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Free Internet Services Expanded for NYCHA Residents Free Internet Services for NYCHA Residents – Manhattan Times News


Free Internet service for NYCHA residents

By Gregg McQueen

Eric Adams announces expansion of ‘Big Apple Connect’ program.

The service is excellent, thank you very much.

Las autoridades municipales han anunicó que, para finales de 2023, unos 300,000 rezidents de los complecos habitacionales de la Autoridad de Vivienda de la ciudad de New York (NYCHA, por sus siglas en inglés) can use the Internet or internet services. cable television.

The Big Apple Connect program is for the first time in more than 100 locations related to the city of NYCHA, according to Eric Adams, a very large municipal program. del país.

In NYCHA, more than 200 lots can connect to free Internet and cable for fines until 2023.

On September 19, Langston Hughes Houses, Brooklyn, Adams, a pilot of the Big Apple Connect, went online.

“The Internet doesn’t need any electricity or gas,” Adams says. “Covid pandemic, absence of Internet service, can’t go away remotely. Vimos que nuestros mayores no podían hacer telemedicina”.

“The residents of New Cha have been in contact with each other for a long time.”

With NYCHA residents, you can use a wide range of software for free, consistent Internet connection speed, modem and router, TV service and cable connection and long distance. las zonas comunes de susedificios.

2023 final, NYCHA’s 200 cities get free Internet access with cable TV, Adams.

Las personas que vivan en las urbanizaciones de NYCHA que rúnan los requisites necesarios serán automistas en el programa y sólo se les invoicerán los servicios adicionales que decide to acquire Directamente.

Matt Fraser, director of technology, is a free resident program for the Internet program.

“WiFi cannot be used for free. Use the economy, protect public opinion, it could just be another person,” Fraser. “That is, vivienda publica, sustainable demasiado tiempo, ha estado en segundo plano a tras, simplemente porque no tenía acceso a los recursos”.

Island of Langston Hughes Houses, Mott Haven Houses in the Bronx, and Patterson Houses at the Polo Grounds Towers in Harlem and las Mott Haven Houses are pilots.

The city has signed agreements of three years with Optimum and Spectrum to provide service, employees, and is negotiating on Verizon as a possible provider.

Fraser is a global program that depends on the global program, but will cost $30 for free services at NYCHA.

“Big Apple Connect” program expands from 100 locations.

Ciprian Noel, president of Inquilinos de Langston Hughes Houses Asociación, reduces gas by using this program for free access to the Internet program Nueva York University.

“The university has everything. Soy padre soltero. Solo ingreso en mi hogar,” says Noel.

“Esto es una faktur, que marca $0.00 dolares”, he signaled, blandiendo su faktur de Internet en la rueda. “Este programa es muy bueno”.

Jessica Katz, Director of Vivienda, is NYCHA’s “Mayor and Nueva York City’s great recurso de vivienda avaliable.”

“Dejadas have been struggling with desmorone for a long time. So, little by little, hemo estado trabajando muy hardo para conseguir cosas para NYCHA y tratar de reconstruir la confianza con los restruir de NYCHA y reconstructir physically los own buildings of NYCHA, así como la connectiva de NYCHA reconstructir de NYCHA de Nueva York” , he said. “It’s really important.”



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The Fed sees economic pain ahead. Stock markets are feeling it now.


Blue-chip stocks fell to their lowest level since 2020 on Friday, continuing a nasty slide that began in August as investors tried to deal with economic headwinds in the U.S. and around the world that could only get worse.

Major stock indexes ended the week with losses, posting their fifth decline in the last six weeks. The Dow Jones industrial average fell 483 points, or 1.6 percent, below 30,000 at Friday’s close. The index avoided closing in bear market territory, down 20 percent from its previous high. The S&P 500 fell 1.7 percent and the Nasdaq Composite fell 1.8 percent.

The Federal Reserve has promised to keep inflation under control — even if the slowing economy raises unemployment and leaves households and businesses feeling some pain. While the Fed is widely expected to raise interest rates this week, the stock markets are already feeling the pain.

