Daily News | Twitter Unveiled a New X Logo, Worldcoin Officially Launches WLD Tokens, Bloomberg Predicts that the Fed will Suspend Interest Rate Hikes after July

Crypto Daily Digest: Twitter bid farewell to the “Blue Bird” era, Worldcoin officially launched WLD tokens, and BTC HODLers’ holdings reached a historic high

According to the official Twitter account page, the account has changed its avatar to the X logo, and the account ID has also been set to ‘X’. Musk stated that the Twitter brand will gradually bid farewell to the “Blue Bird” image and replace it with the X logo.

Musk changed his personal Twitter account profile to the “X” logo. Musk tweeted on July 22 that X.com has linked to Twitter and will launch a temporary X logo today.

With Elon Musk announcing plans to rebrand and replace Twitter’s iconic Blue Bird logo with the X logo yesterday, several tokens marked with “X” were launched overnight and saw abnormal growth.

After Musk tweeted, some speculative developers issued new tokens over the weekend, with one token named “AI-X” (with the same logo as Musk’s space technology company SpaceX) rising tenfold, and the other token named “Deus X” soaring 2600%.

Professional traders stated that this Optimism exists because mainstream currencies such as BTC and ETH are experiencing low volatility, forcing some market participants to bet on meme coins and low market cap cryptocurrencies.

Yesterday, Worldcoin officially announced the launch of WLD tokens, which will be distributed to over 2 million people worldwide. In the statement, Worldcoin promised to accelerate registration by deploying Orbs in over 35 cities in 20 countries worldwide.

Individuals who pass Orb verification will initially receive 25 WLD tokens and future regular grants. The exact token economics of the project is expected to be announced later on Monday. Due to regulatory uncertainty, WLD will not be able to be used in the United States.

According to the World App page data, the Genesis Grant round has been opened for claim, with an opening period from July 24 to July 31. Unverified iris users can still pre-claim 25 WLDs, which will be retained for 365 days. pre-claim users can transfer out their WLD tokens after completing iris verification. As of publication, 3703 users have completed pre-claim, with a maximum of 1 million claim users; 3405 users have completed the claim.

It is reported that the project is one of the most controversial projects in the crypto field. Its focus is to help people personally verify their credentials through the iris scanning ball to prove their identity online. More than 2 million people (most of whom come from countries in the southern hemisphere) have passed verification, and today they will all receive their rightful share of WLD tokens.

According to the token economics released by Worldcoin, 75% is allocated to communities, 9.8% to teams, 13.5% to TFH investors, and 1.7% to TFH reserves. The initial circulation was 143 million, including 100 million loans to market makers, and more than 43 million WLD tokens were allocated before the release. Inflation is 1.5% per year and is expected to start in 15 years.

Glassnode’s weekly data report shows that long-term holders of Bitcoin (i.e. wallet addresses holding Bitcoin for at least 155 days) now control three-quarters of Bitcoin’s circulation supply, with a record high in holdings.

Glassnode data shows that the balance in these wallets increased by 62,882 BTCs ($1.83 billion) this month, reaching a record high of 14.52 million BTCs, surpassing the peak of 14.48 million BTCs on May 21. This new high means that such holders have 75% of the current supply of 19.437 million Bitcoins.

Glassnode tweeted, “it indicates that among mature investors, HODLing is the preferred market dynamics.” Entities with insufficient liquidity or online participants with almost no history of spending control the Flow rate of funds into wallets, which indicates that user accumulation in the market continues and seller pressure continues to weaken. This month, the number of Bitcoins held by these illiquid entities has surged by over 90,000.

Today’s Main Token Trends

BTC

In the short term, the price dropped below $29.5K USD with increased trading volume. The next support to watch is at $28,535 USD, and there is a possibility of a retracement in the larger uptrend. For the bullish strategy, it is advisable to monitor the purple trendline; a break below it might signal the end of this year’s rebound trend. The key support level to hold is $28,535 USD.

ETH

In the short term, the trend has broken below the first support of the upward structure, and yesterday it saw a significant volume drop below $1,857 USD support. The bearish strategy suggests waiting for a rebound to $1,857 USD to initiate a short position targeting $1,755 USD. The short-term trend is bearish-oriented.

UNIBOT

In the short term, it may continue to decline along with the broader market. Pay close attention to the strong support at $103.03 USD. If there’s a sustained upward movement, the next targets are $213.18 USD, $289.19 USD, and $336.16 USD in sequence.

Macro: Bloomberg looks ahead to the weekly Fed’s interest rate decision and predicts a long-term pause in interest rate hikes after July

Bloomberg wrote an article looking forward to this week’s Federal Reserve FOMC interest rate meeting, stating that the Federal Reserve is set to raise interest rates by 25 basis points at its July meeting.

Since the mid-June meeting, mixed economic data may not have quelled the internal debate within the Federal Reserve about whether July’s rate hike should be the last.

Therefore, Powell’s speech at the press conference may cater to both doves and hawks.

He may point out that the economic outlook has become brighter, and the process of declining inflation is further advancing, which means that the path to a “soft landing” has been widened.

Taking into account the uncertainty of lagging monetary policy, he may suggest that the Federal Reserve may adopt a wait-and-see attitude at its next meeting while warning that some FOMC members still expect another rate hike this year.

Bloomberg’s benchmark scenario is for the Federal Reserve to maintain interest rate stability after raising interest rates in July, and then start cutting interest rates from the second quarter of 2024.

However, there are still some potential negative supply shocks that may reverse the inflation process, ultimately prompting the Federal Reserve to resume interest rate hikes by the end of 2024. The main risks include widespread labor strikes and global food price shocks caused by weather factors. “Presently, we describe the interest rate trajectory as a ‘prolonged pause in rate hikes’ after July, with very little chance of the Federal Reserve resuming rate hikes thereafter.”

In one word, given that recent economic data enhances the possibility of a soft landing, FOMC is unlikely to take significant action to change the situation. Powell will adopt a wait-and-see attitude, hinting that he will skip raising interest rates at the September meeting - we believe this ‘skip’ will become a prolonged inaction.