[News Brief] Apr 22, morning | Federal Reserve Considers Possibility of Additional Rate Hikes, Emphasizes Need for Further Tightening if Inflation Exceeds Target

U.S. spot Bitcoin ETFs and Ethereum ETFs recorded net outflows of 4,374 BTC and 35,904 ETH, respectively.

Odaily, citing Lookonchain monitoring, reported that U.S. Solana ETFs saw net inflows of 27,115 SOL. ETF flow data is used as a short-term supply and demand indicator reflecting institutional capital movements in major cryptocurrencies.

According to Odaily, on the 20th local time, Iranian President Masoud Pezeshkian held talks with visiting Pakistani Interior Minister Mohsin Naqvi.

The two sides discussed the regional situation, bilateral relations, and the progress of diplomatic negotiations, with a focus on reviewing the latest developments in indirect U.S.-Iran talks and related consultation procedures.

The Pakistani side conveyed its position on recent regional developments and stressed the importance of dialogue and mutual understanding to ease tensions.

President Trump said that negotiations between the United States and Iran have entered the final stage.

The remarks came amid ongoing tensions between the two countries over nuclear and sanctions-related issues. Progress in the negotiations could affect Middle East geopolitics and risk-asset investor sentiment.

According to Odaily, minutes from the U.S. Federal Reserve showed that discussions of rate cuts have effectively retreated, while the possibility of additional rate hikes has resurfaced.

According to a Wall Street Journal analysis, Fed officials focused less on whether to cut rates—previously the center of debate in the Federal Open Market Committee over the past two years—and more on whether further tightening may be necessary if inflation continues to run above the 2% target.

The minutes stated that “a majority of participants emphasized that if inflation were to remain stubbornly above 2 percent, it could become appropriate to further tighten policy.”

These minutes were the record of the final meeting chaired by Federal Reserve Chair Jerome Powell and also reflected the impact of Middle East tensions on the outlook for rate decisions. Kevin Warsh is set to lead the Fed after being sworn in at the White House on Friday.

The Fed’s next policy meeting is scheduled for June 16–17.

Source: Watcher.Guru

Watcher.Guru reported that President Trump directed the U.S. government to overhaul regulations to integrate digital assets into the traditional financial and payments system.

The directive is interpreted as focusing on revising the regulatory framework so that digital assets can be used within existing financial infrastructure.

The CME, the world’s largest futures exchange, said that enactment of the Clarity Act would strengthen Bitcoin’s standing in financial markets.

According to Bitcoin Magazine, CME said that if the Clarity Act becomes law, it would help solidify Bitcoin’s position as a sustainable asset within the financial system.

The Clarity Act is a bill related to establishing a regulatory framework for digital assets in the United States, and the market views it as a factor that could boost expectations for broader institutional adoption.

According to Wu Blockchain, decentralized derivatives trading protocol Variational raised $50 million in a Series A round led by Dragonfly Capital.

Bain Capital Crypto and Coinbase Ventures also participated in the round.

The fundraising comes amid continued demand for expanding DeFi derivatives trading infrastructure.

Coinbase and Flipcash have launched USDF, a custom Solana-based stablecoin, according to Odaily.

USDF is part of Coinbase’s custom stablecoin program, which allows companies and protocols to issue their own branded dollar-pegged stablecoins for use in payments, payroll, and cross-border settlements.

The program focuses on simplifying the issuance and use of stablecoins for businesses while maintaining regulatory compliance.

Two U.S. spot ETFs tracking Hyperliquid (HYPE) recorded around $22.3 million in net inflows during their first week after launch, PANews reported on the 20th, citing The Block.

According to the report, 21Shares’ THYP and Bitwise’s BHYP attracted more than $11 million in a single day on Tuesday. Analysts said that, on a market-cap-adjusted basis, their returns over the first six trading days outpaced spot Bitcoin ETFs by three days and spot Ethereum ETFs by five days.

On-chain data showed that Hyperliquid recently accounted for more than 42% of all blockchain transaction fees. Most of HYPE token revenue has been used for buybacks through a support fund, and Bitwise previously said that part of BHYP’s management fees would be used to buy and stake HYPE.

Binance founder Changpeng Zhao (CZ) said he currently sees no asset capable of replacing Bitcoin.

According to Wu Blockchain, CZ said on the Crypto Banter podcast that he still spends 80% to 90% of his time in the blockchain sector and that Bitcoin continues to maintain its dominant position.

The remarks came amid ongoing debate over Bitcoin’s long-term role and standing in the market.