SummaryThe current monetary tightening cycle is historic. From 1990-2021 there was only one .75% or larger raise to the federal funds rate.The Merge on Ethereum lays the ground for key future optimizations. Its importance can't be overstated because of the size, complexity and storied history of the Ethereum platform.Over the four months of quick tightening by the FOMC, Bitcoin, Ethereum and the midcap altcoins have on average traded down 40%-60% with the Nasdaq Composite down about 8%.In the days following Chair Powell's Jackson Hole speech, CME futures placed a 75% chance of a .75% rate hike at the September FOMC meeting.The FOMC may, on balance with other factors, consider their effects on the European energy crisis from the September rate decision.Somewhat appropriately, cryptocurrency prices are largely driven by U.S. monetary policy over the medium-term. And of course, over the past four months Fed policy tightening has taken a historic shift to combat entrenched energy inflation. The FOMC raised the target federal funds rate by .50% at the beginning of May, followed by two .75% increases in June and July. For perspective, there has only been one .75% or larger raise since 1990.The Committee has also instituted an ongoing, large scale reduction in the Fed's balance sheet, which will generally further tighten financial conditions and raise interest rates. In September, the potential and likely monthly balance sheet roll-o...