“The Fed’s ongoing balancing act between restoring price stability versus economic pain has roiled markets as hopes for a soft easing quickly faded,” said Nicole Tanenbaum, partner and chief investment strategist at Checkers Financial Management. “Monetary policy is a blunt instrument, and investors are rightly concerned that the Fed may move too quickly without being able to accurately assess the effects of its policies on the economy.”

The bad market news — and the Fed’s forecast of a sharply slowing economy — could also affect campaigns for this fall’s congressional midterm elections, where Republicans hope voters will blame President Biden and Democrats for high inflation. Inflation became a slightly less prominent issue among voters as people said they felt better about the economy and took some breather from lower gas prices. But turmoil in the markets can become a hot topic on the trail.

The full weight of the Fed’s actions since March — having already raised its key interest rate by 3 percentage points and expecting more hikes — may not be felt until later this year or beyond. But financial markets are taking the central bank’s pledge and sounding alarm bells — making it clear that no matter how many times Fed officials say they will do everything they can to crush inflation, the idea still rattles Wall Street.

“I believe it’s probably going to get worse before it gets better,” said Dan Ives, managing director and chief equity research analyst at Wedbush Securities.

Analysts say the decline is due not only to the Fed’s actions so far, but also to further tightening ahead and the increased likelihood that the Fed will be unable to lower inflation without triggering a recession. This kind of decline can quickly hit corporate profits as well.

“A soft landing is going to be very difficult, and we don’t know — nobody knows — whether this process will lead to a recession or, if so, how significant that recession will be,” Fed Chairman Jerome H. Powell said on Wednesday. Fed interest rate announcement.

Interest rate hikes are the Fed’s new norm

The central bank is rushing to cool the economy and lower consumer prices. Officials still don’t see enough progress. But market jitters now reflect the local and global economy aimed at slowing down.

Oil prices fell to their lowest level since January. The S&P energy sector fell 6.75 percent.

Shares Big tech firms including Apple, Amazon, Microsoft and Meta Platforms fell on Friday. (Amazon Chairman Jeff Bezos owns The Washington Post.) Goldman Sachs cut its year-end S&P 500 forecast, largely due to rising interest rates. On the other hand, bond yields rose this week after the Fed’s latest rate hike, and 2-year and 10-year Treasury rates hit their highest levels not seen in more than a decade.

Major market indexes are down significantly for the year so far, although the long bull market that has continued until recently shows them still up more than 30 percent over the past five years.

Bad economic news can become a political issue. House Minority Leader Kevin McCarthy (R-Calif.), Announces the GOP’s official campaign agenda on Friday: “We want a strong economy. This means you can fill up your tank. You can buy food. You have enough money to go to Disneyland and save for the future – wages are going up, they’re not going down anymore.”

Brutal close came a week later The Fed still raised interest rates by three-quarters of a percentage point, the third such move and the fifth hike of the year to fight inflation. Wednesday’s increase was considered unusually large until recently. But Fed officials want to cut interest rates from the “neutral” zone, which neither slows nor dehydrates the economy, to a “limited area” that dampens consumer demand by about 2.5 percent.

The Fed’s benchmark interest rate is now between 3 percent and 3.25 percent, and officials expect it to rise above 4 percent by the end of the year.

Why is the Fed raising interest rates?

This rate does not directly control rates on mortgages and other loans. But it affects how much banks and other financial institutions pay to borrow money, which helps control credit prices more broadly. Most importantly, the Fed’s own communications—whether Fed officials’ statements or policymakers’ economic forecasts—are key to shaping financial conditions and starting markets to price in what are still expected rate hikes.

Monetary policy is notoriously backward-looking, and the Fed’s rate hikes to date have yet to significantly lower inflation. But the movements manifest themselves in other ways in the economy.

“Financial conditions are generally affected well before we announce our decisions,” Powell said this week. “Then changes in financial conditions begin to affect economic activity quite quickly within a few months. However, it will likely take some time to see the full impact of changes in financial conditions on inflation.”

Five charts that explain why inflation is so high

Diane Swonk, chief economist at KPMG, said traders were worried about how the Fed’s steps would be scaled up as other central banks stepped up their fight against inflation. The Fed was among a list of global central banks to raise rates this week – the Bank of England, for example, raised interest rates by half a percentage point on Thursday and warned that the United Kingdom may already be in recession. The fear is that the economy of many countries will not be able to withstand an extreme slowdown. A Fed rate hike also means a bigger debt burden for poor countries.

