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5 must-read articles for the evening | Isn’t the Federal Reserve allowed to own Bitcoin?

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Reprinted from jinse

12/19/2024·5M

1. Crypto “Black Thursday”: What factors lead to the market outlook?

At 3 a.m., the Federal Reserve announced its interest rate decision, cutting interest rates by 25 basis points. Then, Fed Chairman Powell held a monetary policy press conference at 3:30 a.m. Although altcoins have rebounded after the previous three FOMC meetings. However, after the Federal Reserve officially announced a 25 basis point interest rate cut, the market ushered in "Black Thursday", with Bitcoin falling below $100,000 and altcoins falling by 20%. What causes "Black Thursday"? What is the future direction of Fed policy? What do people in the industry think of the current market conditions? Click to read

2. The Trump administration’s encryption landscape

Trump’s official inauguration is getting closer. It also nominated its favorite cabinet members for the new government. There is no doubt that Trump, and some of his Cabinet nominees, are crypto-friendly. It is precisely thanks to the encryption-friendliness of the Trump administration and the interest rate cuts in the United States that the encryption industry has officially ushered in a bull market. For example, as WLIF, a project that is highly tied to the Trump family, continues to buy tokens such as AAVE, LINK, and ENA, these tokens have experienced considerable gains. Click to read

3. Outlook for 2025: Make DeFi great again

World Liberty Financial, founded by the Trump family and top figures in the crypto industry, is gradually influencing the direction of the industry, and their recent token purchases have also driven up secondary market prices. After Trump wins, key short-term crypto-friendly policies include: establishing a strategic Bitcoin reserve in the United States, legalizing cryptocurrencies, and supporting debt plans through the issuance of ETFs. Click to read

4. Isn’t the Federal Reserve allowed to own Bitcoin?

Overnight this morning, the Federal Reserve's December interest rate meeting ended as scheduled. The result was in line with market expectations, and interest rates continued to be cut by 25bp. This result exceeded the expectations of some people who had speculated that interest rates would be stopped. So far, since the second half of 2024, the Federal Reserve has cut interest rates three times, by 100bp, or 1%, reducing the US federal interest rate from 5.5% to 4.5%. Click to read

5.FTX launches compensation plan: Can the black swan of the past turn

around?

FTX, once the world's third largest crypto exchange, announced that it will launch a customer compensation plan in early 2025. The black swan incident of FTX in the past still affects the encryption industry. The funding crisis and market risks it exposed profoundly changed the industry structure. Today, we will review the beginning and end of FTX’s collapse and analyze how it faced the challenges of recovery. Click to read

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