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12 Feb 2026, 18:10
Tether plans to introduce its first AI applications based on QVAC
Tether CEO Paolo Ardoino has revealed the company’s AI assistant, QVAC. This initiative is Tether’s entry into the decentralized AI space, focusing on privacy and hardware accessibility rather than centralized cloud computing. Paolo Ardino shared a short demo on his X. He shows the tool running entirely on a local device. The assistant created and assigned tasks in Asana using simple natural language commands. Testing Tether's QVAC AI Assistant many skills already supported via MCP, using Asana in the example below (on a sub-average laptop GPU) 100% local inference/reasoning soon opensource pic.twitter.com/sYi91QhjVC — Paolo Ardoino 🤖 (@paoloardoino) February 12, 2026 The system uses “100% local inference and reasoning.” The demo ran on a laptop with a below-average GPU. That detail caught attention because most AI tools rely on powerful cloud servers. The assistant runs directly on the user’s device. It doesn’t send data to cloud servers. This approach fits the crypto philosophy of user control and privacy. Many cloud AI tools collect and store user data. QVAC aims to avoid that issue by keeping everything local. This matters more in finance and crypto, where users value control. The move also puts Tether into the growing AI race. Tether plans to introduce its first AI applications based on QVAC The system’s internal thinking process was reflected through the model thinking toggle buttons before the tool call process. The metrics displayed in the terminal for the model’s efficiency included a time of 1062.1 ms to generate the first token and a speed of 34.6 tokens per second. The assistant uses the Model Context Protocol (MCP). This system allows it to connect to different tools and services. It can add new “skills” without changing the core model. The company plans to introduce its first AI applications based on QVAC. Tether said it wants to create a decentralized AI ecosystem and usher in an era of unlimited intelligence. The firm’s CEO, Paolo Ardoino, argued that AI will make critical decisions in people’s lives, but the infrastructure is currently fragile, invasive, and opaque. Previously, the blockchain-enabled platform highlighted that QVAC’s modular architecture allows developers to build and extend applications using small, composable components. Tether added that its peer-to-peer networking facilitates direct device-to-device communication and collaboration without reliance on centralized servers. This will be possible through a consumer app for local on-device AI processing, called QVAC Workbench. So far, Tether has invested more in telecommunications, energy production, and artificial intelligence infrastructure. Tether first launched QVAC AI in May and further expanded the QVAC Genesis II AI Dataset to 148 billion tokens in December. The firm stated that its architecture allows the QVAC ecosystem to scale to trillions of AI agents and applications without points of failure while delivering a first-of-its-kind Infinite Intelligence swarm, cryptopolitan reported. The upcoming open-source release will be the ultimate test of whether this tool can attract interest from the broader developer community and provide a feasible path for decentralized digital assistants. Tether expands its assets that back USDT Tether’s USDT continues to dominate with a market capitalization of $184 billion, according to DefiLlama data. USAT, the stablecoin firm’s US-domiciled outfit that launched last month, had a circulating supply of just $20 million. It has expanded the assets that back its flagship, market-leading stablecoin, USDT. Between September 2024 and November 2025, the share of “high risk” assets, such as gold and Bitcoin, backing USDT rose from 17% to 24%, while the share of US Treasury bills fell from 81% to 75%, according to S&P Global. According to Bo Hines, CEO of Tether’s US arm, Tether could soon become one of the top 10 buyers of US Treasury bills. USDT now has roughly $185 billion in circulation and serves an estimated 530 million users, adding about 30 million new users each quarter. To back this supply, Tether holds more than $122 billion in the US Treasury bills, accounting for over 83% of its reserves. At current levels, Tether ranks among the top 20 global holders of U.S. government debt, between major sovereign nations like Germany and Saudi Arabia. Tether has become one of the world’s largest holders of gold, rivalling countries and multinational banks. Last year, it also became the third-largest shareholder in Adecoagro, Argentina’s largest producer of milk and rice. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
12 Feb 2026, 18:00
Federal Reserve Bank of Kansas City chief Jeffrey Schmid signals cautious optimism for 2026
