Powell’s policy shift is complete, BTC mining opportunity worth $74 billion

Headlines

▌Federal Reserve mouthpiece: Powell's policy shift has been completed

Nick Timiraos, the "Federal Reserve mouthpiece," posted on social media that today's speech showed that Powell's policy shift had been completed. Powell showed an overall dovish stance in his speech. Two years ago, he also said at the same time that the Federal Reserve would accept a recession as the price of restoring inflation.

▌JPMorgan Chase: Bitcoin mining opportunities are worth about $74 billion

According to the latest research report from Wall Street investment bank JPMorgan Chase, based on the current Bitcoin price, the potential value of the remaining 1.3 million Bitcoins to be mined is approximately $74 billion. The bank also lowered the target prices of CleanSpark (CLSK), Iren (IREN), Marathon Digital (MARA), and RiotPlatforms (RIOT) to reflect second-quarter performance and changes in Bitcoin prices and network computing power. JPMorgan Chase expects block reward revenue opportunities to be approximately $37 billion over the next four years, down 19% from early June but up 85% year-on-year. The bank expressed a preference for Iren and Riot Platforms, believing that the recent poor performance of these stocks provides investors with buying opportunities.

Quotes

As of press time, according to Coingecko data:

BTC's latest transaction price is $64,031.39, with a daily change of +5.8% ;

The latest transaction price of ETH is 2,760.33 yuan, with a daily increase of +5.1% ;

BNB's latest trading price is $590.60, with a daily change of +1.6% ;

SOL's latest trading price is $153.08, with a daily change of +6.4% ;

DOGE's latest trading price is $0.1131, with a daily change of +7.0% ;

XPR recently traded at $0.6091, with a daily change of +1.9% .

policy

▌Hong Kong International New Economy Research Institute: The virtual asset market will usher in a reshuffle, and some non-compliant U merchants and project parties may withdraw

Fu Rao, executive director of the Hong Kong International New Economy Research Institute, wrote an article in Ta Kung Pao titled "Improving the Supervision of Virtual Assets and Healthy Development of the Industry", pointing out that the Supreme People's Court and the Supreme People's Procuratorate of China jointly issued an interpretation on several issues concerning the application of laws in handling criminal money laundering cases, which clearly listed virtual asset transactions as one of the ways of money laundering, which will have the following impacts on the virtual asset industry: 1) Industry turnover is rising. The introduction of regulations means that practitioners need to pay more attention to compliance issues and increase compliance investment to ensure that their businesses are legal and compliant. The market will usher in a reshuffle, and some non-compliant U merchants and project parties may exit the market, further increasing the concentration of the industry. 2) Investor education is strengthened. The introduction of regulations will prompt investors to pay more attention to the risks of virtual assets and improve investors' risk identification capabilities. 3) Industry supervision is gradually improving. The release of this judicial interpretation will help regulatory authorities to more effectively supervise the virtual asset industry and promote the healthy development of the industry. As Hong Kong vigorously develops the virtual asset economy, the mainland will first respond to the serious crimes that virtual assets are most likely to cause. In this context, both U merchants and ordinary investors should raise their legal awareness, ensure transaction compliance, and avoid falling into legal risks.

Blockchain Applications

▌ Sui Liquidity Protocol DeepBook Releases V3 Testnet

On August 23, Sui liquidity protocol DeepBook released the V3 testnet, in which transaction gas costs were reduced by 60%, allowing market makers and traders to share liquidity between pools, and introducing DEEP tokens, allowing users to obtain fee discounts, market maker incentives and governance functions. The V3 testnet will run for two weeks, and users who participate in the testnet can receive incentives.

▌ Gate.io and EVG reach strategic cooperation to promote the global application of Web3 technology

On August 23, according to official news, Gate.io, the world's leading cryptocurrency exchange, announced a strategic partnership with Everest Ventures Group (EVG), a Web3 operating group, to accelerate the application and development of Web3 technology in the global market. This partnership will leverage Gate.io's platform resources and global user base to open up markets for high-quality projects in the EVG ecosystem and further promote the innovation and popularization of blockchain technology. Dr. Han Lin, founder and CEO of Gate.io, said that this partnership will accelerate the growth of Web3 projects with global potential, and looks forward to working with EVG to create an ecosystem that benefits global users. Allen Ng, co-founder and CEO of EVG, said that the partnership with Gate.io will provide important support for its next-generation consumer products to enter the global market and help promote the comprehensive promotion of Web3 technology.

Cosmos announced on the X platform that Ethereum’s second-layer network Starknet has been integrated with the Cosmos Interchain. By integrating Starknet, application composability across different L2 and L1 will be achieved, thereby accessing the broadest on-chain ecosystem.

