US Labor Market Cools, Inflation Pulls Back, and Bitcoin Rebounds After Jarring Drop
Welcome to our Weekly Market Update. Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we learn more about the Render Network.
Takeaways
US labor market and inflation showed signs of cooling in June: The unemployment rate rose to 4.1% and CPI, a core inflation measure, increased just 3.3% year-over-year.
US House can’t override Biden veto: US lawmakers fell short of the two-thirds majority needed to overturn Biden’s veto of a Congressional resolution to overturn an SEC bulletin that puts additional pressure on firms that custody crypto assets.
The Labour Party won a decisive victory in the UK general election last week: The win ended 14 years of Conservative rule and left the direction of crypto regulation somewhat uncertain.
Spot bitcoin ETFs experienced nearly $300 million in net inflows on Monday: It was the highest since early June, with buying led by BlackRock’s IBIT and Fidelity’s FBTC.
VanEck and 21Shares have updated their S-1 registrations with the SEC to list spot Ethereum ETFs: The ETFs are expected to begin trading shortly after approval, which should come later this summer.
Doja Cat's Twitter account was hacked to promote a Solana-based meme coin named $DOJA: The breach prompted the star to alert her Instagram followers that she was not responsible for the tweets.
US Labor Market, Inflation Cool as Job Growth Slows
The US labor market exhibited signs of cooling in June, with the unemployment rate rising and recent job growth figures slowly moving downward. According to the US Bureau of Labor Statistics (BLS), the economy added 206,000 jobs last month, surpassing the 190,000 forecasted by economists polled by Reuters. However, revisions to April and May data showed employment figures were 111,000 lower than initially reported.
The BLS also reported Thursday that core CPI, a key measure of inflation that excludes volatile gas and food prices, checked in at 3.3% year-over-year, below analyst expectations of 3.4%. It also jumped just 0.1% from May, the lowest month-over-month increase since August 2021.
Despite widespread expectations of little change, June's non-farm payrolls report indicated an increase in the unemployment rate to 4.1%, the highest since November 2021. The resilient labor market over the past two years has allowed the Federal Reserve to cautiously approach interest rate adjustments as it aims to manage inflation. With easing price pressures, the Fed is closely monitoring employment trends to guide decisions on future interest rate cuts.
Minutes from the Federal Reserve's June meeting revealed that policymakers are increasingly concerned about potential downside risks to the labor market. They noted that a further weakening in demand might lead to a more significant rise in unemployment compared to recent years, where lower demand was primarily reflected in fewer job openings.
The Render Network (RNDR): Decentralized 3D Rendering
The Render Network is a blockchain and crypto-enabled project that enables individuals to contribute unused GPU power to help projects render motion graphics and visual effects. In return, users receive Render token (RNDR), the network’s native utility token. By creating a peer-to-peer (P2P) network upon which people and businesses can tap into underutilized computational power cheaply and efficiently, Render greatly simplifies the standard processes of rendering and streaming 3D environments and other visual effects. As a result, the project is an essential building block for next-generation digital products and services in the metaverse.
Onward and Upward,
Team Gemini
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