After tech
giant Apple Inc. attacked the crypto market by demanding that the market pay
30% of the revenues generated using Apple’s ecosystem, led to the stop of NFTs being sent via the Coinbase wallet using
the iOS application. Apple attributes this percentage as the amount of money it
needs to pay for the gas fee (an Ethereum blockchain transaction fee) to send
NFTs. Coinbase compared such a demand to the commission charged for sending
emails via the Apple platform.
SushiSwap’s
new CEO, Jared Grey, says that the exchange has 1.5 years of treasury runaway
left that is needed to maintain the exchange operational. The exchange needs $5
million per year to cover operating expenses. So, the project is now considering
granting all staking revenues of xSUSHI tokens to the project itself. The
xSUSHI token is issued for clients that made staking with the project to
receive a reward that is generated from transaction fees of the decentralized
exchange. So, staking with xSUSHI would make no sense from the financial point of
view, but would support the project during the long-lasting market correction.
A falling
market cap of crypto assets reveal the real problem of the decentralized crypto
economy. This economy may function only in the friendly environment of
continuous rally. When the rally reverses, negative implications will surface
to make crypto enthusiasts suffer. Even such sheer and respectable projects
like SushiSwap are in distress during such downturns.
The Federal
Reserve (Fed) continues to raise interest rates and is likely to keep them high
for a long period. As long as the American economy demonstrates sustainability,
the Fed may continue with aggressive monetary actions. So, positive incoming
macroeconomic data from the United States spurs demand for the U.S. Dollar. For
a while now, market players have been waiting for the recession to tame the Fed’s
hawkish moves. But if the macroeconomic data in the U.S. remains strong, there
are no chances that borrowing cost would decrease. Investors’ reaction to the
positive ISM data in the U.S when stock indexes went down and treasuries yields
rose made it clear that the American economy is strong and further interest
rate hikes by the Fed are inevitable.
BTC prices
continue to move towards the $10,000 per coin target with a possible short up
spike to $19,000. That would weaken the bulls and clear the way for Bitcoin
prices to decline below the resistance level at $15,500 per coin.