The US and Europe give their two cents on how to commit to sanctions
without causing a surge in oil prices.
Or should I say they gave their three cents?
Considering the European Central Bank is following the Fed's lead
and plans to raise rates to combat--
you guessed it--
inflation.
And Ethereum dev creator Tim Beiko
says the test merge from Ethereum's longest running testnet to the ETH2 Beacon Chain
was smooth like butter.
♪ smooth like butter ♪
My name is Frankie Candles.
And this is your nightly crypto news wrap-up.
Let's get it!
The US and its allies are in a pickle,
new pickle, I should say,
committing to Russian sanctions without causing a crisis for global oil prices.
This week, Janet "No tellin'" Yellen said the US is in talks with European allies
to create a buyer's cartel and cap prices of Russian oil,
limiting the profits for Russia.
To stabilize prices, Russian oil will need to continue to be available to buyers like India and China.
With a mechanism put in place by Western countries to restrict Russian revenues,
the EU and the US have moved to ban Russian oil imports,
but Yellen says that this could dramatically raise global oil prices.
To solve this issue,
the G7 is looking to use insurers to set a price cap,
discussing the idea that insurance companies would cover Russian oil shipments
to non-European countries only if the price cap requirement is met.
US Treasury officials are traveling to the UK and other European countries this week
to discuss their next move.
Let's take a look at what Bitcoin's next move might be.
Hey, Frankie Candles.
What are the charts saying?
Frank, right?
Thanks, man!
Let's go ahead and do a little market watch here, guys.
We've got Bitcoin coming in at $30,157.
Down about a half percent for the day
Ethereum coming in at $1,795
Let's go ahead and check our top gainers.
Helium once again in the top gainers
Up 12% and 40% on the week
Killing it!
VeChain up 6% and 4% on the week
Chainlink up 6%
Polygon up 4%
And last but not least, we got THETA up 4%.
Guys,
Bitcoin continues to range sideways for--
we're at about a month of sideways action at this point.
I think we're going to make a break out or break down any day here.
Lower timeframes looking a little more bearish right now,
but the longer timeframes are looking bullish,
so maybe we have a little sideways bearish action before getting a break up.
If you guys are interested in trading,
you can follow me on YouTube at Frankie Candles or @Frankie_Candles on all socials.
Back to the news.
Thanks, Frank!
We love Frank's TA.
He's been spot on with some of the major price moves we've seen in the past few months.
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The European Central Bank, or ECB, plans to raise rates for the first time in over 10 years.
This comes after Euro zone core inflation numbers rose to 3.8% in May.
Until now, the ECB has had a negative interest rate,
with lenders being credited interest rather than interest needing to be paid out by borrowers.
The good times may be coming to an end
as the ECB announced plans to raise its key interest rate a quarter of a percent point in July
and then possibly again in September.
From there, expecting a gradual but sustained path of future increases in interest rates,
the ECB is seeking to end its aggressive bond buying program on July 1 as well.
The moves are still being described as dovish,
but the outlook is sending a more hawkish message.
The ECB is preparing the market for a series of rate hikes
until they can get inflation under control,
which they forecast as jumping to 3.5% in 2023 and retreating to 2.1% in 2024.
Not surprisingly, European stock sold off following the announcement,
with Stoxx Europe 600 pulling back 1.4%.
This shift is showing how inflation is becoming a global issue
affecting advanced economies equally as we experience the same economic pressures.
Lockdowns in China
The war in Ukraine
And let's not forget the printing of fiat currency that's backed by nothing
And government handouts during the pandemic
European investors are pricing in five quarter-point rate hikes by the end of the year.
Ethereum came out with some good news on Wednesday
successfully merging its longest running testnet Ropsten
with Ethereum's proof-of-stake Beacon Chain.
The test ensured that software running on Ethereum was stable
and ready for final transition to proof-of-stake.
With Ethereum Foundation's Tim Beiko saying that the network is now stable
and ready for what the Ethereum mainnet will execute this fall.
When Ethereum moves to proof-of-stake,
transactions will be verified by staked Ether rather than energy-consuming proof-of-work mining.
More test runs are in the works before the final rollout,
with Goerli and Sepolia testnets still to be used
bringing the code closer to what will be used when the ETH 2.0 mainnet goes live.
Next steps are set to be discussed during this Friday's AllCoreDevs call.
It's becoming obvious that the world has a money problem,
with soaring global inflation and gas prices running out of control.
We're so tied up in the global supply chain.
Fiat currency is showing its true colors,
while Ethereum is showing how reliable is blockchain can and likely will continue to be.
That's why you'll see me putting my bets on crypto.
That's all I got.
Be blessed.
Frankie Candles out.