European stocks also fell sharply on Friday, partly after the United Kingdom announced a series of tax cuts to stave off recession.

Economists and traders fear that when politicians take big swings at once, they risk overshooting not only their own economies, but the world as well.

“Synchronized, out of sync,” Swonk said of the back-to-back moves from various central banks. “It wasn’t planned.”





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Is Bitcoin Set For Another Drop?


Is Bitcoin Set For Another Drop?

the price of Bitcoin

Bitcoin

Bitcoin is the largest and the world’s first digital currency launched in 2009 by Satoshi Nakamoto. Being a digital currency, Bitcoin’s defining feature is that it operates without a central bank or single administrator. Conversely, Bitcoin can instead be sent via a peer-to-peer (P2P) network with no intermediaries. Rather than being a physical currency, Bitcoins represent pieces of digital code that can be sent and received in some kind of distributed form. ledger network called blockchain. Bitcoins are considered legal tender because they are not issued or backed by any government or central bank. Transactions on the Bitcoin network are verified by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining bitcoins, computers receive rewards in the form of new bitcoins. Mining becomes more and more difficult over time, which causes the subsequent rewards to become smaller and smaller. Given the structure of the code, only 21 million bitcoins will exist. However, by 2020, there were already 18.3 million bitcoins in circulation. History of Bitcoin Since its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency in the world by market capitalization. Its popularity has also contributed significantly to the launch of thousands of other cryptocurrencies, now known as altcoins. At its inception, the cryptocurrency market was initially hegemonic, although the landscape now consists of countless altcoins. Due to its decentralized nature, it has been heavily criticized for its use in illegal transactions and money laundering. Since Bitcoin is untraceable, it makes the cryptocurrency an ideal target for illegal behavior. Critics also point to its high electricity consumption for mining, wild price volatility and stock market theft. Due to the lack of oversight, Bitcoin is seen by some as a speculative bubble.

Bitcoin is the largest and the world’s first digital currency launched in 2009 by Satoshi Nakamoto. Being a digital currency, Bitcoin’s defining feature is that it operates without a central bank or single administrator. Conversely, Bitcoin can instead be sent via a peer-to-peer (P2P) network with no intermediaries. Rather than being a physical currency, Bitcoins represent pieces of digital code that can be sent and received in some kind of distributed form. ledger network called blockchain. Bitcoins are considered legal tender because they are not issued or backed by any government or central bank. Transactions on the Bitcoin network are verified by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining bitcoins, computers receive rewards in the form of new bitcoins. Mining becomes more and more difficult over time, which causes the subsequent rewards to become smaller and smaller. Given the structure of the code, only 21 million bitcoins will exist. However, by 2020, there were already 18.3 million bitcoins in circulation. History of Bitcoin Since its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the launch of thousands of other cryptocurrencies, now known as altcoins. At its inception, the cryptocurrency market was initially hegemonic, although the landscape now consists of countless altcoins. Due to its decentralized nature, it has been heavily criticized for its use in illegal transactions and money laundering. Since Bitcoin is untraceable, it makes the cryptocurrency an ideal target for illegal behavior. Critics also point to its high electricity consumption for mining, wild price volatility and stock market theft. Due to the lack of oversight, Bitcoin is seen by some as a speculative bubble.
Read these Terms It recently saw two quick $14K drops, one in May and one in June. The downs were quick. After the moves, the market price consolidated.

Since June 19, the price has strengthened between $17,592 and $25,400. Recently, the price has risen to test the downward sloping trend line. The move moved above the falling 100-day MA (blue line in the chart above) but failed to sustain the momentum (stopping the rally instead of the trend line). Buyers had their shot above the 100-day MA. They failed because of the trend line.

The digital currency retreated to a June low of $17,592. This week’s low was close to $1,000 from the low.

My question is, “are we running into another downside?”

Given the consolidation, the market may be ready from June 19 onwards. Also as mentioned, buyers found their chance to buy above the 100-day MA, but found willing sellers at the trend line. Bear.

