This episode of Markets Daily is sponsored by Kraken. It's Thursday, September 21st, 2023, and this is Markets Daily from CoinDesk. My name is Noelle Acheson, CoinDesk collaborator and author of the Crypto's Macro Now newsletter on Substat. On today's show, we're talking about some relief in potential Bitcoin selling pressure, renewed concerns about crypto's largest stablecoin, and South Korean offshore crypto holdings. So you don't miss an episode, be sure to follow the podcast on your platform of choice. And just a reminder, CoinDesk is a news source and does not provide investment advice. Now, a markets roundup. Assets around the world reacted with surprise yesterday at the FOMC statement that left U .S. rates unchanged, but that also loudly signaled that U .S. rates will remain higher for longer. Among the more surprising moves was the lifting of the FOMC projection for the Fed funds rate at the end of 2024. This has moved up to 5 .1 % from 4 .6%, effectively taking two rate cuts off the trading at $26 ,415, according to CoinDesk indices. Ether was down 3 .3%, trading at $1 ,577. Despite declining correlations, macro sentiment still weighs heavily on crypto markets. Higher rates weaken the short -term investment case by reducing overall monetary liquidity. This especially hurts long duration, high volatility assets. A stronger dollar further impacts the crypto market by pushing up the denominator of the most often traded pair, which is Bitcoin in U .S. dollar terms. And low -risk yields of over 5%, such as those available in some U .S. treasuries and money market funds, are likely to incentivize a preference for safer assets. In traditional markets, U .S. stocks and bonds moved to a higher -for -longer stance. The S &P 500 closed down 0 .9 % yesterday and looks weak in trading today. It is currently down a further 1 % from yesterday's close. The Nasdaq is faring somewhat worse, down 1 .4%, while the Dow Jones is down 0 .6%. Bond yields shot up yesterday in reaction to the FOMC messaging, with both the two -year and ten -year Treasury yields reaching their highest levels since 2006 and 2007, respectively. After falling in sympathy with their U .S. cousins at the open today, U .K. stocks have largely been recovering this morning, with the FTSE 100 up almost 0 .5 % from the open. Investors appear to be encouraged by the Bank of England's decision to cause rate hikes for the first time in nearly two years, despite inflation at 6 .7%. Concern about the state of the U .K. economy no doubt weighed on that decision. Last week, we saw U .K. GDP and industrial production data amid notably worse than expected. And while inflation is still a serious problem, it seems to be heading in the right direction. European stocks have unfortunately not had a similar boost. Both the DAX and the EuroStock 600 are down over 1 .1 % on the day. In Asia, Japan's Nikkei index followed Wall Street down, dropping 1 .4%. The Bank of Japan announces its decision on rates tomorrow, but consensus forecasts are signaling no change. China stocks were also weak. The Shanghai Composite fell by almost 0 .8%, while the Hang Seng fell almost 1 .3%. In commodities, the Brent crude benchmark slid earlier this morning, as concerns about global economic growth weakened the demand outlook. At one stage, the price had dropped to below $93 per barrel. It has since rebounded, and is currently just above $94. Gold took on board the climb in the U .S. dollar by retreating off its multi -week highs. Earlier today, it was trading at around $1 ,925 per ounce. Stay tuned. After the break, we'll take a look at Bitcoin's sellering pressure, weather concern again, and offshore crypto holdings.