Cryptocurrency

▌Ethereum spot ETF had a total net outflow of $874,600 yesterday, continuing its net outflow for 6 consecutive days

According to SoSoValue data, yesterday (August 22, Eastern Time), the total net outflow of Ethereum spot ETFs was $874,600. Yesterday, Grayscale Ethereum Trust ETF ETHE had a net outflow of $19.8427 million, and the current historical net outflow of ETHE is $2.523 billion. Grayscale Ethereum Mini Trust ETF ETH had a net inflow of $3.6837 million in a single day, and the current historical total net inflow of Grayscale Ethereum Mini Trust ETH is $236 million. The Ethereum spot ETF with the largest net inflow in a single day yesterday was Fidelity ETFF ETH, with a net inflow of $14.3303 million in a single day, and the current total net inflow of FETH in history is $390 million. The second is Grayscale ETF ETH, with a net inflow of $3.6837 million in a single day, and the current total net inflow of ETH in history is $236 million.

AVAX breaks through $26

The market shows that AVAX has broken through $26 and is now trading at $26.01, with a 24-hour increase of 11.82%. The market is volatile, so please do a good job of risk control.

Blockchain Association and DeFi Education Fund warn of privacy issues with SEC’s consolidated audit trail

The Blockchain Association and the DeFi Education Fund said in a friend-of-the-court brief filed that the SEC's Consolidated Audit Trail (CAT) has privacy issues. After the financial crisis, the SEC passed Rule 613 in 2012 requiring national securities exchanges and the Financial Industry Regulatory Authority to maintain a Consolidated Audit Trail (CAT). The group said that CAT will turn "the blockchain into a massive and completely de-anonymized repository that governments can search at will without having to show any reason to obtain a search warrant." The group also warned that the CAT database could be vulnerable to hacking. The brief stated: "Worse, user data submitted to the CAT database has a high probability of being leaked to external parties through accidental or malicious attacks. Although organizations are investing more than ever in cybersecurity, data breaches are still increasing dramatically."

▌Justin Justin Sun responded to the withdrawal of BTC collateral from USDD: USDD does not belong to anyone

In response to The Block's report that Justin Sun withdrew BTC collateral from USDD, Justin Sun responded on the X platform: "USDD is a decentralized stablecoin protocol that has nothing to do with anyone's name, just like Satoshi Nakamoto created Bitcoin, but Bitcoin does not belong to Satoshi Nakamoto." Earlier news, Tron DAO Reserve withdrew about $750 million worth of Bitcoin on Wednesday, which was previously used to support the USDD stablecoin. Tron founder Justin Sun said users don't need to worry, explaining that the move was to improve capital efficiency because USDD's previous long-term collateralization rate exceeded 300%.

Important economic developments

▌Fed 's Goolsbee: All conditions required for rate cuts have been met

Fed's Goolsbee said that he supports the Fed to start paying attention to the job market; inflation is on the path to return to 2%; policy is currently at the tightest point in the entire rate hike cycle; the Fed's forecast shows broad support for rate cuts; all conditions required for rate cuts have been met; almost all indicators show that the job market is cooling; he does not want to provide clear guidance on the Fed's interest rate decisions; he does not think inflation will stay above 2%.

▌Institution : Although Powell hinted at a rate cut, investors still need to be cautious

Chris Zaccarelli of the Independent Advisor Alliance said in a report that Fed Chairman Powell's "balanced and candid" speech at the Jackson Hole conference paved the way for a 25 basis point rate cut in September and "left the door open for further rate cuts if necessary." He believes it is too early to say that the economy has a soft landing and advises investors to "take a balanced approach to investing, neither preparing for the possibility of an imminent recession nor pursuing risk and becoming complacent because the Fed will cut interest rates in less than a month.

▌The three major U.S. stock indexes closed higher

The three major U.S. stock indexes closed higher, with the Dow Jones Industrial Average up 1.14%, the Nasdaq up 1.47%, and the S&P 500 up 1.15%. Popular technology stocks rose across the board, with Nvidia and Tesla up more than 4%.

Golden Encyclopedia

What is Delegated Proof of Stake (DPoS)?

DPoS is an evolution of the Proof of Stake (PoS) consensus mechanism, designed to provide enhanced scalability, efficiency, and democratic governance. Daniel Larimer proposed the concept of DPoS in 2014 as an enhancement to the traditional PoS consensus mechanism, designed to improve efficiency and scalability. Larimer first shared his vision in a Bitcointalk forum post, which led to the actual implementation of DPoS and the launch of BitShares in 2015. This marked the beginning of DPoS in blockchain technology, laying the foundation for its adoption in other projects such as Steem and Eos. Eos, in particular, used the consensus mechanism to conduct one of the largest initial coin offerings (ICOs) in the cryptocurrency industry in 2017, which attracted a lot of attention to DPoS and highlighted its potential in achieving high performance and decentralized governance.

Disclaimer: As a blockchain information platform, Jinse Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.