If the price breaks down, all bets would be off if the price rises above the 100-day MA of $21,268. This is also close to the trend line. At $18,664, the risk is slightly higher to $21,268.

Is there a closer level of risk?

Drilling down into the hourly chart below, the highs over the last few days were above the 200 hour MA on September 21st, but failed. Still, the receivers scored and missed. Subsequent highs on September 22nd and today found sellers closer to this MA line.

As a result, MA will be a closer risk level at $19379. Staying down is worse. The movement above is higher (stop). That’s the risk.

In the short term, a lower stop could be $19084, which is where the 100-hour MA is found. Today, the price broke below this MA and stayed below it. This is also low and may be a closer risk defining level for traders looking for a quick opportunity.

Admittedly, stops can be triggered when bitcoin sneezes, but the idea is “time” Price action speaks to me.

Bitcoin is below the 200 and 100 hourly MA. Close risk levels now

Hey….it’s not easy to trade bitcoin, but technicals are technical when looking at Bitcoin, Microsoft, oil or GBPUSD. The chart looks bearish to me with some risk against the hourly or daily MA/trend line. The premium to the new 2022 low could see the pair move towards the $11,000 area if it gains another steam behind the pair.

Time will tell, but that’s what the charts tell me.



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Life Time Expands Portfolio of Luxury Athletic Clubs in New York with Opening of Iconic One Wall Street Destination; Brooklyn and Midtown Next


With seven seats NYCLife Time is dramatically changing the landscape of health and wellness with unparalleled venues, performers and programs, perfect boutique experiences for all ages

New York, September 8, 2022 /PRNewswire/ — Life Time (NYSE: LTH), the nation’s premier healthy lifestyle brand, today announced the opening of Life Time One Wall Street, the first of three athletic club locations scheduled to open. New York City By the end of 2022. Located in the popular One Wall Street Development in the Financial District, the 74,000 square foot space spans four floors and offers something for everyone from 90 days old to 90 years old.


Life Time continues to expand with the opening of Life Time One Wall Street on September 8. The 74,000-square-foot club in the Financial District offers four floors of all kinds of healthy lifestyle amenities, including studios, a fitness floor, a health cafe, a spa, chiropractic and rehabilitation and dedicated spaces for children.

The launch brings Life Time owned and operated athletic country clubs to more than 160 countries. United States and Canada. The additions of Life Time One Wall Street and the upcoming Life Time DUMBO, Life Time Midtown, Life Time Brooklyn Tower and Life Time Park Avenue locations demonstrate the Company’s focus on growth. New York City in high-profile developments and neighborhoods.

Life Time One Wall Street is designed with a healthy lifestyle for the whole family in mind and is the first Life Time in the City to offer a Life Time Kids Academy with nearly 10,000 square feet of space focused on all things kids. Kids can spend up to 2.5 hours a day at the academy, with yoga and fitness studios for their classes, a kid-sized basketball court, spaces for arts, crafts, music and more, as well as a variety of activities for families. This addition to the Financial District is a unique proposition for those aiming to lead a healthy lifestyle for themselves and their families.

“We couldn’t be more excited to expand our presence at Time of Life New York City At a time when our personal health has never been more important and strong communities are desperately needed,” he said Jeff Zwiefel, President and Chief Operating Officer of Life Time. “Our Lifetime One Wall Street designation adds a stunning element to our portfolio in the City and illustrates how we will continue to grow here and beyond.”

Designed by Life Time’s Architecture and Design team, the club beautifully reflects the history of One Wall Street and the former Irving Trust Bank and Bank of America. New York. The development preserves the history of the building, including access to yoga studios on the club’s lower levels, recovery spaces, exercise areas, and more. carefully guarded numerous bank vaults that served as focal points. Additional highlights at Life Time One Wall Street include:

  • The ultimate boutique venue with over 100 large group classes weekly, including seven dedicated studios for barre, cardio and strength, indoor cycling, Pilates and yoga.
  • Hundreds of best-in-class equipment for cardio, strength and functional training.
  • Dedicated spaces for personal and signature group training programs including GTX, Alpha and Ultra Fit.
  • The ARORA program is designed for active seniors with classes, social events and workshops.
  • LifeSpa, offering full-service salon and spa services including hair, nails, esthetics and massage.
  • LifeCafe offers a wholesome, real-food, fast-casual restaurant with a chef-prepared menu, to-go food and drinks.
  • LT Recovery providing compression, massage and chiropractic services.
  • Luxurious dressing rooms with multiple rejuvenation areas including Jacuzzi suites, saunas, steam rooms and premium, complimentary personal care products.

