In a crucial move to enhance its decentralization efforts, liquidity protocol THORChain (RUNE) has revealed plans to bridge decentralized finance (DeFi) to the top cryptocurrency by market cap, Bitcoin.

The development comes as THORChain cements its presence in the digital assets space. RUNE’s total value locked (TVL) has grown steadily from $225.96 million in October 2023 to surpass $1.458 billion in March 2024.

It has a TVL of $902.55 million at press time, reflecting massive growth over the past 12 months.

The blockchain’s revenue above $100 million underscores the chain’s success.

Recently, it attained all-time highs with approximately 32% of RUNE’s circulating supply (107 million tokens) bonded and 111 nodes.

Moreover, THORChain establishes itself as a decentralized liquidity platform by adding new validators and removing old nodes every 72 hours.

The project expects massive activity with the approaching 120-node limit. Such demand will likely propel RUNE prices higher.

The latest announcement added to RUNE’s surging price as bulls triggered an explosive move to $5.70 from $5.2759.

Meanwhile, the cryptocurrency sector has maintained upsides in the past few days amid the improving global economy.

Digital assets see renewed enthusiasm

The crypto market has flourished over the past ten days, with Bitcoin climbing from the 18 September low of $59,476 to its press time price of $65,847.

The asset class has benefited from renewed attention after the Fed confirmed the much-awaited rate cut.

China’s updated stimulus measures also added to the enthusiasm.

Moreover, payment giant PayPal announced that US merchants can use their platform to buy and sell cryptocurrencies. That boosted optimism as digital assets see mainstream acceptance.

The market remains poised for continued uptrends into October, and enthusiasts expect BTC to hit $80K amid “Uptober” uptrends.

The latest rate cut will likely increase cash flow into risky assets in the upcoming times.

Also, historical data backs the anticipated surges. Coinglass stats show Bitcoin usually records double-digit surges in October over the past eight years, witnessing monthly losses once.

A technical analysis supports the upside outlook.

A solid candlestick closing above $65K would shift Bitcoin’s market structure to bullishness.

Analysts remain confident BTC will hit $80K soon. That would mean enormous gains for altcoins, sending RUNE to new all-time highs.

THORChain’s price performance

RUNE has recently displayed recoveries as cryptocurrencies rallied amid improving global economic conditions.

Meanwhile, yesterday’s massive 81% price jump likely shifted CHORChain’s trajectory to bullishness.

The altcoin skyrocketed from $5.2759 to $5.70 within four hours.

The cryptocurrency changes hands at $5.50 after slight dips from its 24-hour high. Meanwhile, the 10% increase in daily trading volume supports bull favoritism.

With Bitcoin eyeing $80K in “Uptober,” RUNE looks ready to capitalize on the massive bullish momentum to hit never-seen-before peaks.

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France’s inflation rate took a significant dip in September, falling to 1.5%, down from 2.2% in August, according to preliminary data released by the National Institute of Statistics and Economic Studies (Insee) on Friday.

The primary drivers behind this significant decrease include a notable reduction in energy prices, particularly petroleum products, along with a seasonal decline in transport costs.

Insee also noted that some tariffs had returned to normal after surging during the Olympic and Paralympic Games. Meanwhile, tobacco prices were relatively unchanged for the month.

The drop in France’s harmonized inflation rate—adjusted for comparison across eurozone countries—was steeper than economists anticipated, further intensifying the pressure on European Central Bank (ECB) policymakers to introduce measures aimed at stimulating the broader economy.

The Harmonized Index of Consumer Prices (HICP) fell below the 2.0% forecast from economists surveyed by Reuters.

The sharp decline is seen as a potential catalyst for additional ECB interventions.

Earlier this month, the central bank lowered interest rates by 25 basis points to 3.5%, resuming its rate-cutting cycle, which began in June.

Following the inflation announcement, the euro dipped to a session low of $1.1143 before settling at $1.1126 by mid-morning in London, representing a 0.45% drop.

In addition to the HICP, France’s Consumer Price Index (CPI) for September also showed a decline, falling to 1.2% from 1.8% in August, marking the steepest monthly drop in inflation since 1990, according to Insee.

As France’s inflation cools rapidly, the pressure mounts on the ECB to take further action to prevent a slowdown in the eurozone’s second-largest economy.

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Argentina’s poverty rate soared to nearly 53% in the first half of 2024, according to official data released on Thursday, marking a sharp increase from the 41.7% reported at the end of 2023.

This rise, driven by the tough austerity measures implemented by President Javier Milei, reflects the immediate economic impact of his efforts to address the country’s deep fiscal deficit.

While Milei’s policies aim to stabilise Argentina’s finances, they have inflicted significant short-term hardship, especially on low-income households, as inflation remains in triple digits and the economy endures a recession.

