Fidelity says Fed may delay rate hike to December, but September increase still possible

Fidelity says Fed may delay rate hike to December, but September increase still possible

Fidelity Investments suggests the US Federal Reserve might postpone interest rate increases until December, though a September hike isn't ruled out. Delayed rate hikes are generally seen as positive for risk assets like Bitcoin and crypto.

What happened

In the latest evening news roundup, spot Bitcoin ETFs saw total net inflows of $233 million yesterday, with BlackRock's IBIT leading at $183 million. Ethereum spot ETFs recorded total net inflows of $13.29 million, led by BlackRock's ETHA with $16.24 million.

Why it matters for the market

FTX has begun its fifth round of creditor distributions, releasing another $900 million. Separately, an analyst noted that Bitcoin short-term holders now represent just 23.5% of the market, a multi-year low.

Fidelity said the Federal Reserve may wait until December before starting its rate-hike cycle, but a September move cannot be ruled out. In the same update, the three major cloud providers were said to have AI infrastructure capital expenditure as high as $220 billion, with second-quarter cloud revenue beating expectations across the board.

Elsewhere, the 'Situational Awareness' fund linked to an AI stock-picking guru reportedly lost 67% in July and has approached Sequoia and Greenoaks about selling some private assets to ease liquidity pressure. South Korea also saw leveraged ETF trading volume plunge 75% on the first day after tighter rules took effect.

What traders should watch

Vida, founder of Formula, said more than 70% of his wealth came from an early information advantage in crypto, and his current tolerance for a single losing trade is about $100,000.

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