research, made an appearance in a video interview with Kitco News’ lead anchor and editor-in-chief, Michelle Makori, sharing insights about the predicted turbulence ahead. In the conversation, DiMartino Booth shed light on the recent ‘forced’ merger between Pacwest and Banc of California, attributing the fallout to “Federal Reserve policy.”
She informed Makori, “After First Republic, the assumption in the investing community was that Pacwest would be the next bank to go. So what we’re seeing is something that is slow-moving in nature, but if you’re having forced marriages, and JPMorgan announcing that it’s going to be buying $2 billion of mortgages from this brokered deal, we’re clearly still in a situation with tightening lending standards.”
DiMartino Booth explained that a “slow-rolling recession” is encroaching, and she argues that the reverberations of the Fed’s elevated rates will wreak further turmoil in the economy. Other financial experts and analysts share her sentiments, including gold enthusiast and economist Peter Schiff, as well as Rich Dad Poor Dad author Robert Kiyosaki.
In a recent research paper unveiled on the Social Science Research Network, it was revealed that 186 U.S. banks are teetering on the edge of failure, imperiled by a considerable volume of uninsured deposits and the Fed’s towering interest rates. “I don’t think that we have seen the full brunt, the full outcome, the full damage that rate hikes past are going to take on the economy,” DiMartino Booth conveyed to the show host.
The chief strategist at QI Research added:
The New York Federal Reserve put out a survey just a few days ago that indicated that lenders that extend credit for mortgages and auto loans and credit cards, that they foresee going out into the future, the highest rejection rates for U.S. households in the history of them doing business.
DiMartino Booth went on to express her anticipation that American banks are poised to reel from the collapse of commercial real estate. At present, the QI CEO discerns a great deal of “pretending” transpiring within the commercial real estate industry. Demonstrating her faith in precious metals, the strategist holds a bullish stance on gold, while maintaining no exposure to U.S. stocks. Furthermore, she noted that her current allocation in gold surpasses what she would typically assign to the asset.
What do you think about DiMartino Booth’s commentary? Do you share the same sentiment about the U.S. economy? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin miners make moves in preparation for the BTC block reward halving which is scheduled for April 2024.
Bitcoin’s record low volatility is also a sign that the next price breakout will be volatile, but everyone is guessing which direction the price will go and how it will impact altcoins.
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According to recent Bitcoin data, the count of pending transactions, still awaiting confirmation, has plummeted beneath the 300,000 mark, while onchain fees have seen a reduction over the past week. Starting from July 29, the average onchain fees have fallen below the $1 threshold for each transaction, and as of July 31, 2023, the average fee stands at 0.000026 BTC or $0.778 per transfer.
On Monday, July 31, 2023, figures from bitinfocharts.com reveal that the average onchain fee on the Bitcoin blockchain has tumbled below $1 for each transaction. As it stands, the average fee on Monday measures at 0.000026 BTC or $0.778 per transaction, and the median-sized fee is 0.0000085 BTC or $0.251 per transfer.
Back on July 27, the average onchain fee stood at $1.482, and from that point, it has declined 47.5%, while median-sized transfer fees on the Bitcoin blockchain have decreased by 57.88% since that day.
Data captured on Monday reveals that the number of unconfirmed transactions has fallen beneath the 300K threshold, with precisely 291,721 pending transactions as of 8:08 a.m. Eastern Time on July 31. In addition, metrics from mempool.space indicate a decline in fees to $0.33 per transaction.
To clear the entire backlog of 291,721 pending transfers, equivalent to 185 megabytes (MB), around 100 blocks must be mined. The average block time has hovered close to or even under the ten-minute average, standing at 8 minutes per block.
Miners have recently witnessed a 2.94% reduction in difficulty, simplifying the process of uncovering BTC blocks compared to the time before block height 800,352. As of Monday, current statistics demonstrate that the hashrate is smoothly cruising at 425.65 exahash per second (EH/s).
Leading the pack in mining pools today is Foundry USA, commanding a robust 111.18 EH/s, closely trailed by the second-largest pool in terms of hashrate, Antpool, with 88.42 EH/s. Throughout this week, approximately 44 mining pools are contributing their SHA256 hashrate to the Bitcoin blockchain.
