PPI and CPI fell, and Credit Suisse was reported to be bankrupt again. Before the interest rate hike next week, the last set of important data, PPI refers to the producer price index: the annual rate of PPI in February was 4.6%, lower than the expected value of 5.40%, and lower than the previous value of 6.00%. The monthly rate of PPI in February was -0.1%, lower than the expected value of 0.30%, and lower than the previous value of 0.70%. The monthly rate of retail sales in February was -0.4%, lower than the expected value of -0.3%, and lower than the previous value of 3.00%. Following the decline in CPI yesterday, PPI fell sharply today, lower than expected. After three banks in the United States went bankrupt within a week, the fire spread to Europe, Credit Suisse was on the verge of bankruptcy, and regional bank stocks in the United States fell into altcoins. CPI and PPI fell back, and the Federal Reserve should give priority to maintaining financial stability.

Back to the point: Maxine Waters, director of the U.S. House Financial Services Committee, said that stablecoin legislation could be passed within a few days. Previously, the market turmoil caused by the collapse of Silicon Valley Bank briefly led to the peg of USDC to the U.S. dollar, and the stablecoin issuance management team called on the U.S. Congress to urgently pass stablecoin legislation. Dominic Johnson CBE, Secretary of State at the Department of Business and Trade, met with Jeremy Allaire, CEO of stablecoin issuer Cirdle, to discuss the UK's approach to digital assets, and said that digital assets have the potential to shape the future of financial technology, and with the right regulatory clarity, the UK will remain a strategic growth market. Goldman Sachs applied for a patent with the U.S. Patent Office, focusing on smart contract technology, which can be applied to a variety of financial instruments such as fractional reserve banking, insurance, bonds, securitized products and margin lending.

Dressx, a digital fashion company, received $15 million in Series A funding, led by crypto venture capital firm Greenfield. Tilia, a metaverse payment platform, completed strategic financing, with participation from J.P. Morgan Payments, Dunamu, and others. CNHC Group, a stablecoin issuer, completed a $10 million Series A+ funding round, with participation from IDG Capital. (Linked to offshore RMB at 1:1) Circle: Working to restore the liquidity operation of USDC, including introducing new transaction banking partners, on March 13, Circle redeemed $2.9 billion USDC and minted $700 million USDC. Most of the cash portion of the reserves held at Bank of New York Mellon is managed by BlackRock. CB will allow Singapore customers to transfer funds in or out of their accounts through local banks, with Singapore dollar transfers provided by traditional bank Standard Chartered. Open-AI announced the latest version of GPT-4, and OpenAl said the new model performed better than humans in many standard tests. For example, GPT-4 scores on the simulated bar exam rank around the top 10% of test takers, on the SAT reading test rank around the top 7%, and on the SAT math test rank around the top 11%.

Mike Novogratz, founder of investment company Galaxy Digital: Jerome Powell should immediately stop raising interest rates and then lower them faster than we thought. Now is the time to focus on Bitcoin and cryptocurrencies, which is why Bitcoin and cryptocurrencies were created. Ray Dalio, founder of Bridgewater Fund: Signs of the collapse of Silicon Valley banks will have a chain reaction in the venture capital field, and inflation and slowing credit growth will catalyze debt contraction and spread until the Fed resumes its loose monetary policy. The Australian Central Bank and Treasury B held a private meeting with international cryptocurrency industry executives to discuss the future of the country's digital assets and regulation. Ethereum developers are preparing to release the Shapella upgrade on the Goerl test network, which is the final rehearsal before the main network is scheduled to be launched in April. Tether issued 1 billion USDT on the TRON network and the Ethereum network, respectively, for a total of 2 billion USDT.

At the end of the interest rate hike, banking crises are frequent. After Silicon Valley Bank, Credit Suisse is rumored to be bankrupt again. Its 5-year credit default swap (CDS) spread has risen to crisis levels, and US regional bank stocks have fallen into altcoins. Sherrod Brown, director of the US Senate Banking Committee, called on the Federal Reserve to suspend interest rate hikes at its meetings on March 21 and 22. At next week's interest rate meeting, the probability of a 25 basis point rate hike is 40.6%, and the probability of interest rates remaining unchanged is 59.4%. Currently, there are only 10 basis points left to bet on an upward rate hike, and the market believes that interest rates will peak in March. The Federal Reserve's interest rate swap pricing will cut interest rates by 100 basis points before December. (The first rate cut may be as early as July)

Moody's has assessed the operating environment and outlook of the US banking system as negative. CPI and PPI have fallen as expected. According to the current difficulties of the US banking industry, the Federal Reserve has presented an aggressive image before March, and may have to change to a moderate image after March, including this meeting, to maintain financial stability. Faced with the successive bankruptcies of the banking industry, the market is irrational, and the pricing of stopping interest rate hikes and interest rate cuts is also irrational. It took three days for Silicon Valley Bank to digest the negative news (last Thursday, Friday, and Monday this week), and the risks caused by Credit Suisse also need time to digest. If the recent banking risks can prompt the Federal Reserve to stop raising interest rates this month, it is worthy of attention by crypto people. Interest rate hikes cause a series of problems, and interest rate cuts solve a series of problems. Crossing the critical point of bull and bear markets and passing this period of instability will also pay off. #BTC #crypto2023 #ETH #Binance #牛回