Life Time One Wall Street joins the company’s existing destinations, including: Life Time Sky in Hell’s Kitchen, 23rd Street, NoHo and Battery Park. Later this fall, Life Time Dumbo will debut as the company’s first Brooklyn destination in the newly developed Front & York building, and Life Time Midtown will open by the end of 2022. Preview Centers for both are now open to prospective members. Information can be found at lifetime.life/nyc.

Life Time One Wall Street will be open Monday through Friday, 5 to 11 p.m and on Saturdays and Sundays from 6 a.m. to 10 p.m. For more information on features and amenities, visit the club at 29 New Street or call 212.671.7100. Additionally, follow LifeTime.Life on Facebook and LifeTime.Life and LifeTime.NYC on Instagram.

About life time®Inc.

Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of nearly 160 athletic country clubs in the United States and Canada. The company’s healthy lifestyle communities and ecosystem cover all aspects of healthy living, healthy aging and healthy entertainment for people from 90 days to 90+ years. Backed by a team of over 30,000 dedicated professionals, Life Time is committed to delivering the best programs and experiences through clubs, iconic sporting events and a comprehensive digital platform.

SOURCE Life Time, Inc.





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Execs: US internet casino gambling set to expand


ATLANTIC CITY, NJ As sports betting swept states, casinos and across the country with consumers eagerly embracing the new gambling market, internet casino gaming grew more slowly.

The online casino market has great potential for growth and expansion, attendees at a major casino conference said Friday.

Speaking at the East Coast Gaming Congress, executives from online gambling companies and their technology partners said the rapid growth of sports betting has provided a ready-made infrastructure and regulatory apparatus for online casino gaming.

So far, this type of gambling is legal in only six states: New Jersey, Pennsylvania, Michigan, West Virginia, Delaware and Connecticut.

But panelists at the conference predicted three or four additional states could soon adopt Internet gambling, including Indiana, Illinois, Iowa and New York.

In addition, more than a dozen states sell lottery tickets online, according to James Carey, executive director of the New Jersey Lottery.

“I’m sure there’s a lot of room for growth,” said Jeffrey Millar, commercial director of North American operations for online casino content provider Evolution.

“The development of this industry is still in its infancy in the United States,” said David Rebuck, New Jersey’s top gambling regulator, as director of the state’s Department of Gaming Enforcement.

Richard Schwartz, CEO of Chicago-based online gambling company Rush Street Interactive, said that already legal sports betting is a strong candidate to take over online casino games.

“They already have regulators,” he said. “They have servers. It’s faster to add a casino.”

Currently, 31 states and Washington, DC offer legal sports betting, with several more expected to do so soon.

Since launching Internet gambling nine years ago, New Jersey casinos have generated $4.79 billion from online gamblers, according to the American Gaming Association, the casino industry’s national trade group. That’s nearly double the $2.47 billion earned online by Pennsylvania casinos since July 2019.

Michigan has earned $2 billion online since January 2021; Connecticut $199.7 million from October 2021; West Virginia $137.4 million since July 2020; and Delaware $42.2 million since December 2013. Nevada offers online poker, but doesn’t separate that revenue from the casinos’ reporting to the state.

These figures are for online casino games only and do not include separately reported sports betting revenue.

New Jersey is on the verge of extending its internet gambling law for another 10 years, and at Thursday’s opening session of the casino conference, the state’s Democratic governor, Phil Murphy, vowed to sign the bill into law if it passes.

A 2018 US Supreme Court ruling in a New Jersey case cleared the way for all 50 states to offer legal sports betting. With this rapid expansion came the expectation in some quarters that internet gambling would almost automatically grow at the same rate.