What do you think about Bitcoin’s fees dropping and the number of unconfirmed transactions? Share your thoughts and opinions about this subject in the comments section below.
PRESS RELEASE. Swisstronik, the layer-1 network for developing scalable dApps which safeguard and maintain privacy for users’ data while remaining regulatory compliant, is excited to announce the launch of its first testnet. Swisstronik Testnet 1.0 is now available, offering dApp developers powerful encryption and enterprise-grade transaction security through Intel SGX technology. Simultaneously, Swisstronik’s first Bug Bounty is launching, with rewards reaching up to $31,000 per bug found.
Why join Swisstronik’s Bug Bounty?
With 750+ applications already received for early access to Swisstronik’s Testnet 1.0, it seems clear that this is a great opportunity any Web3 developer should explore. But earning rewards of up to $31,000 per reported bug (paid mostly in USDT) is not the only reason to join.
By supporting Swisstronik, developers also help the crypto community stay true to the decentralization spirit while adapting to the new crypto regulations that transform the industry as we speak. They can contribute to a more balanced Web3 where KYC and other user verifications don’t lead to personal data losses or dependence on centralized parties; where dApps can truly be integrated into the real world by using Swisstronik as a compliant bridge. And since this is their first Testnet ever, chances are even newbies could find some bugs.
After the Bug Bounty 1.0 closes on September 15, 2023, developers can expect the second Testnet and Bug Bounty to go live in the autumn with an even higher reward pool. Later, a Grant program for developers will also be launched to encourage app development within the Swisstronik ecosystem.
What will Testnet 1.0 achieve?
This release establishes the groundwork for creating compliant yet private decentralized applications (dApps) that are also Ethereum-friendly and provide developers with ease of access. Testnet 1.0 focuses on the core blockchain, without the Decentralized Identities block, but with the first of two planned data security levels.
The adoption of Intel SGX technology is central to Testnet 1.0, ensuring top-tier encryption and security within the Swisstronik ecosystem. All interactions with nodes, including transactions and queries, are kept secure through encryption, safeguarding data integrity and privacy throughout the network. By leveraging Intel SGX enclaves, transaction details remain protected even from the nodes, significantly enhancing the privacy and security of the Swisstronik blockchain. This feature is extremely important, especially when dealing with sensitive user information like KYC data which has often been the subject of many digital exploits in the past.
Moreover, Swisstronik focuses on interoperability from day one. Its Testnet 1.0 supports the Ethereum Virtual Machine (EVM) for seamless transitioning of Ethereum-based applications and smart contracts to the Swisstronik ecosystem. As the platform evolves, it aims to also integrate with the Cosmos network using the Inter-Blockchain Communication (IBC) protocol, ensuring a more scalable and interconnected decentralized experience. This strategic integration opens up new horizons for blockchain innovation, promising technical possibilities and seamless cross-chain interactions.
Understanding Swisstronik
Swisstronik is the first blockchain platform that enables anyone to create compliant yet private dApps with no legal knowledge and minimum coding required. This is made possible by a previously unseen combination of two functionalities.
The first one is Swisstronik’s Web3 Compliance Suite: the first of its kind. Swisstronik Compliance Suite is a self-regulating network that brings together international regulators, KYC issuers, and other legal service providers, similar to a DAO. They collaborate to adapt the Swisstronik system to local regulations in real time and consult the builders on internal compliance issues. As a result, Swisstronik-built apps are inherently compliant, even as regulations change.
Secondly, thanks to zk-SNARKs and Intel SGX, KYC, AML, and other user verifications can be performed on the Swisstronik blockchain in a private and secure manner.
As a result, by launching on Swisstronik or integrating one of its utilities in their apps on other chains, Web3 companies can become KYC, AML, and DPR compliant at a low cost. Finally, users can be confident that their data will remain private and secure even during identity verification.
Visit Swisstronik’s official website and Github for more information on the Bug Bounty program. Also, follow their Twitter for timely updates.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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