Jerome Powell hints at rate hikes while Mastercard ends its partnership with Binance. IRS proposes new crypto tax rules, and WLD token faces a downturn.
Fed’s Jerome Powell Prepared to Raise Rates Again

Fed’s Jerome Powell Prepared to Raise Rates Again

Aug 26, 2023
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Hi all, and welcome to the final Datawallet daily for the week. As always, we will focus on topics from the crypto sphere and help you stay ahead of the competition. Today’s drop covers the following topics:

Fed’s Jerome Powell prepared to raise rates again 

In his keynote speech at the Kansas City Fed's Jackson Hole Symposium, U.S. Federal Reserve Chairman Jerome Powell signaled that the central bank is poised to further tighten monetary policy if needed to curb inflation. Emphasizing a cautious but necessary approach, Powell's comments maintained that restrictive monetary measures will remain in place until inflation shows signs of sustainable slowing.

The financial markets reacted subtly to Powell's hawkish tone. Bitcoin's price initially dipped but quickly recovered, and traditional market indicators like U.S. stock indices and the 10-year Treasury yield showed modest fluctuations. Market expectations for another Fed rate hike in September remained largely unchanged, hovering around a 20% likelihood according to the CME FedWatch tool.

Mastercard and Binance to end crypto card partnership  

Binance seems to be reducing its partnerships with card providers, as Mastercard has decided to end their collaboration and the crypto exchange has temporarily stopped accepting new applications for its Visa-supported European card.

According to a spokesperson from Mastercard, the card pilot programs they had with Binance in Argentina, Brazil, Colombia, and Bahrain will be discontinued on September 22.

A representative from Binance stated that this change will not affect Binance accounts worldwide. Users who have access can still make purchases using cryptocurrency and send crypto through Binance Pay. This is a secure payment technology developed by Binance that allows contactless and borderless transactions.

WLD token loses 44% a month after launch

The value of Worldcoin's WLD token has experienced a significant drop in the last 24 hours, declining by 9.1%. Over the past month, it has lost an even greater percentage of 43.6% ever since Sam Altman's cryptocurrency project introduced its token to the market. Presently, as per CoinGecko data at 4:15 p.m. HKT, Worldcoin is being traded at approximately $1.33; this is a notable decrease from its value of $2.36 one month ago.

Jeff Mei, the chief operating officer of crypto exchange BTSE, expressed concern over this recent downward trend in Worldcoin's WLD token price when compared to other tokens like Ripple's XRP which are showing signs of recovery at present.

IRS releases proposed crypto tax reporting rules

The U.S. Treasury Department's recent proposal on digital assets taxes has already received significant backlash from the cryptocurrency industry. This indicates that the proposal will face numerous challenges during the extensive process of public comments and hearings. 

Following its release, X (formerly known as Twitter) was flooded with criticisms regarding the scope of the proposal. Many individuals expressed concerns about how the tax-reporting requirements may encompass decentralized crypto operations, which industry experts argue would be practically impossible to comply with. Thus, it is evident that there will be a long and arduous journey ahead for this proposed tax regulation in relation to cryptocurrencies.

XRP Whale moves 29 million tokens amidst volatility 

Investors seem to be selling their XRP holdings as the cryptocurrency struggles to gain momentum after Judge Analisa Torres ruled in the United States Securities Exchange Commission v. Ripple Labs case that XRP is not a security. Additionally, a large holder of 29 million XRP, worth more than $15 million, has transferred their coins to a crypto exchange during this period of declining prices close to the support level.

Other breaking news

Wrapping up

In a week of high stakes and volatility, Jerome Powell signals potential rate hikes, Mastercard parts ways with Binance, and the IRS stirs the pot with new tax rules. WLD token's value plunges, while XRP sees significant whale activity. Stay tuned, stay informed, and see you on Monday for your next crypto update.