“It didn’t happen,” said Howard Glaser, government affairs and legislative counsel at Liught & Wonder, the successor to gambling technology firm Scientific Games.

He said there are concerns among some state lawmakers in particular that Internet gambling could siphon off revenue and customers from brick-and-mortar casinos — though the gambling industry has not.

When New Jersey launched internet gambling in November 2013, casinos initially had the same concerns. Luisa Woods is vice president of Delaware North, a gambling, hospitality and sports company that owns casinos in New York, Arizona, Arkansas, Florida, West Virginia and Ohio. .

He was previously head of digital operations at Atlantic City’s Tropicana casino in 2013.

“The first thing I did was to sell the company I wasn’t here to compete with your business; I’m here to help him grow,” he said. “We integrated the brand, created loyalty accounts for each remote customer. We had people who were showing up at the property for the first time and had already been assigned a host.

———

Follow Wayne Parry on Twitter at www.twitter.com/WayneParryAC





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Billionaire investor Bill Ackman has a cure for high inflation: a massive wave of Russian migration


The Federal Reserve has been raising interest rates aggressively in hopes of cooling the economy and taming inflation, which was near a 40-year high of 8.3% in August.

Their goal is to reduce demand and slow rising wages so that high consumer prices do not “take root”. But senior officials indicated this week that it would not be a “painless” process for Americans.

Now, some of Wall Street’s most prominent minds are arguing that the Fed lacks the tools to really tame inflation.

While central banks can act to slow the demand side of the economy, their policies do not have much effect on the supply of goods, services, or workers. And many economists and senior investors argue that increased domestic production of scarce goods and commodities, along with an expanding labor force, is an important piece of the inflation puzzle.

On Thursday, Pershing Square Capital Management CEO Bill Ackman said immigration, not the Fed, could be the solution to inflation, striking a very different tone from his hawkish comments a few months ago urging central bank officials to raise rates. .

“Inflation can be reduced by reducing demand and/or increasing supply. The Federal Reserve can only reduce demand by raising rates, which is a very blunt instrument,” Ackman writes. tweet. “Doesn’t it make more sense to adjust wage inflation with increased immigration than to raise rates, destroy demand, put people out of work and cause recession?”

The billionaire investor, known for his heated feud with Wall Street titan Carl Icahn, has suggested using Russian immigrants to ease rising pressure on wages.

“If we can use immigration policy to achieve important political goals, such as accelerating the flow of talent from Russia to the United States, why shouldn’t we?” he wrote.

“Let’s remove barriers for Russia’s brightest. The most talented Russians must go now before they become the fodder of an unjust war. Doing so saves our economy and destroys Russia’s future,” he added separately tweet.

Ackman’s comments prompted thousands of Russians to flee the country after Russian President Vladimir Putin ordered the mobilization of 300,000 reservists to fight in the Ukraine war on Wednesday. Russia was already experiencing a serious talent drain, with an estimated 4 million Russians leaving for greener pastures in the first three months of 2022 alone. Ackman argues that the U.S. should be willing to accept at least some of these disgruntled Russians to boost our workforce and fight inflation.

A National Bureau of Economic Research study by Harvard economist George Borjas on immigration’s potential to lower inflation suggests that increased immigration lowers the wages of competing domestic workers, which could have a chilling effect on inflation, according to Ackman.

And researchers at the Federal Reserve Bank of Kansas City explained in a May paper that when immigration slows, it could raise wages at home and boost inflation.

While it may sound counterintuitive for economists and investors to advocate for more immigration to slow wage growth, their fear is that inflation-driven wage increases help company costs, which in turn drive up prices—which will eventually drive up wages. inflation cannot be controlled.

Olivier Blanchard, the IMF’s former chief economist, warned last week that he believed the US was already experiencing a wage-price spiral, and that reversing the trend would likely require significant job losses.

A big change

Ackman’s recent comments about the Fed causing a recession with rate hikes represent a seismic shift in his thinking over the past few months.

Back in June, the billionaire called on the Fed to be “aggressive” with a 75 basis point rate hike, arguing that the institution has lost credibility because of officials’ unwillingness to fight inflation.

