The US labor market might finally be cooling down!
A recent report by the Bureau of Labor Statistics has revised new job projections downward by 306,000 positions.
Given these signs of weakness, we must assume it will be more difficult for the Fed to justify further rate hikes. Of course, the job market is still displaying strong numbers for the year, so time will tell if the recent slowdown is sufficient to deter the Fed.
China’s Economy Faces Strong Headwinds
China, the world’s second-largest economy, is encountering troubles; last week, the Chinese yuan slid to its lowest level in 16 years, while the Hang Seng Index (HSI) has declined 20% from its January peak.
These issues can be attributed to several factors, including:
- The Chinese consumer economy is slowing down after a period of heightened activity earlier this year when COVID restrictions were fully lifted.
- China’s property market continues to grapple with significant challenges, with Evergrande recently filing for bankruptcy.
- Local government debt is soaring due to property-related investments that are now underperforming.
As one might expect, several major banks have downgraded China’s growth forecasts to below 5% for this year, casting doubt on the country’s 5.5% target.
Bitcoin Volatility is Back!
After months of relatively stable price action between $29K and $31.4K, BTC broke downwards on Thursday, falling almost 10% in a single day.
Typically, such significant moves require equally impactful narratives or news to support them, but in times of thin liquidity and heightened uncertainty, this requirement becomes less stringent.
And so, BTC experienced a sharp drop following an announcement by SpaceX that they had sold their ~$300M BTC holding.
Spectators should note that there’s a big difference between expressing intent to sell and having actually sold, but, well, here we are!
Noteworthy Mentions
- The Intersection Between Gaming and Crypto
As the digital landscape transforms, crypto and gaming are intersecting, ushering in an era where entertainment converges with value through commerce. In our latest research piece, we delve into the potential of merging these two industries—an alliance that could lay the groundwork for more advanced economic models rooted in incentives. For further insights, you can find the full article here.
Industry Shakers
Launched in its beta phase on August 11, Friend.tech enables users to convert their social presence into “shares” for sale to followers. Once purchased, these followers become shareholders with direct messaging access to the users. DefiLlama data indicates it garnered $1.12 million in fees within a day and $2.8 million since its debut. However, despite this initial momentum, Friend.tech’s long-term potential has come under scrutiny due to data privacy concerns, mandatory Ethereum deposits upon sign-up, and a vague developmental trajectory.
BNB, Binance’s native token, dipped to its lowest point in a year due to concerns over Russia’s sanctions and escalating regulatory challenges. The token reached around $204, levels last witnessed during the market downturn in June 2022. Moreover, Binance is contemplating legal action against Checkout after the latter terminated their partnership as a payment service provider to the exchange.
Canadian e-commerce giant Shopify (NYSE: SHOP) has integrated Solana Pay, enabling users to transact instantly with cryptocurrencies like USDC. Starting with USD coin stablecoin payments, the platform plans to broaden its support for more crypto assets. This initiative underscores Shopify’s commitment to expanding crypto payment options for businesses on its platform, as reported by TechCrunch.