Executive brief

The first Federal Open Market Committee meeting under Chairman Kevin Warsh has concluded with a rate hold at 3.50% to 3.75%, though the tone shifted toward a hawkish stance. Warsh’s announcement that the Fed has officially dropped forward guidance, combined with a dot plot suggesting potential hikes later in 2026, has introduced new volatility into risk assets. Markets are now recalibrating for a “higher for longer” environment as the Fed signals inflation remains elevated relative to its 2% target. The move marks a departure from the communication style of previous leadership, with the central bank now seeing PCE inflation not returning to its target until 2028.

Simultaneously, a preliminary US-Iran memorandum of understanding aimed at reopening the Strait of Hormuz has provided temporary geopolitical relief. While oil prices fell below $80 per barrel, Bitcoin has struggled to hold gains, trading near $65,000 as the initial relief bid met the reality of tighter US monetary policy. Analysts suggest that while energy-driven inflation risks may be easing, restored liquidity support for digital assets must now come from a softening Fed or consistent institutional inflows. The 60-day window established to negotiate a final deal will remain a key directional driver for macro sentiment through the third quarter.

In corporate developments, BlackRock has launched BITA, a covered-call Bitcoin ETF, signaling a shift from simple spot exposure to complex income-generating products. Meanwhile, Kraken is bringing CFTC-regulated perpetual futures to US professional traders across 9 different assets. However, risks remain evident as Botanix Labs announced it will wind down its Bitcoin Layer 2 due to weak native demand, while the persistent discount on Strategy’s STRC preferred stock, currently trading at $91.79, presents a cautionary signal for Bitcoin-linked yield products. Opportunity may lie in the accelerating tokenisation trend as Moody’s begins embedding credit scores directly into Solana-based securities.

1) Top 20 news headlines

2) BTC and ETH ETF flows

Metric BTC ETH
Net inflow $10,064,258.78 $9,587,634.18
Value traded $1,262,571,615.58 $404,210,088.90
Net assets $82,062,395,461.13 $9,888,659,181.84
Cumulative net inflow $53,570,469,131.20 $11,218,181,290.94

3) X trending news

  • Fed drops forward guidance; Chairman Warsh states that forward guidance is no longer the business of the central bank.
  • Rate hike odds surge; the probability of the Fed hiking interest rates in 2026 has increased to 49% following the dot plot update.
  • SpaceX value hits $2.95 trillion; the company has surpassed Microsoft to become the fourth largest public company in the world.
  • Musk worth more than Bitcoin; Elon Musk’s net worth has risen to $1.4 trillion, exceeding Bitcoin’s $1.3 trillion market cap.
  • Tokenised stock trading record; over $4.3b worth of tokenised stocks were traded onchain in the last 30 days, a 140% year to date increase.
  • Fed sees PCE target delayed; the central bank now forecasts inflation will not return to its 2% target until 2028.
  • Coinbase tokenised stocks; the exchange has announced it will launch tokenised stock trading to expand its financial product range.
  • FTX stake in Cursor; the exchange sold its 5% stake for $200k in 2023, which would now be worth $3b following the SpaceX acquisition.