Milei’s sweeping economic reforms

The official figures show Argentina’s poverty rate has more than doubled from 26% seven years ago, underscoring the severe consequences of repeated economic crises.

While Milei’s fiscal reforms, including deep spending cuts, have been welcomed by investors for helping to correct the nation’s long-standing budgetary imbalance, the human cost has been steep.

The sharp rise in poverty highlights the toll these policies are taking on the country’s most vulnerable citizens, exacerbating inequality.

The libertarian president’s policies are designed to reduce public spending, but in doing so, many social safety nets have been weakened.

Job losses and reductions in welfare support have placed additional strain on households, with many families struggling to afford basic necessities.

Soaring inflation and economic downturn drive rising poverty

Argentina’s economy remains mired in a deep recession, with inflation continuing at triple-digit levels, although some analysts see early signs of stabilisation.

Despite the efforts to control inflation, the skyrocketing cost of living has contributed to a worsening of poverty.

Even those who manage to retain employment are finding it increasingly difficult to make ends meet, as wages fail to keep pace with price hikes.

One of the most affected groups is informal workers, many of whom have seen their incomes decline dramatically.

Irma Casal, a 53-year-old resident of Buenos Aires, symbolises this growing economic hardship.

Despite holding three jobs—recycling garbage, collecting cardboard, and working as a bricklayer—she can barely sustain herself.

“We work twice as hard for less and we have to keep going,” Casal says, summarising the plight of millions of Argentines.

Markets applaud reforms, but public pays the price

Despite the severe impact on everyday Argentines, Milei’s austerity measures have been met with approval from investors and financial markets.

His government’s fiscal discipline is seen as a necessary step toward addressing Argentina’s long-standing deficit problems.

Markets have responded positively to the government’s budget cuts, which are aimed at restructuring the country’s finances and making Argentina more attractive to foreign investors.

However, the recession and ongoing inflation have made it clear that the cost of Milei’s reforms is being borne disproportionately by Argentina’s lower and middle classes.

Critics argue that while the markets may benefit from these reforms, ordinary citizens are left grappling with shrinking incomes and limited opportunities for upward mobility.

Signs of recovery, but poverty remains high

Despite the grim numbers, some experts see signs of a potential turnaround.

The Catholic University of Argentina (UCA) estimates that while the poverty rate surged to 55.5% in the first quarter of 2024, it eased slightly to 49.4% in the second quarter, averaging around 52% for the first half of the year.

Agustin Salvia, director of UCA’s observatory, noted that Milei’s policies have started to show some positive effects, with poverty beginning to decline in recent months.

The broader context remains bleak. The government has cut several welfare programmes while expanding others, such as the Universal Child Allowance and a Food Card initiative.

These targeted interventions provide some relief, but they are insufficient to offset the full impact of the wider spending cuts.

Long-term prospects for Argentina’s economy under Milei

Looking ahead, the long-term success of Milei’s economic strategy remains uncertain.

His government has acknowledged the challenges facing the nation, with presidential spokesman Manuel Adorni stating that “any level of poverty is horrendous” during a press conference.

Adorni blamed the mismanagement of previous administrations for the economic “bombs” Milei’s government is now attempting to defuse.

Despite the government’s efforts to mitigate the impact of austerity on Argentina’s most vulnerable, the immediate future remains difficult for millions of Argentines.

The hope for many is that the short-term pain will eventually yield long-term economic stability, but for now, the country’s poverty rate continues to rise as Milei navigates the challenges of balancing fiscal discipline with social welfare.

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In an unexpected turn of events, Mexico’s trade deficit rose to $4.868 billion in August 2024, a significant increase from the $1.278 billion deficit reported in the same month the previous year, which means a gap of 73.5 per cent compared to last year.

These numbers, published by the Instituto Nacional de Estadística y Geografía (INEGI), greatly exceeded market expectations, which predicted a much smaller difference of around $0.5 billion.

As a result, the trade imbalance for August 2024 has reached its highest level in two years, causing anxiety among economists and policymakers alike.

This sharp increase in the trade deficit can largely be attributed to a 5.7% rise in imports compared to the previous year, totalling $56.783 billion in August 2024.

A significant contributor to this rise was an 8.8% increase in the import of non-oil goods, which effectively counterbalanced a steep 26% decline in oil imports.

Intermediate goods surged reflecting strong demand

A closer look at the data shows that imports of intermediate goods increased by 9.8%, indicating robust demand in industrial sectors that rely on these materials and components.

However, not every category performed well. Imports of capital goods, which are critical for production and manufacturing, declined 2.6%, while consumer goods purchases fell 1.3%.

These changes in import patterns reflect a complex economic situation in which industrial requirements are met while consumer and capital investments are declining.

