Daily | The Federal Reserve announced a 25 basis point interest rate cut; Powell: The Fed is not allowed to own Bitcoin and has no intention of seeking to change the law; Changpeng Zhao met with the King of Bhutan and introduced Bitcoin to him
Reprinted from chaincatcher
12/19/2024·5MOrganized by: Luan Peng, ChainCatcher
Important information:
- Powell: We are at or near the point of slowing down interest rate cuts
- The Federal Reserve announced a 25 basis point interest rate cut
- Powell: Fed is not allowed to own Bitcoin and has no intention of seeking to change the law
- MicroStrategy seeks to build 'smart leverage', may turn to fixed-income securities to fund Bitcoin purchases
- The U.S. temporary spending bill is included in the "Deploy America Blockchain Act" to promote the development of blockchain technology
- Justin Sun’s team is suspected of putting pressure on CoinDesk to delete controversial reports, and the chairman of the media’s editorial board has resigned
- Changpeng Zhao met with the King of Bhutan and introduced Bitcoin to him
- Binance will support Mines of Dalarnia (DAR) token swap and brand upgrade to Dar Open Network (D)
"What important events happened in the past 24 hours?"
Powell: We are at or near the point of slowing down interest rate cuts
Fed Chairman Powell: (The addition of language about the magnitude and timing of interest rate adjustments in the statement) indicates that we are at or near a point in slowing down interest rate cuts. The slower pace of rate cuts reflects stronger economic data this year. It is argued that the policy remains substantively restrictive.
As long as the labor market and the economy remain healthy, we can remain cautious when considering further interest rate cuts. Inflation risks and uncertainties are believed to be high. (Golden Ten)
The Federal Reserve announced a 25 basis point interest rate cut
The Federal Reserve's 2024 annual interest rate resolution came to an end. The bank decided to lower the benchmark interest rate by 25 basis points to a range of 4.25%-4.50%, marking the third consecutive interest rate cut, in line with expectations.
In eight resolutions this year, the Fed has cut interest rates by a total of 100 basis points, including one 50 basis point cut, two 25 basis point interest rate cuts, and five other times keeping interest rates unchanged. (Golden Ten)
Powell: Fed is not allowed to own Bitcoin and has no intention of seeking to change the law
According to King Ten, Federal Reserve Chairman Powell said that the Federal Reserve has no intention of holding Bitcoin. "We are not allowed to hold Bitcoin," Powell said at a press conference after the FOMC meeting. "This is something for Congress to consider, but we have no intention of seeking to change the law."
MicroStrategy co-founder and chairman Michael Saylor said the company will shift from a leveraged Bitcoin agency program to a more focused focus on fixed-income securities to raise funds to buy the cryptocurrency once its current fundraising program is exhausted.
Saylor expressed this preference in an interview when asked how he expected to fund future cryptocurrency purchases. MicroStrategy has so far used a combination of new stock and convertible debt sales to fund purchases, the latter of which has rewarded shareholders as its shares rose to a price where they can be exchanged for shares.
"We have $7.2 billion of convertible debt, but $4 billion of that is equity in nature, they trade through strike prices, call prices, their delta is about 100%, they look like equity, and we want to get back," Saylor said. to build smarter leverage to benefit our common shareholders."
He said the company uses regulated exchanges such as Coinbase to purchase Bitcoin. MicroStrategy shares are up about 500% this year, far outpacing Bitcoin's roughly 150% rise.
Hedge funds have been looking to their fixed-income securities to implement convertible arbitrage strategies, buying bonds and shorting stocks, essentially betting on the volatility of the underlying stocks. That demand prompted MicroStrategy to issue $6.2 billion worth of convertible debt this year.
According to Decrypt, U.S. congressional leaders released a temporary spending bill on Tuesday aimed at averting a government shutdown and included encryption-related initiatives.
The bill would extend government funding until March 14, 2025, and currently includes the Deploying American Blockchains Act. The bill would enable the Commerce Department to make policy recommendations and assemble a government support group of industry experts on Capitol Hill.
The bill requires the Department of Commerce to support U.S. leadership in blockchain technology and establish a new "National Blockchain Deployment Advisory Committee" to evaluate the application of blockchain technology and tokenization in federal agencies and promote the United States' global leadership. Leading position in blockchain technology competitiveness.
According to Fortune, Justin Sun’s team was dissatisfied with the reports published by CoinDesk and pressured its new owner Bullish to delete relevant articles. The article detailed Sun’s behavior of buying and eating an art banana for $6.2 million, while also mentioning his legal dispute with the U.S. Securities and Exchange Commission and the controversy surrounding the Tron blockchain. After the article was removed, the CoinDesk editorial team expressed concerns about independence.
Bullish acquired CoinDesk last year for $75 million and committed to operating it as an independent subsidiary. However, the incident heightened tensions between the media and the owners. CoinDesk Editorial Board Chairman Matt Murray has resigned, while Bullish has not commented on the incident.
Changpeng Zhao met with the King of Bhutan and introduced Bitcoin to him
Binance co-founder Changpeng Zhao posted a photo of his meeting with the King of Bhutan on the X platform with the text: "Inspiring conversation."
