Crypto News: Market Update April 2024
April was highlighted by the long-awaited Bitcoin halving event, eagerly anticipated by the entire crypto industry for years. At the same time, April’s data provided a clear view of the Federal Reserve’s stance, indicating that they are not yet planning to lower interest rates. With a strong labor market and persistent inflation, the central bank remains vigilant for the next rate decision. Additionally, the approval of ETF’s in Hong Kong marked a significant milestone, paving the way for broader adoption and global acceptance of crypto as an emerging asset class.
April 5: Strong U.S. Job Growth in March; Wage Growth Steady
U.S. employers added 303,000 jobs to the labor market in March, exceeding expectations and highlighting a robust economy. The report also indicates a steady increase in wages. This data suggests a potential delay in interest rate cuts by the Federal Reserve. The upcoming inflation report is now being closely monitored. Overall, the report points to a resilient labor market amid changing economic conditions and geopolitical tensions. (Source: Reuters)
April 10: U.S. Inflation Rises Faster than Expected to 3.5% in March
De consumentenprijzen in de VS zijn in maart met 3,5% gestegen ten opzichte van een jaar eerder, dit is meer dan eerst werd verwacht. Energietarieven en huisvestingskosten waren de voornaamste katalysatoren van deze stijging. De onverwachte toename kan de hoop op een snelle renteverlaging door de Federal Reserve dwarsbomen. Na het rapport hebben handelaren hun verwachtingen voor de eerste renteverlaging verschoven naar september. De stijgende inflatie heeft de aandelenmarkt doen dalen en de rendementen op obligaties doen stijgen. (Source: CNBC)
April 15: Hong Kong Grants Approval for First Bitcoin and Ether Spot ETFs
Hong Kong has approved its first spot Bitcoin and Ether exchange-traded funds (ETFs). This paves the way for the city to become the first in Asia to accept cryptocurrencies as a mainstream investment instrument. At least three offshore Chinese asset managers are set to launch the virtual asset spot ETFs soon. This approval comes just three months after the U.S. launched its first ETFs tracking spot Bitcoin, which have already attracted approximately $12 billion in net inflows. Although cryptocurrency remains banned on the Chinese mainland, Hong Kong is positioning itself as a global hub for digital assets, part of its drive to enhance its appeal as a financial center. (Source: Reuters)
April 20: The Bitcoin Halving Took Place Succesfully
Bitcoin has successfully completed its “halving,” an event that occurs approximately every four years. Immediately after, the price of Bitcoin remained relatively stable, experiencing a slight decline of 0.47% to $63,747. The halving is a change in the underlying technology of the cryptocurrency designed to reduce the rate at which new bitcoins are created. This event, embedded in Bitcoin’s code by the pseudonymous creator Satoshi Nakamoto, is considered one of the biggest events in the crypto industry this year. (Source: Reuters)
April 25: U.S. GDP Growth Slows Down to 1.6% in Q1
U.S. Gross Domestic Product (GDP) grew by just 1.6% in the first quarter of the year, well below the 2.5% forecast. Consumer spending increased by 2.5%, while investments and government expenditures had a positive impact on growth. However, inflation accelerated, with the Personal Consumption Expenditures (PCE) index rising by 3.4%. This report comes amid growing concerns about the Federal Reserve’s monetary policy and indicates that it will take some time before the Fed starts lowering interest rates. (Source: CNBC)
April 26: Fed’s Key Inflation Gauge Rose More than Expected in March
In March, the Personal Consumption Expenditures (PCE) price index, excluding food and energy, rose by 2.8% year-over-year, unchanged from February and slightly higher than anticipated. Personal spending increased by 0.8% month-over-month, surpassing the 0.5% rise in personal income. Meanwhile, the personal savings rate dropped to 3.2%, down 0.4 percentage points from February and 2 percentage points lower than a year ago. This persistent inflationary pressure suggests that the Federal Reserve is likely to maintain its current interest rate policy. (Source: CNBC)
April 30: Binance Founder Zhao Sentenced to Four Months in Prison
Changpeng Zhao, the former head of Binance, has been sentenced to four months in prison for violating U.S. anti-money laundering laws at the world’s largest cryptocurrency exchange, Binance. Zhao, known as “CZ,” is the second major crypto executive to be sentenced to prison. The sentence imposed on Zhao was much shorter than the three years sought by prosecutors and lower than the maximum penalty recommended under federal guidelines. Prosecutors were satisfied with the outcome of the years-long investigation into Binance and Zhao. Zhao has expressed remorse and will voluntarily serve his sentence. (Source: Reuters)
Conclusion
In conclusion, April 2024 marked a pivotal period for both the cryptocurrency market and the Federal Reserve’s monetary policy. The long-anticipated Bitcoin halving has captured the industry’s attention and continues to signal future market movements. Meanwhile, April’s data highlights a robust U.S. labor market and persistent inflationary pressures, which are currently deterring the Federal Reserve from lowering interest rates. The approval of ETFs in Hong Kong represents a significant step toward broader acceptance of crypto as an emerging asset class globally.
