Economic Waves: CPI Inflation

Wave #2

Author

Jaas
August 14, 2024

Wow, what a week it's been!

After last week's dip, the crypto and equity markets have found their footing again, with the S&P 500 making an impressive 7% comeback! But don't let that fool you—investors are still playing it safe, pouring money into bonds and money markets. Today, all eyes are on the US and UK inflation data, which will be pivotal in shaping future monetary policies. And don't forget, the FOMC minutes dropping on Wednesday will be a major clue for what the Federal Reserve has in store for September. On the global stage, central banks have flipped the script, moving from rate hikes to rate cuts—35 cuts in just three months across big players like Switzerland, Canada, Sweden, the EU, and the UK! The US Fed is expected to join the party with a rate cut on September 18th. The timing of these cuts is everything—they could stave off a recession, keep the bull market charging ahead, or even spark a market rally, all while making borrowing cheaper and brightening the financial horizon. Get ready, because things are about to get interesting!

This week, our Technical Analysis covers BTC and SOL. We cover $TNA $SLV on stocks. Follow the detailed plans carefully and pull the trigger only at the recommended levels. Finally, we provide updates on trading exchanges, Crypto and the AI sector. Enjoy, and good luck out there.

The Board

The Wave

We rode the wave!

  • BABA - BABA at 78.03, called the long to 82, and it rode high to 81.50. Surf's up!

  • BTC - We dove in at $55k, eyeing key resistance at $60k and $65k, and rode the BTC wave all the way to $62.5k. Surf's up!

  • ETH - Eth at $2344, watching for the surge, and rode the Ethereum wave all the way to $2740. Surf's up!

  • SOL - We caught the Solana wave at $144, and it cruised up to $162.8. Surf’s up!

Stock Market

Technical Analysis:

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$SLV

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Crypto

Technical Analysis

BTC

Bitcoin has shown resilience this past week, rebounding from its lows to cross the $60k mark, driven in part by Marathon Digital's announcement of a $250 million investment in Bitcoin. Since breaking above $60k last Thursday, the market has been moving sideways, testing both sides of this level. However, the bulls seem to be gaining the upper hand, as Bitcoin successfully reclaimed the $60k mark on Tuesday after a failed breakdown below this level.

For those looking to enter the market, a more aggressive approach could involve buying in the mid-to-high $59k range with a tight stop-loss below $58.3k.

SOL

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SOL has shown strong resilience, especially after the recent market liquidation, making it a more attractive long position compared to ETH and BTC during market dips. We're looking to enter between $135 and $150, with a stop loss at $130 to manage risk. The positive sentiment, supported by a solid weekly close, suggests SOL could continue to outperform other major cryptocurrencies, with targets at $165 and $180. However, if SOL drops below $135, it could revisit lows around $110, which is why the stop loss is tight. Scaling in at $135 and adding on dips may help optimize the risk-reward ratio.

Ocean views

This Weeks Earnings

SEC Ramps Up Crypto Crackdown, Subpoenas Three Leading VC Firms

The U.S. Securities and Exchange Commission has ramped up its enforcement in the cryptocurrency sector, issuing subpoenas to at least three major venture capital firms. This move is part of a larger investigation into whether these firms acted as statutory underwriters, potentially breaching securities laws by distributing unregistered tokens to the public. The SEC aims to determine if these VCs were involved in marketing or reselling digital assets, which could legally classify them as underwriters. This action is the latest in a series of regulatory measures targeting significant crypto entities, indicating a broader effort to oversee institutional investors' roles in the crypto market.

Marathon DigitalPlans $250M Convertible Note Sale to Expand Bitcoin Holdings

Marathon Digital Holdings, the world’s largest Bitcoin mining company, is planning to raise $250 million through a private offering of convertible senior notes. These notes, set to mature on September 1, 2031, with semiannual interest payments, are primarily aimed at increasing Marathon's Bitcoin holdings. The raised funds will also support general corporate initiatives, including working capital, strategic acquisitions, and debt repayment. This move aligns with Marathon's strategy to bolster its position as a leading Bitcoin holder, having already accumulated over 20,800 BTC, valued at approximately $1.2 billion​

El Salvador Secures $1.62 Billion Investment for Seaports and Bitcoin City Development

El Salvador has secured a groundbreaking $1.62 billion investment from Turkish company Yilport, marking the largest private investment in the nation's history. This funding will revolutionize the Acajutla and La Union seaports, with La Union strategically located near the proposed Bitcoin City—a tax-free haven powered by volcanic energy for Bitcoin mining. This monumental investment, a direct result of President Nayib Bukele’s diplomatic efforts, is set to create thousands of jobs and significantly enhance local infrastructure. Despite delays in the original Bitcoin bonds plan, El Salvador is actively exploring alternative funding avenues, including partnerships with Tether and a “Freedom Visa” program. The revitalization of La Union Seaport is a pivotal move towards realizing Bitcoin City, positioning El Salvador as a leading global cryptocurrency hub.

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