Ex-Fed Chief Dudley Warns Stocks Are in Bubble Territory as Treasury Boosts Buybacks

Bill Dudley, a former president of the Federal Reserve Bank of New York, says the US stock market is in bubble territory, pointing to stretched valuations and a slowing artificial intelligence (AI) investment cycle.  Dudley made the comments on Bloomberg Television this week, as Treasury Secretary Scott Bessent moves to contain a sharp rise in long-term bond yields.  Sponsored  Sponsored  Stretched Valuations Underpin the Bubble Call  Dudley pointed to the Shiller CAPE ratio, the Shiller cyclically adjusted price-to-earnings (CAPE) ratio, which sits near 41. That compares with a 25 to 30-year average of about 17, and a record of 44 set in December 1999. In simple terms, investors are paying far more for each dollar of company earnings than history suggests is safe.  He also cited the Buffett Indicator, the ratio of stock market value to gross domestic product (GDP), which stands around 240%. Warren Buffett has said readings above 100% signal an overvalued market. This indicator is suggesting the stock market is strongly overvalued.  The Buffet Indicator is pointing to a severely overvalued stock market. Image Source: Long Term TrendsAI Spending Faces a Slowdown  Dudley expects capital expenditure (capex) growth among AI hyperscalers, the large cloud providers building AI infrastructure, to decelerate in 2027. That would squeeze

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Tensions Flare as CME, Kalshi Execs Clash Over Prediction Markets in DC

In briefCME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C.Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges.The clash comes amid a fight between federal and state regulators over prediction markets.  A CFTC roundtable on prediction markets turned heated Thursday when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded insults over market manipulation and regulation.  The confrontation unfolded during a Commodity Futures Trading Commission meeting in Washington, D.C., as executives from traditional finance, crypto, and prediction markets debated how event contracts should be regulated.  Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.  Duffy, whose CME Group operates the worlds largest futures exchange by volume, said he was “a lot concerned” about prediction markets and argued that some contracts are susceptible to manipulation.  “Were not a bunch of carnival barkers at a circus,” Duffy said. “We are running the most envious markets in the world in the United States of America.”  Duffy then took aim at the types of contracts Kalshi offers, mocking one in particular.  “Theres another really economic contract that has been massively important for the

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Ex-FBI Officer is Watching Every Polymarket Trader, Says CEO Coplan

Polymarket pays a former FBI staffer to watch its traders full time. Chief executive Shayne Coplan revealed the role to US regulators on Thursday.  He spoke at the first meeting of the Commodity Futures Trading Commissions Innovation Advisory Committee. His message was blunt. Polymarket users have almost no privacy.  Sponsored  Sponsored  Polymarket Surveillance Goes Further Than the Company Says  Coplan described the hire while defending his platform in Washington.  “We have someone here right now who… is ex-FBI who works full-time at Polymarket.”  That staffer built custom surveillance software in-house, he said. Outside firms were impressed it was not outsourced.  The detail is new. Polymarkets public integrity page names Chainalysis and Palantir as partners. It never mentions building tools of its own.  Coplan knew the news would sting. He said some users would be upset to hear it.  Sponsored  Sponsored  Subscribe to our YouTube channel to watch leaders and journalists provide expert insights  The Numbers Behind the Monitoring  Polymarket reports handing 315 or more wallet records to authorities. It also claims 90 or more account referrals and two arrests. The company gives no date for those totals.  Two traders learned what that means this year. In April, the CFTC charged Army Master Sgt. Gannon Ken Van Dyke over the Nicolas Maduro market.  He bought more than

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Bitcoin Rewarded 1 of 2 US Interventions. Bessent Just Promised More