Such complex variations indicate that Mexico’s trade situation is developing, affected by factors other than oil dynamics.

Decline in exports amidst oil market shifts

On the exports front, there was a slight decline of 1%, bringing totals to $51.916 billion in August.

This drop was fueled by a substantial 26.6% decrease in oil exports, a traditionally vital component of Mexico’s export economy.

On a more optimistic note, non-oil exports experienced a small increase of 0.6%, indicating resilience in other sectors.

Specifically, non-oil exports to the United States, Mexico’s largest trading partner, rose by 2.2%, showing stronger economic connections and demand.

However, this positive momentum was overshadowed by a 7.1% decline in exports to other global markets, revealing disparities in trade performance across different regions.

Overall trade deficit and economic implications

In the first eight months of 2024, Mexico has amassed a cumulative trade deficit of $10.438 billion, highlighting ongoing issues with the country’s trade balance.

This prolonged period of deficit raises critical questions about the overall health of Mexico’s economy and its capacity for sustainable growth amid global economic uncertainties.

Economists and analysts are keeping a close eye on these developments, particularly the structural shifts in import and export behaviors.

The uptick in non-oil imports alongside the drop in oil exports hints at a transformation in Mexico’s trade dynamics, which may reflect broader changes in global trade patterns and domestic economic policies.

Future outlook and concerns over Mexico’s economy

To address the growing trade deficit, a diversified strategy will be necessary.

Policymakers must investigate the underlying causes of the diminishing oil trade and consider methods to enhance non-oil export sectors.

Stimulating the home economy, particularly in the consumer and capital goods sectors, could help to ease some of the recent unfavorable trends.

Furthermore, expanding foreign trade partnerships beyond the United States may result in more diverse and consistent export opportunities.

As Mexico faces these complex problems, the coming months will be critical in determining the long-term outlook of its trade balance and economic vigor.

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Inflation in the US continued its downward trend in August, latest data has shown, providing hope for additional interest rate cuts by the Federal Reserve.

The Personal Consumption Expenditures (PCE) price index, the Fed’s favored measure of inflation, rose by just 2.2% year-over-year, down from 2.5% in July.

This is the lowest inflation rate since February 2021, marking significant progress toward the Fed’s 2% target.

On a month-over-month basis, prices edged up by 0.1%, matching economists’ expectations.

However, “core” inflation, which excludes volatile food and energy prices, rose slightly to an annual rate of 2.7% in August, up from 2.6% in July.

Despite this increase, the month-over-month core inflation figure remained stable at 0.1%, matching July’s rate.

Fed officials divided over future rate cuts

The cooling inflation figures come on the heels of a half-point interest rate cut by the Federal Reserve earlier this month.

The cut, which was larger than the typical quarter-point adjustment, was driven by signs of slowing inflation and labour market conditions.

“All quiet on the inflation front,” said Chris Larkin, managing director at E-Trade from Morgan Stanley in a CNBC report.

He added that inflation continues to moderate without economic growth showing significant signs of a downturn. He added:

Add today’s PCE Price Index to the list of economic data landing in a sweet spot. Inflation continues to keep its head down, and while economic growth may be slowing, there’s no indication it’s falling off a cliff.

The Federal Reserve has signalled another potential half-point reduction in November, with additional cuts likely in 2025.

However, not all Fed officials are convinced.

Fed Governor Michelle Bowman, the only official to vote against the half-point cut, has expressed concerns that such aggressive cuts could “unnecessarily” fuel demand and push prices higher.

Bowman’s caution reflects a more measured approach to rate cuts, with an emphasis on achieving the Fed’s inflation goal before easing further.

Meanwhile, Fed Governor Christopher Waller has voiced support for the larger cuts, citing August’s Producer Price Index (PPI) data, which showed a slowdown in wholesale prices.

Waller noted that lower PPI numbers signal lower consumer prices in the months ahead, justifying the more aggressive rate reduction.

All eyes on Fed’s November meeting

Despite the progress on inflation, personal spending and income data for August came in below expectations.

Personal income rose by just 0.2%, falling short of the 0.4% increase forecast by economists.

Personal spending also rose 0.2%, missing the 0.3% estimate.

Market reactions to the report were mixed. Stock market futures turned positive following the release, while Treasury yields dipped.

The inflation report strengthens the case for further rate cuts later this year. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said:

To the extent that inflation remains under control – and we continue to trend in that direction – the Fed can focus almost entirely on the labor market, which means a rate cutting bias.

However, Fed officials remain cautious, balancing the need to control inflation with the desire to support a labor market that has shown signs of weakening.

The upcoming Federal Reserve meeting will likely see continued debate over the pace of future cuts, as policymakers weigh inflation progress against broader economic trends.

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