The United States Federal Reserve Bank of Kansas City, Missouri, recently held a speech at the Economic Forum of Albuquerque, New Mexico, to discuss monetary policy and the economic outlook of the country for 2026. The President and CEO of the Kansas City Fed , Jeffrey Schmid, gave a speech on Wednesday to a large group of local business leaders, policymakers, economists, and financial professionals. The Kansas City Fed is one of twelve regional Reserve Banks that help shape national monetary policy. The speech was held at the Economic Forum of Albuquerque, an annual event where various parties convene to discuss both regional and national economic matters. The main focal point of Schmid’s speech was to convey where the U.S. economy currently stands and is headed going into the new year. Schmid had a rather positive outlook on the direction of the U.S. economy in 2026 despite the current uncertainty that has shaken up financial markets. Key talking points of his speech beyond his overall economic outlook included productivity trends and AI, inflation and monetary policy, and the Federal Reserve’s balance sheet. He also addressed supply versus demand-driven growth, demand dynamics, and how price shocks should be interpreted. Jeff Schmid’s speech and 2026 U.S. economic outlook Schmid opened the speech by talking about the Kansas City Fed’s role in the U.S. Federal Reserve’s regional structure, addressing local economic information for their region, and how it helps shape national monetary policy. From there, he broadened his scope to the overall economic outlook of the U.S. in 2026. Schmid stated that Gross Domestic Product (GDP) expanded by 4.4% in the third quarter of 2025, and other available data from the end of last year showed the economy remained resilient through the end of 2025. This was mainly led by consumer spending and AI-related investments. He took a rather cautious stance when speaking on inflation, essentially stating that you can’t assume it will fall because of strong GDP numbers. On one hand, he stated that supply-driven economic growth, which can be boosted by factors like increased AI-driven productivity, is disinflationary. Demand-driven growth, on the other hand, is not. This happens when consumer spending increases, credit expands, and financial conditions loosen. Inflation has been running above the Fed’s target for close to five years. This suggests that while demand could still be strong, the economy may also continue to be running above sustainable capacity. When determining the proper course for monetary policy, Schmid believes that it is important to understand the source of economic growth. Strong GDP numbers do not justify rate cuts if the growth is demand-driven. However, if this growth is supply-driven, monetary easing would be justified. This being the case, Schmid believes the Fed must refrain from easing monetary policy until the source of U.S. economic growth is determined. Artificial Intelligence, monetary policy, and Fed balance sheet Jeff Schmid believes recent productivity trends allude to economic growth that is at least partially supply-driven. He stated that even though hiring remained low in 2025, productivity still increased without payrolls doing the same. This could reflect the large-scale adoption of AI and how businesses have been able to cut costs through its utilization while still boosting output. However, Schmid doesn’t believe there is enough data to support this. Instead, he attributed the situation to a “low-hire/low-fire/low-quit labor market,” while stating that business investment in AI has contributed to demand-driven economic growth. Schmid remains optimistic that AI and other technological innovations will lead to a “non-inflationary, supply-driven growth cycle” in the future. Regarding monetary policy, Schmid supported the Federal Open Market Committee ( FOMC ) decision to pause rate cuts in January. He emphasized that it is their job to keep inflation near 2% and maintain full employment. As inflation is currently running closer to 3%, he believes it is appropriate to maintain a relatively restrictive stance towards monetary easing to prevent sustained inflation. The central bank’s response to inflation will ultimately determine whether price shocks will be temporary or lasting. Jeff Schmid’s overall position on the Fed balance sheet is that it should grow only to maintain rate control and liquidity and should eventually be downsized as time progresses. He believes the Fed currently has too large a footprint in financial markets and that it needs to continue winding down on mortgage-backed securities to focus on a smaller, Treasury-focused balance sheet in the future. If you're reading this, you’re already ahead. Stay there with our newsletter .
12 Feb 2026, 18:00
‘A huge mistake’: Why Peter Schiff thinks Bitcoin buyers got it wrong
A decade-long debate intensifies as fresh data fuels arguments on both sides of the gold versus Bitcoin rivalry.
12 Feb 2026, 18:00
US Dollar Index Churns Near 97.00: A Critical Pivot Point for Global Markets
BitcoinWorld US Dollar Index Churns Near 97.00: A Critical Pivot Point for Global Markets On Thursday, the financial world’s primary barometer for dollar strength, the US Dollar Index (DXY), exhibited a notable pattern of consolidation, churning near the psychologically significant 97.00 level. This pivotal movement, observed in New York trading sessions, signals a moment of equilibrium as traders globally assess a complex mix of economic data, central bank signals, and geopolitical currents. Consequently, this price action creates far-reaching implications for forex pairs, international trade, and commodity valuations, demanding a thorough examination of the underlying forces at play. US Dollar Index Churns: Decoding the 97.00 Level The US Dollar Index, which tracks the dollar’s value against a basket of six major world currencies, often finds itself at critical junctures. The 97.00 level represents one such technical and psychological threshold. Historically, this zone has acted as both support and resistance, making its current relevance paramount. Market analysts frequently scrutinize consolidation near these levels for clues about future directional bias. For instance, a sustained hold above 97.00 could signal building momentum for further dollar appreciation. Conversely, a failure to break decisively higher might indicate underlying weakness and potential for a retracement. Several immediate factors contributed to Thursday’s churn. Firstly, mixed economic data releases created a balanced market sentiment. Secondly, Federal Reserve officials delivered nuanced commentary, avoiding strong directional guidance. Thirdly, comparable movements in European and Asian currency markets created offsetting pressures. This confluence of events resulted in the observed sideways trading pattern, where neither bulls nor bears established clear dominance. Currency in DXY Basket Weight Recent Trend vs. USD Euro (EUR) 57.6% Mixed, slight weakness Japanese Yen (JPY) 13.6% Consolidating British Pound (GBP) 11.9% Moderate strength Canadian Dollar (CAD) 9.1% Commodity-driven volatility Swedish Krona (SEK) 4.2% Stable Swiss Franc (CHF) 3.6% Safe-haven flows Fundamental Drivers Behind the Currency Market Stalemate Beyond the charts, fundamental economic forces anchor the DXY’s movement. The index’s churn directly reflects a market digesting competing narratives. On one hand, relative US economic strength, particularly in labor markets and consumer spending, provides a foundational bid for the dollar. On the other hand, evolving expectations for interest rate differentials between the Fed and other major central banks apply countervailing pressure. Furthermore, global risk sentiment, often measured by equity market performance, plays a crucial role. A ‘risk-on’ environment can weaken the dollar’s safe-haven appeal, while ‘risk-off’ sentiment typically strengthens it. Key data points from the prior week created this balanced backdrop. Inflation metrics showed signs of moderating but remained above central bank targets. Meanwhile, manufacturing and services PMI data presented a mixed picture across different regions. Additionally, geopolitical developments introduced a layer of uncertainty, prompting caution among currency traders. This careful positioning explains the lack of a decisive trend, resulting in the churning price action observed on Thursday. Interest Rate Expectations: Markets are pricing in a cautious Fed path. Inflation Dynamics: Core PCE data remains the Fed’s preferred gauge. Global Growth Divergence: The US economy continues to outperform many peers. Liquidity Conditions: Central bank balance sheet policies influence currency valuations. Expert Analysis: Interpreting the Consolidation Phase Financial strategists often view consolidation phases like the current one as periods of accumulation or distribution. According to historical market analysis, a prolonged churn near a key level like 97.00 often precedes a significant breakout. The direction of that breakout, however, depends on which fundamental narrative gains dominance. For example, if upcoming non-farm payroll data surprises to the upside, it could catalyze a move toward 98.00. Alternatively, dovish shifts from other central banks could see the DXY test lower support levels. Technical analysts note that moving averages and momentum indicators are currently converging, a classic sign of an impending volatility expansion. Market veterans reference similar periods in recent history, such as the prolonged range-trading in Q2 2023, which eventually resolved with a strong directional trend. The current environment shares characteristics with that period, including balanced positioning and awaiting a clear macroeconomic catalyst. Therefore, traders are advised to monitor volume profiles and option market activity for early signals of the next sustained move, rather than attempting to predict the churn’s immediate end. Broader Market Impact and Historical Context The DXY’s behavior near 97.00 has immediate ripple effects across asset classes. A stronger dollar typically pressures dollar-denominated commodities like gold and oil, making them more expensive for holders of other currencies. Conversely, a weaker dollar can provide a tailwind for these assets. For multinational corporations, the index level directly translates to foreign earnings valuations. Moreover, emerging market economies with dollar-denominated debt watch the DXY closely, as sustained strength increases their repayment burdens. Placing the current level in a longer-term context is instructive. Over the past decade, the DXY has traded within a broad range, with 97.00 sitting near the midpoint of its post-2015 trading band. This historical perspective suggests the current price is in a neutral, mean-reverting zone rather than at an extreme. Previous sustained breaks above this level have coincided with periods of pronounced monetary policy divergence, such as