DATADATA Network Price

Bitcoin mining company Hyperscale Data has sold approximately 100 Bitcoin and obtained a Bitcoin-backed loan to fund the construction of its new AI data center in Michigan. The proceeds are for infrastructure and equipment, with the credit facility carrying an interest rate of 4.5% to 5%. The project supports a 10-year deal with an unnamed AI provider for 20 megawatts of capacity, potentially generating over $1.2 billion in revenue. Options to expand and extend the contract could increase its total value to more than $3 billion. Hyperscale Data, formerly Ault Alliance, continues its Bitcoin mining operations and remains a significant corporate holder with about 1,006 BTC.

In the US, the closely watched Federal Reserve inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, fell slightly in June but remained above the Fed's 2% target. However, data showed a strong rebound in consumer spending in Q2, indicating underlying economic resilience despite high interest rates and energy price pressures. The core PCE inflation rate eased from 3.4% to 3.3%. While a positive signal, it remains well above target, creating ongoing monetary policy uncertainty. Fed Chair Kevin Warsh emphasized that policy decisions will rely on a broader set of inflation metrics beyond PCE, and affirmed the US economy's strength. Analysts cite renewed energy price surges as a key inflation risk for H2 2023, which could force further Fed tightening. Consumers are becoming more price-sensitive, though spending remains stable as they seek value. Citigroup economists note that Warsh's focus on wider inflation indicators, including the lower core Consumer Price Index (CPI) at 2.6%, may reduce the near-term likelihood of a rate hike. While markets price a 59% chance of a September increase, Citigroup believes this expectation is overstated and that another hike may not be imminent.

Crypto analyst Benjamin Cowen assessed the latest U.S. inflation data and its potential macroeconomic impact on Bitcoin (BTC). Recent data, including a 0.1% monthly decline in the PCE index and moderate economic growth, was received positively by markets, with Bitcoin maintaining a stable trajectory without a sharp decline. However, Cowen highlighted internal divisions within the Fed regarding interest rates. Despite current rates being held stable, three FOMC members voted for a hike, suggesting monetary tightening may not be over. He pointed to the relationship between 2-year Treasury yields and the Fed's discount rate, indicating that when yields exceed the rate, the restrictive impact of policy weakens. Cowen warned that if the labor market heats up again, inflationary pressure could resume, creating a high probability of a surprise Fed rate hike in the latter half of the year, potentially in September. Such a hike, occurring when cuts are expected, could shock investors and accelerate a flight from risk assets. Regarding Bitcoin's price cycles, Cowen suggested the market bottom may not be in yet, and based on historical data, the most likely scenario is for Bitcoin to find its true low in the fourth quarter (Q4) of the year.

The IRS Criminal Investigation unit has warned cryptocurrency holders of a sophisticated phishing scam involving fake paper letters that mimic official IRS correspondence. These letters, which include official formatting and a deadline, instruct recipients to enroll in a non-existent "Digital Asset Compliance Portal." A QR code inside the letter directs victims to a spoofed IRS website designed to steal personal information and, in some cases, trick them into directly transferring cryptocurrency to scammers. The scam exploits the fact that the IRS has legitimately sent compliance letters regarding digital assets since 2019, making such mail seem plausible. The agency clarifies it never uses QR codes in official letters, never asks for digital asset transfers as part of compliance, and does not operate a digital asset enrollment portal. Legitimate notices can be verified via IRS.gov. If you receive such a letter, do not scan the QR code, call any listed numbers, or enter personal information on any linked site. Verify your account status only through official IRS tools. This scam undermines trust in genuine IRS communications during a period of increased crypto enforcement.

Despite recent price fluctuations in Bitcoin, blockchain data from CryptoQuant suggests the market has not yet reached a classic capitulation phase. According to analyst Julio Moreno, there is no clear sell signal, and Bitcoin has not entered a full-scale capitulation, indicating this is either a minor correction or could lead to further declines. Moreno notes that Bitcoin holders have only recently begun realizing annual losses, currently around 136,000 BTC. Historical cycles, however, saw realized losses bottom at between 1.3 million and 3.7 million BTC. This cycle could become known for the mildest loss phase in Bitcoin's history, or losses could still increase significantly from current levels. Two scenarios are outlined: the current cycle could be the one with the fewest stop-loss sales in Bitcoin's history, or the market could face further selling pressure as it has not yet found its true bottom. Moreno concludes that sell-offs on a scale characteristic of capitulation have not yet been observed, and it is too early to consider current price levels as the definitive cycle bottom.