Bitcoin (BTC) has traded through two US market interventions in under three weeks. It moved the opposite way each time. Support for the yen pushed it down. An attack on long yields lifted it 8.8%.  Treasury Secretary Scott Bessent went further on Thursday. He said buybacks could exceed $4 billion per issue and would become routine, while denying that rates drove the decision.  ???????? US TREASURY SECRETARY SCOTT BESSENT JUST NOW:  1. The Treasury will do buybacks routinely.  2. Buybacks could be more than $4 billion, and part of this is about sending a signal to the market.  3. He will probably announce a bigger push to cut the deficit.  4. There is nothing…  — Bull Theory (@BullTheoryio) August 20, 2026  Follow us on X to get the latest news as it happens  Sponsored  Sponsored  Two Interventions, Two Opposite Bitcoin Reactions  The pattern is narrower than it looks. Bitcoin does not reward intervention itself. It rewards the intervention that lowers long-dated US borrowing costs.  The first landed at the start of August. Japan bought its own currency with an estimated $53 billion. The New York Fed then bought yen for the Treasury on August 1.  Washington had not bought yen since 1998. Bitcoin still slipped toward $63,000, down 1.25%, while US stocks closed higher.  Leverage

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MicroStrategy Erases 2-Month Loss as Crypto Stocks Rally: Is the Damage Over?

Strategy, the company once called MicroStrategy (MSTR), rose 6.9% to $111.14 on Thursday afternoon. That is its best price since June 18, which wipes out a two-month slide.  The stock market has forgiven the company. The balance sheet has not. MicroStrategys Bitcoin is still worth billions less than it paid.  MicroStrategy (MSTR) Stock Performance. Source: Yahoo Finance  Sponsored  Sponsored  How MicroStrategy Clawed Back Two Months  MSTR traded at $111.45 as of 3.05 p.m. ET, up 6.91% from Wednesdays $104.25 close. The shares had bottomed at $81.81 in late June.  That is a 35.9% climb off the floor. July never produced a close above $101.95, so Thursdays move clears the whole summer.  The fuel came from Bitcoin topping $70,000, marking the first time in 78 days. The token had not held that level since early June.  Two decisions in Washington did the heavy lifting. On Wednesday the Treasury doubled the size of its long-end bond buybacks. Each operation will now buy at least $4 billion from Sept. 9.  A day earlier, the Securities and Exchange Commission (SEC) proposed Regulation Crypto Assets. The rule would let crypto firms raise up to $75 million a year without full registration.  Short sellers were caught out. Traders covered roughly $1.5 billion of bearish bets, including $700

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Anthropic IPO May Top SpaceX Record: Will It Raise $100 Billion?

Anthropic expects its stock market debut to match or beat the largest listing in history, according to people familiar with the matter. The bar is SpaceX, and it sits at $85.7 billion.  The Claude developer could file publicly for the offering as soon as the end of August. Chief Financial Officer Krishna Rao sidestepped valuation questions during recent investor briefings, the people said.  Sponsored  Sponsored  The Anthropic IPO Bar Sits at $85.7 Billion  SpaceX sold shares at $135 each in June and raised $75 billion. Underwriters then exercised an option on 83.3 million more shares on June 15. That lifted the total to $85.7 billion.  The scale is historic. Saudi Aramco had held the record since 2019 with $25.6 billion. Visas $17.9 billion in 2008 was the biggest US listing. SpaceX beat the three largest IPOs in history combined.  Bloomberg first reported Anthropics ambition on Thursday. Beating SpaceX means clearing $85.7 billion. A $100 billion raise would sit roughly 17% above that line. No source has named a target.  Anthropic expects to match or beat the size of SpaceX‘s record-setting initial public offering, according to people familiar with the matter, as preparations for the artificial intelligence firm’s debut pick up speed https://t.co/PJibk0Y1U7  — Bloomberg (@business) August 20, 2026  Anthropic Already

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Binance opens crypto trading to AI agents with user-set controls

Binance has launched Agent OS, a developer platform that allows AI agents to access market data, monitor user accounts and execute crypto trades on the exchange.  According to a company announcement, the platform supports AI tools including ChatGPT, Claude Code, Codex, and Cursor, allowing users to authorize agents to view account information and place trades within configured permissions and limits.  Users can assign agents to dedicated subaccounts to separate funds and trading activity, configure their permissions and revoke access at any time. Binance said it can monitor trades placed through Agent OS but cannot see an agent‘s external information sources, interpretation or decision-making, which occur within the user’s chosen AI application.  Agent OS also connects agents to Binances payment and onchain tools, allowing them to make payments and interact with wallets and other onchain services.  Related: Bitcoin miners pour billions into AI as capex outpaces revenue 15-to-1  Crypto exchanges move deeper into AI agents  Binance joins a growing group of crypto exchanges opening their trading infrastructure to AI agents.  Coinbase launched Coinbase for Agents in June, allowing AI models including ChatGPT and Claude to connect to user accounts and autonomously execute crypto trades and strategies. The tool also supports agent-driven payments through Coinbases x402 protocol.Source: Coinbase  Other exchanges

