“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” — Warren Buffett

1. Fed Hikes 75 Basis Points, Powell Says 75 or 50 Likely in July — the Federal Reserve raised interest rates by 75 basis points — the biggest increase since 1994 — and Chair Jerome Powell signaled another big move next month, intensifying a fight to contain rampant inflation. He said another 75 basis-point hike, or a 50 basis-point move, was likely at the next meeting of policy makers. They forecast interest rates would rise even further this year, to 3.4% by December and 3.8% by the end of 2023.
2. Bitcoin Price Falls Toward $20,000 as Cryptocurrency Rout Deepens — Cryptocurrencies extended their slide, with bitcoin on the verge of falling below $20,000 for the first time since December 2020. The rout in cryptocurrencies has wiped out roughly 1½ years of gains for bitcoin, which started to soar at the end of 2020 as speculative fervor washed over financial markets. Two high-profile incidents in recent weeks have accelerated cryptocurrencies’ fall. In May, the collapse of stablecoin TerraUSD and its sister token Luna prompted a selloff across cryptocurrencies.
3. Celsius Is Crashing, and Crypto Investors Are Spooked — late last week, Celsius said it was no longer allowing customers to withdraw cash from their accounts. Last Tuesday night, The Wall Street Journal reported that Celsius hired restructuring attorneys to help handle its mounting financial problems. Prices for bitcoin and other cryptocurrencies have been plummeting as interest rates rise and risky assets turn unpopular. The difficult market is forcing once-highflying digital-currency companies to slash jobs, halt mergers and bar clients from withdrawing digital investments, shocking investors. Individual investors might not have realized when they put money in Celsius that they were giving the company an unsecured loan with little legal protection. Crypto companies such as Celsius look like banks in some ways, but they lack the investor oversight and legal protections built into banks and brokerages.

The week ahead — Economic data from Econoday.com: