Market report: Regulation in the EU area, attack on Binance Smart-Chain

Market report: Last Wednesday, the European Council voted in favor of the MiCA crypto template, which was discussed in detail. The new regulation is expected to come into force in 2024. Apart from the regulation of trading in cryptocurrencies, the handling of stablecoins and the role of service providers in the crypto industry should also be clarified. From the perspective of the currently very vague legal environment, this regulation is viewed positively for the most part, as it creates clarity. It is quite possible that it will also be used as a model for other countries.

On October 7th, the Binance smart chain was stopped due to a bridge hack . The target of the attack was the “BNB Token Hub”, which represents the bridge between the BNB Beacon Chain (BEP2) and the BNB Chain (BEP20 and BSC). The damage is estimated at around USD 100 million. However, since these are only additionally created tokens, the assets are safe according to Binance CEO Zhao. In addition, tokens worth USD 7 million have already been frozen.

On Friday, Huobi Global announced that it had accepted an offer from Hong Kong-based About Capital. This sale is for founder Leon Li’s block of shares (60%), who is said to receive USD 1 billion for his shares. However, the details of the deal are not known.

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Market report in detail

Why the FOMC Minutes Matter: The day before the latest inflation figures are released, the ‘notes to the file’ from the previous FOMC meeting are released to the general public. The log The Federal Open Market Committee (FOMC) report is typically released three weeks after the day of the policy decision. Investors are looking to this release for clues to the political outlook in addition to voting patterns. A bullish tone should boost the dollar, while a dovish stance is seen as USD negative. It should be noted that the market reaction to the FOMC Minutes could be delayed as, contrary to the FOMC Policy Statement, the news outlets do not have access to the release prior to its release.

September CPI Figures: Investors will get more clarity on inflation on the day as September CPI is due on 10/13/2022. CPI was down on a monthly basis in August, but remained ahead of expectations. Investors are hoping for a continuation – 8.1% are expected – of this development in September. However, core inflation is expected to rise again (6.5%) compared to the previous month (6.3%). This key figure is systemically relevant because it depicts the purchasing power of the average consumer more “realistically”.

DXY: Anticipation of a local top around 114.5 in the foreseeable future remains intact. We’ve seen more turbulence in the S&P500; in contrast, crypto assets were more stable. The major indices show a good buy level for the midterms (November 8th). We continue to expect the support zones cited above to be tested in advance.

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