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Bitcoin breaks above 200-day moving average for first time since November

Bitcoins latest rally has pushed the cryptocurrency above a key long-term technical indicator for the first time in about nine months, offering a potential signal that its broader downtrend is losing momentum.  Charting platform Barchart highlighted on Thursday that Bitcoins (BTC) price had crossed above its 200-day moving average for the first time since November 2025, roughly a month after BTC reached an all-time high above $126,000.  The 200-day moving average is widely used to gauge longer-term market trends, with moves above the indicator often viewed as a sign of bullish momentum. A sustained break above the level could therefore suggest that Bitcoins months-long downtrend is beginning to weaken.  The move came as Bitcoin climbed to nearly $73,000 on Thursday, according to TradingView data.Source: Barchart  Bitcoin has gained more than 13% since Wednesday, when the US Treasury Department announced it would at least double the size of liquidity-support buybacks for longer-dated Treasury securities, raising the maximum from $2 billion to at least $4 billion per operation beginning Sept. 9.  The operation aims to improve liquidity at the long end of the Treasury market and initially pushed long-term yields lower, helping bolster risk appetite across financial markets.  Following the Treasury‘s announcement, Standard Chartered’s Geoff Kendrick said the

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What's Next for Bitcoin After Historic Rally? Experts Weigh In

In briefBitcoin climbed above $72,000 Thursday after gaining nearly 15% since Monday.Analysts pointed to Treasury bond purchases, policy headlines, and a massive short squeeze as drivers of the rally.With much of the short squeeze exhausted, analysts are watching spot demand, technical levels, and Treasury yields.  Bitcoins rally above $72,000 wiped out billions of dollars in bearish bets, but analysts say it will need fresh buyers to keep climbing.  Bitcoin reached its highest price since June on Thursday after gaining nearly 15% since Monday, with more than $3 billion in crypto short positions liquidated. Thats the largest liquidation of short positions on Bitcoin since at least 2021. Whats more, spot Bitcoin ETFs pulled in $517 million Wednesday, their largest single-day inflow since May.  Myriad: Bitcoin price next move? Click to make your prediction.  Julio Moreno, head of research at CryptoQuant, attributed the rally to the U.S. Treasury buying long-dated government bonds, which markets interpreted as increasing liquidity, and President Donald Trump suggesting that the U.S. government could purchase Bitcoin.  “The rally may be sustainable if spot demand growth continues after the initial impact of these macro events,” Moreno told Decrypt. “Officially we are still in a bear market, so a price pull back is possible, more

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Bitcoin whale moves $86M after 11 years of dormancy

A group of Bitcoin wallets dormant since 2014 has transferred 1,214.42 BTC worth about $86 million as the cryptocurrency traded near a weekly high of $72,400.  Dormant Bitcoin wallets move $94 million  Bitcoin.com reported on Aug. 20, citing btcparser.com data, that 28 long-inactive wallets moved a combined 1,314.41 BTC between Aug. 19 and Aug. 20.  The Bitcoin was worth approximately $94.03 million at the time of the transactions. Wallets created in 2014 accounted for 1,214.42 BTC, or 92.4% of the total, with the coins valued at about $86 million.  Rather than moving through one large transaction, much of the activity appeared in matching amounts. Twenty-one transfers each carried 50 BTC from addresses created in November or December 2014, according to the report.  Several transactions were recorded in the same Bitcoin blocks, including block 963203. Their timing, matching sizes, and common address format suggest that the wallets may have been controlled by one or a small number of holders, although the available blockchain data does not establish their ownership.  Alongside the 2014 coins, three wallets created in 2016 transferred a combined 79.99 BTC. Two addresses dating to 2017 moved another 20 BTC during the same 24-hour period.  The report said another wallet, first seen on Dec. 26, 2014,

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