1. Penpie hackers exchanged the stolen assets for more than 21,000 ETH, part of which has been transferred to Tornado Cash;
3. In the past 24 hours, the entire network has been liquidated for $194 million, and BTC has been liquidated for $52.8153 million;
4. Penpie (PNP) fell below 1 USDT, with a 24-hour drop of nearly 40%; 4. Ethereum L2 transaction fees have dropped significantly in the past 6 months, and L1 revenue has dropped by 99%;
5. Pendle: The protocol funds are safe. All contract operations have been temporarily suspended due to the Penpie vulnerability.
6. US SEC: About half of Galois Capital's assets under management were lost due to the collapse of FTX in November 2022;
7. Market news: US SEC accuses crypto hedge fund Galois Capital of custody errors;
8. ZKsync development company Matter Labs announced a 16% layoff, the first layoff in its six-year history.
9. Fundstrat Co-founder: With the Federal Reserve's potential rate cut and the upcoming general election, investors should remain cautious in the next eight weeks.
Let’s discuss a hot topic today: What impact does the US fiscal deficit have on BTC?
1. The Federal Reserve’s monetary policy:
• The Federal Reserve has rapidly raised interest rates in recent years, intending to fight inflation by raising interest rates. However, this policy has also increased the government's deficit financing costs, which in turn has had a significant impact on the market. In particular, Powell's statement at the Jackson Hole meeting in August 2023 clearly hinted that interest rate hikes may be suspended at the September meeting.
2. Government spending and inflation:
•Government spending is considered one of the main causes of inflation. Although politicians know that high inflation is not good for reelection, fiscal policy still tends to be expansionary because the short-term benefits of providing benefits to voters through currency depreciation are more attractive.
3. U.S. Treasury Market:
• The performance of the U.S. Treasury market is closely related to the global financial market. Due to the status of the U.S. dollar as the world's reserve currency, the yield of U.S. Treasury bonds directly affects the global debt market. You mentioned that after the Federal Reserve paused its rate hikes in 2023, the 10-year Treasury yield unexpectedly rose, a phenomenon that may indicate uncertainty in the future market.
4. Bitcoin Market:
• There is a high correlation between Bitcoin price fluctuations and US dollar liquidity. Bitcoin prices fluctuated sharply after Powell announced the salary adjustment policy. This suggests that Bitcoin may be a sensitive tool for tracking US dollar liquidity conditions.
5. Future Outlook:
• If the Fed continues to ease monetary policy, the bond market may tighten further, especially at the key level of 5% 10-year Treasury yields. At the same time, risk assets such as Bitcoin may continue to be affected by changes in market liquidity.