during the Fed’s hiking cycle of the mid-2010s. Understanding this history helps frame the current stalemate not as an anomaly, but as a typical market behavior at a well-established equilibrium point. Conclusion The US Dollar Index churning near 97.00 on Thursday represents a critical inflection point for global financial markets. This consolidation reflects a delicate balance between competing economic fundamentals, central bank policies, and global risk sentiment. The outcome of this stalemate will have significant implications for forex pairs, international trade, corporate earnings, and commodity prices. As the market awaits clearer directional catalysts, the 97.00 level on the DXY serves as a key technical and psychological benchmark that traders and economists will monitor with intense scrutiny in the coming sessions. The resolution from this churn will likely set the tone for broader currency market trends for the subsequent quarter. FAQs Q1: What is the US Dollar Index (DXY)? The US Dollar Index is a geometrically-averaged measure of the value of the United States dollar relative to a basket of six major world currencies: the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. It serves as the leading benchmark for the dollar’s international strength. Q2: Why is the 97.00 level significant for the DXY? The 97.00 level is a major technical and psychological threshold. It has historically acted as both strong support and resistance. A sustained move above or below this level often signals a shift in medium-term market sentiment and can trigger algorithmic trading flows, making it a key focal point for analysts. Q3: How does a churning or consolidating DXY affect other markets? A consolidating DXY suggests uncertainty and balanced forces. This often leads to range-bound trading in major forex pairs like EUR/USD and GBP/USD. It can also reduce volatility in dollar-denominated commodities like gold and oil, as currency effects become a neutral factor. However, it may increase focus on individual asset fundamentals. Q4: What fundamental factors typically cause the DXY to move higher? The DXY generally strengthens on relative US economic outperformance, expectations of higher US interest rates compared to other nations, periods of global risk aversion where the dollar acts as a safe haven, and geopolitical instability that increases demand for dollar liquidity. Q5: Where can I find real-time data on the US Dollar Index? Real-time quotes for the US Dollar Index are available on major financial data terminals like Bloomberg and Refinitiv, through forex trading platforms offered by brokers, and on financial news websites that provide market data sections. The index trades nearly 24 hours a day under the symbol DXY. This post US Dollar Index Churns Near 97.00: A Critical Pivot Point for Global Markets first appeared on BitcoinWorld .
12 Feb 2026, 17:50
Initial Jobless Claims Plunge to 227K: Resilient Labor Market Defies 2025 Economic Uncertainty
BitcoinWorld Initial Jobless Claims Plunge to 227K: Resilient Labor Market Defies 2025 Economic Uncertainty WASHINGTON, D.C. – May 15, 2025 – The United States labor market demonstrated remarkable resilience last week as initial jobless claims decreased to 227,000, according to data released Thursday by the Labor Department. This significant drop from the previous week’s revised figure of 239,000 represents the lowest level in six weeks, consequently providing crucial evidence of ongoing economic stability amid global uncertainties. Furthermore, this development arrives at a critical juncture for Federal Reserve policymakers who are closely monitoring employment indicators ahead of their June meeting. Initial Jobless Claims Analysis: A Deep Dive into the 227K Figure The weekly initial jobless claims report serves as a real-time pulse check on the American labor market. Last week’s decline to 227,000 filings for unemployment benefits marks a substantial improvement. To provide context, the four-week moving average, which smooths out weekly volatility, also fell to 234,750. This metric offers a more stable view of underlying trends. Historically, claims consistently below 250,000 strongly indicate a tight labor market where employers retain workers despite economic headwinds. For comparison, the pre-pandemic average in 2019 hovered around 218,000, suggesting the current level reflects a near-normal, healthy employment environment. Several key sectors contributed to this positive trend. Notably, manufacturing and professional services reported fewer layoffs. Meanwhile, the transportation and warehousing sector showed stability after previous volatility. Regional data revealed declines in filings across multiple states, including California, Texas, and Illinois. This broad-based improvement suggests the strength is not isolated. The continued low level of claims underscores the fundamental durability of job creation in the current economic cycle. Labor Market Context and Economic Implications The labor market remains the cornerstone of U.S. economic strength in 2025. A low level of jobless claims directly correlates with sustained consumer spending, which drives approximately 70% of economic activity. When fewer individuals file for unemployment, household incomes remain stable, thereby supporting retail sales and service sector growth. This creates a positive feedback loop for the broader economy. The current data aligns with other robust indicators, including a steady unemployment rate near 3.8% and consistent monthly job gains exceeding 150,000. However, analysts also examine continuing claims, which represent individuals already receiving benefits. This figure, reported with a one-week lag, provides insight into how long people remain unemployed. Recent trends in continuing claims will be critical for assessing whether the labor market is simply avoiding layoffs or also successfully re-employing those who do lose jobs. The overall picture suggests employers are hesitant to reduce headcount due to persistent difficulties in