Ackman got his dream. The Fed raised rates by 75 basis points in June, followed by two more 75 basis point hikes in July and September, marking the fastest pace of US monetary policy tightening since the 1980s.

But now, with the S&P 500 down more than 10% this month alone and more and more economists arguing that a recession is imminent, Ackman is warning that the Fed may be overreaching.

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Bitcoin struggles as dollar hits 20-year high


Key Takeaways

  • The dollar index rose to a 20-year high above 112 thanks to the Federal Reserve’s economic tightening policy.
  • As the dollar rises, Bitcoin and other cryptocurrencies struggle due to Fed rate hikes.
  • Although the dollar is currently appreciating against other currencies, a decline in inflation or an end to the European energy crisis could revive interest in risky assets.

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Bitcoin and the broader cryptocurrency market are struggling to stay above June lows as the dollar strengthens again.

Bitcoin falls as dollar rallies

Bitcoin is fighting against the dollar and it is losing.

The Dollar Index (DXY), a financial instrument that measures the value of the U.S. dollar against a basket of other currencies, hit a 20-year high on Friday, undercutting other world currencies and riskier assets. DXY, which measures the value of the dollar against a basket of other currencies, crossed 112 this morning. It is trading around 112.8 at press time, according to TradingView data.

The cryptocurrency market has been hit particularly hard in recent weeks due to the renewed strength of the dollar. In August, Bitcoin experienced a brief rally to $25,200 as the dollar retreated from its July high. However, since then, crypto assets have been crushed under the weight of a rising dollar. Bitcoin now appears to have stabilized below $20,000, trading around $18,810 at press time, according to CoinGecko data, while the dollar continues to climb.

DXY (blue) and BTC/USD (orange) chart (Source: TradingView)

Much of the dollar’s positive price action can be traced to the Federal Reserve’s rising interest rates. The Fed is tightening US dollar liquidity as it raises rates to fight inflation. This should help lower inflation by making debt more expensive, thereby reducing demand. However, one side effect of such a regime is that it makes the dollar a more attractive investment.

Tightening dollar liquidity means market participants have less money to invest in riskier assets like cryptocurrencies and stocks. This, in turn, reduces demand and causes asset prices to fall. The Federal Reserve has also stopped buying US Treasury bonds as part of its tightening policy. This has led to an increase in the yield on US bonds, which helps the value of the dollar to increase as more investors buy these bonds.

The Dollar Milkshake Theory

It’s not just cryptocurrencies and stocks suffering from the appreciation of the US dollar. Liquidity from the global economy is flowing into the U.S. dollar at a record pace as the Fed begins to raise rates before other nations to fight inflation and is increasingly aggressive in the size of its hikes.

This effect was coined by the “Dollar Milkshake Theory” by Brent Johnson, CEO of Santiago Capital. He claims that when the Fed stops printing because it is the world’s reserve currency, the dollar will draw liquidity from other currencies and countries around the world.

The Dollar Milkshake theory seems to have worked as the US Reserve Bank turned off the money printer and began tightening liquidity in March. The euro, the currency with the largest weighting against the dollar on the DXY, has fallen sharply during 2022, reaching a 20-year low of $0.9780.

The situation of other world currencies is not so good. The Japanese yen fell to a 24-year low on Thursday, prompting government intervention to help prop up the currency. While the European Central Bank has responded to the euro’s weakening by raising interest rates, the Bank of Japan has so far refused to do so. That’s because it actively engages in Yield Curve Control, keeping interest rates at -0.1% while buying an unlimited amount of 10-year Treasuries to keep yields at a target of 0.25%.

As the global economy deteriorates, assets such as cryptocurrencies are increasingly difficult to gain traction. However, there are several signs that investors can look out for that could signal the end of the dollar’s dominance and its impact. If next month’s Consumer Price Index data shows a significant decline, investors may turn to riskier assets in the hope that the Fed will calm down on rate hikes. Elsewhere, a resolution to the current Russia-Ukraine war could help ease the global energy crisis by lowering the cost of oil and gas. Still, for now, the dollar’s appreciation shows no signs of slowing down, which could keep the cryptocurrency near annual lows.

Disclosure: The author owned ETH, BTC and several other cryptocurrencies at the time of writing this piece.

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