🚨 Powell's Testimony: What Bitcoin Investors Need to Know

Good Morning!

The Federal Reserve's annual stress tests indicate that major US banks can withstand severe economic downturns. The tests showed strong capital levels and risk management practices across the industry, reassuring investors and regulators. Despite potential future challenges, including rising interest rates and economic uncertainties, the results highlight the robustness of the banking sector in facing financial shocks.

In today’s email:

• J-Pow: Jerome Powell delivers semi-annual testimony to the Senate Banking Committee, Tuesday and testifies to the House Financial Services Committee, Wednesday

• Bitcoin: Hanging around $57k

• US🇺🇸Stock Indices : S&P500 and Nasdaq hit new highs

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THE BIG IDEA

Asian markets show mixed performance, with Japan leading gains as investors await Powell's testimony and key economic events.

Hold onto your crypto wallets, folks! The Asian markets are giving us a rollercoaster ride today. Japan's Nikkei 225 is stealing the show, smashing records and up a whopping 23% this year. Talk about a bull run! Meanwhile, China and Hong Kong are playing party poopers, with their markets taking a nosedive.

All eyes are on Jerome Powell as he gears up for his Congressional grilling. Will he drop hints about rate cuts? The market's betting on two this year, with a 70% chance of a September surprise. It's like watching a high-stakes poker game, but with trillions on the line.

China's central bank is keeping everyone on their toes with new liquidity operations.

It's like they're playing 4D chess while we're still figuring out checkers. Over in Japan, the BOJ's having heart-to-hearts about bond purchases. Looks like they're trying to wean the market off its QE addiction – easier said than done!

Australia's consumer sentiment is looking gloomier than a rainy day in Sydney. Seems like the threat of more rate hikes is raining on their parade. Speaking of parades, the S&P 500 just hit 5,570. Are we in for more fireworks as earnings season kicks off?

In the commodities corner, oil's taking a breather after Hurricane Beryl decided to play nice. Gold's trying to find its footing after a stumble, and copper's doing its best impression of a sloth – slow and steady.

So, buckle up, crypto cowboys! With markets swinging like this, who needs a theme park? Just remember, in this financial rodeo, it's not about how many times you fall – it's about how many times you get back up and HODL!

MARKETS AT A GLANCE

TOP NEWS

S&P 500 and Nasdaq hit new highs as investors brace for a week packed with crucial economic events and earnings reports.

We're riding the bull all the way to new highs on the S&P 500 and Nasdaq. But don't pop the champagne just yet – this week's about to get spicier than a ghost pepper burrito. We've got Powell's Congressional two-step, inflation data that could make or break rate cut dreams, and earnings season kicking off. It's like the Super Bowl, World Series, and NBA Finals all rolled into one for us finance nerds.

Oil steadies after storm impact, awaits Fed guidance.

Crude's on a rollercoaster! Beryl's bark was worse than its bite, but Texas is still licking its wounds. All eyes on Powell's testimony - will he oil the wheels for rate cuts? Meanwhile, gasoline bears are growling louder than a Texan without power. Stay tuned for this high-stakes energy drama!

CRYPTO

Celebrities' crypto tokens likely to attract SEC scrutiny and potential lawsuits.

From Caitlyn Jenner to Iggy Azalea, stars are launching memecoins faster than you can say "FOMO." But the SEC's not amused. With tokens tanking and insider trading whispers, these A-listers might be trading red carpets for courtrooms.

Bitcoin faces potential further downside amid market uncertainty and bearish indicators.

Bitcoin's rollercoaster ride continues! After a fake-out bounce, BTC's flirting with a "double top" and sub-$50K predictions. Traders are sweating as unrealized losses pile up, and even the "diamond hands" are feeling the pressure. With CPI data and Powell's testimony on deck, it's looking more "crypto fear" than "lambo dreams" right now!

Bitcoin's sell-off may create opportunities to buy ETF shares at discounts.

Crypto bargain hunters, listen up! Bitcoin's nosedive might have a silver lining. As BTC flirts with $50K, ETF shares could soon be on sale. We're not talking Grayscale's 50% off bonanza, but even a 2% discount is nothing to sneeze at. Keep your eyes peeled on EZBC, HODL, and IBIT. With rate cuts and election drama ahead, this flash sale might be your ticket to ride the next bull run!

BlackRock's tokenized treasury fund BUIDL hits $500M milestone, leading the growing RWA tokenization trend.

Looks like BlackRock's BUIDL is building quite the empire in the tokenized treasury world. Half a billion dollars in less than four months? That's faster growth than a meme coin on Elon's Twitter feed! With Ethereum leading the charge and big players like Ondo Finance jumping on board, it seems the tokenization train is full steam ahead. Larry Fink's blockchain dreams are becoming reality, folks. Who said you can't teach an old Wall Street dog new crypto tricks?

GOLD

Gold's bull run expected to continue through 2024 on geopolitical tensions and central bank buying.

Gold's shining brighter than a rapper's grill. Up 15% this year and breaking records like it's going out of style. The yellow metal's got more supporters than a crypto pump group - central banks are stacking, ETFs are back in black, and geopolitical drama's keeping safe-haven demand hotter than ever. With the Fed eyeing rate cuts and elections looming, gold's looking set to keep its Midas touch. ING's calling for $2,350/oz by year-end. Looks like it's still a golden age for the OG hedge!

DAILY ECONOMIC CALENDAR (ET)

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