finding skilled labor, a legacy of demographic shifts and changing workforce preferences. Expert Analysis and Federal Reserve Policy Impact Economists from major financial institutions immediately weighed in on the report’s implications. “The claims data is a clear signal that the labor engine continues to hum,” stated Dr. Anya Sharma, Chief Economist at the Brookings Institution. “While we see moderation in hiring from the frenetic pace of 2022-2023, the foundational demand for workers remains intact. This gives the Federal Reserve less urgency to cut interest rates aggressively.” The Federal Reserve’s dual mandate focuses on maximum employment and price stability. Strong employment data reduces pressure on the Fed to stimulate the economy. Consequently, policymakers may maintain a “higher for longer” interest rate stance to ensure inflation sustainably returns to their 2% target. Markets now closely watch for any shift in tone from Fed officials regarding the timing of potential rate adjustments. The resilience shown in this jobs data supports the argument for continued patience before implementing monetary easing. Historical Comparison and Sectoral Breakdown Understanding the significance of 227,000 claims requires historical perspective. The table below shows key benchmarks: Period Average Initial Jobless Claims Economic Context Pre-Pandemic (2019) ~218,000 Strong, stable expansion Pandemic Peak (April 2020) 6.1 Million Economic shutdown 2023 Average ~237,000 Post-pandemic normalization Current Week (May 2025) 227,000 Mature expansion, moderating growth The sectoral data, while not detailed in the headline number, reveals important trends. Technology sector layoffs, which saw a spike in early 2024, have largely subsided. Conversely, healthcare and education services continue to show very low layoff rates due to structural demand. The goods-producing sector remains stable, indicating balanced economic growth rather than over-reliance on services. This diversification helps buffer the labor market against sector-specific downturns. Global Economic Backdrop and Future Outlook The U.S. labor market’s performance stands in contrast to several other advanced economies. The European Union and China have reported softer employment data in recent months, making American resilience particularly noteworthy. This divergence supports the relative strength of the U.S. dollar and influences global capital flows. Looking ahead, economists monitor several potential risks: Geopolitical tensions affecting supply chains and business confidence The pace of technological adoption and AI integration in workplaces Demographic pressures from an aging population Corporate profit margins and their impact on hiring plans The consensus forecast suggests initial jobless claims will likely fluctuate between 220,000 and 250,000 for the remainder of 2025, barring an external shock. This range would be consistent with a gradual economic cooling rather than a sharp downturn. The Labor Department’s next major report, the monthly Employment Situation Summary, will provide deeper insights into wage growth and labor force participation, completing the picture painted by the weekly claims data. Conclusion The decrease in initial jobless claims to 227,000 last week provides compelling evidence of the U.S. labor market’s enduring strength. This key indicator reflects underlying economic stability, supports consumer confidence, and informs critical monetary policy decisions. While challenges persist, including inflationary pressures and global uncertainty, the fundamental health of employment remains a pillar of the economic outlook. As the Federal Reserve navigates its policy path, data like this week’s jobless claims will continue to serve as an essential guidepost for the nation’s economic trajectory in 2025 and beyond. FAQs Q1: What are initial jobless claims? A1: Initial jobless claims represent the number of individuals who have newly filed for unemployment benefits during a given week. They are a leading, high-frequency indicator of labor market health, showing the flow of workers into unemployment. Q2: Why is the 227,000 figure significant? A2: A figure of 227,000 is significant because it is well below the 250,000 threshold that economists often associate with a strong labor market. It indicates that layoffs remain low and employer demand for workers persists, contributing to overall economic stability. Q3: How does this data affect the Federal Reserve’s decisions? A3: Strong jobless claims data suggests the labor market is tight, reducing immediate pressure on the Federal Reserve to cut interest rates to stimulate employment. It allows the Fed to maintain a focus on combating inflation without worrying about triggering a sharp rise in unemployment. Q4: What is the difference between initial and continuing claims? A4: Initial claims count new filings for unemployment benefits. Continuing claims, reported a week later, count the total number of individuals already receiving benefits. Together, they show both the inflow to and the duration of unemployment. Q5: Can weekly jobless claims data predict a recession? A5: While not a perfect predictor, a sustained and significant rise in initial jobless claims (typically consecutive weeks above 300,000) often precedes a recession. Conversely, consistently low claims, as seen currently, suggest the economy is expanding and a downturn is not imminent. This post Initial Jobless Claims Plunge to 227K: Resilient Labor Market Defies 2025 Economic Uncertainty first appeared on BitcoinWorld .
12 Feb 2026, 17:48
Standard Chartered Cuts Crypto Forecasts as Market Downturn Deepens
Standard Chartered revised its 2026 forecasts, warning of further crypto market declines this year. Bitcoin and Ethereum targets were cut, but the bank’s long-term outlook remains optimistic. Continue Reading: Standard Chartered Cuts Crypto Forecasts as Market Downturn Deepens The post Standard Chartered Cuts Crypto Forecasts as Market Downturn Deepens appeared first on COINTURK NEWS .
