Written by Marcos Sotero, Analyst In the digital asset broker listed on the stock exchange GlobalBlock
After falling less than 5% on Tuesday, Bitcoin is hovering above $23,000 at the time of writing, then Coinbase earnings in the second quarter Released. They reported a 63% drop in revenue in the second quarter, which resulted in a loss of $1.1 billion from a year ago, even though its monthly turnover rose from 8.8 million to 9 million. This also shows how macroeconomic impact has been on many cryptocurrency exchanges over the past few months.
Coinbase also predicted that over the next three months its user base will continue to decline. US CPI data (released on Wednesday at 1.30pm UK time) will play a big role in determining whether or not we will continue to see crypto users actually drop over the coming months.
The CPI is expected to be 8.7% – if the number released is lower than this number, I expect a rally in cryptocurrencies and stocks. I think any number less than 9.1% is promising, as this was another month’s CPI number, and would signal the beginning of a stabilization phase with inflation. In that case, the Fed may be tempted to become less aggressive at its upcoming FOMC meeting in September, which the market will be excited about.
Hacks have become more and more prevalent in the crypto space over the past couple of years, as the industry has grown exponentially. Yesterday, Curve Finance, a well-established DeFi protocol, was hacked, with $570,000 stolen.
In this case, Curve Finance’s DNS (DNS maps readable website names to IP addresses) has been hacked. Hackers have modified the DNS-translated IP address of http://curve.fi. They provided their server IP address, and created a matching web application. Then they created new money-stealing smart contracts, so users would approve transactions that steal their money.
This is an example of how important it is for users within DeFi to be fully aware of the protocols they are using. People could have protected themselves if they scanned all the smart contracts they interact with.
#todays #CPI #data #bullish