In addition, when answering the question "Have you introduced Bitcoin to them" in the comment area, Changpeng Zhao replied: "Of course."
Binance will support Mines of Dalarnia (DAR) token swap and brand upgrade to Dar Open Network (D)
Binance will support Mines of Dalarnia (DAR) token swap and brand upgrade plan to Dar Open Network (D).
Binance will stop trading and delist all existing DAR spot trading pairs (DAR/USDT and DAR/TRY) at 11:00 on January 6, 2025 (Eastern District Time) , and will automatically remove all pending orders. Binance will open spot trading of D/USDT and D/TRY at 16:00 on January 9, 2025 (Eastern District Time) .
According to the latest research from NFT Evening, 14,211 new millionaires and four new billionaires have been created after Bitcoin broke through $100,000. Reports show that Bitcoin investors become millionaires 22 times faster than stock investors.
The study also compared the returns on a $4,000 investment in Bitcoin in 2010 with blue-chip stocks. More than 10 years later, Bitcoin investors' assets have grown to $1 million, while blue-chip investors' assets have only grown to $45,000. A Bitcoin investor who invested $30,500 in early 2011 became a billionaire about 12.7 years later, with a return of 32,787 times. During the same period, the assets of blue-chip investors increased by only $950,000, far less than the returns of Bitcoin investors.
The study also found that Bitcoin's returns far exceeded those of top U.S. stocks. Between 2010 and 2020, Bitcoin's growth was 76,378 times that of Apple's returns during the same period. Bitcoin's returns were compared to those of Microsoft, Amazon, and Tesla respectively. are 148,978 times, 66,330 times and 9,103 times.
Binance.US plans to resume its USD services in early 2025
According to Decrypt, Binance.US plans to resume U.S. dollar services in early 2025, after the exchange suspended fiat currency trading last year due to regulatory pressure.
"While I cannot confirm a launch date at this time, let me be clear, it is not a matter of if, but when," interim CEO Norman Reed said in a statement.
Binance survey: Memecoins have more holders than Bitcoin
Memecoins have more holders than Bitcoin, according to a user base survey conducted by cryptocurrency exchange Binance.
The survey showed that 16% of respondents reported holding meme coins, making it the most widely held cryptocurrency among respondents. Bitcoin (BTC) ranked second, with 14.44% of participants stating they had BTC in their wallets. The survey included more than 27,000 users from Asia, Australia, Europe, Africa and Latin America.
UBS: Economic data will still dominate Fed's future interest rate decisions
UBS said the Fed's next interest rate move will be guided by economic data. Although major global markets have reacted negatively to changes in the Fed's interest rate cutting cycle next year, the Fed will continue to monitor economic conditions and various data before taking any measures.
UBS said: "We believe the Fed remains data-dependent and that future economic indicators will continue to play an important role in determining the Fed's next move." Key indicators such as PCE inflation, the Fed's preferred measure of inflation, will play a role in shaping central bank policy. Key role, the data will be released this Friday. However, UBS expects inflation to slow in the coming months, which could affect the Fed's policy outlook. Additionally, employment data will remain an important factor as the Fed assesses the strength of the labor market and the resilience of the overall economy. (Golden Ten)
Lawyer says Yin Xiyue does not accept the charge of civil disorder
According to CCTV International News, Shi Dongxuan, the legal adviser to the impeached South Korean President Yin Xiyue, told the media that if there is anything that needs clarification from him during the trial of Yin Xiyue's impeachment case at the Constitutional Court, Yin Xiyue is willing to explain himself. Shi Dongxuan said that Yin Xiyue never thought of starting civil strife, so it is impossible for Yin Xiyue to agree with the charge of "civil strife".
CryptoQuant CEO Ki Young Ju posted on social media: "Domestic assets such as the Korean won are completely unattractive. The government did not realize this and just forcibly maintained prices, which caused the exchange rate to skyrocket. USDT traded on Upbit has reached the IMF crisis level exchange rate.
I personally believe that there is a huge outflow of national wealth happening right now. Many rich people I know are leaving Korea. Isn’t the outflow of national wealth just a report card reflecting the country’s metacognitive ability? He further pointed out: "The government should not forcefully retain capital that has fled overseas, but should think about how to allow capital to return voluntarily."
We need to nurture industries, provide incentives to investors, and open up business opportunities. I hope these unnecessary regulations can be stopped. Not knowing much about domestic politics, I don't know who could make such a change. As a Korean company, I have persisted for 7 years, but now I am also considering whether I should leave Korea. It's so frustrating. "
Binance Alpha announces the third batch of projects, including RIF, TERMINUS, etc.
According to official news, Binance Alpha announced the third batch of projects, which are:
BNB Chain: FROG, AICell, CGPT, MONKY
Ethereum: TERMINUS
Solana: GRIFFAIN, RIF, URO
Base: CLANKER, LUNAI
“What are some great articles worth reading in the past 24 hours?”
Chris Dixon’s latest opinion: In 2025, blockchain will further “decentralize” the AI-driven Internet
In 2025, blockchain alternatives will offer more choice, open source innovation, and community control options. They will carry the "holy fire" of an open Internet. Cryptocurrencies will begin to take power away from big tech companies and put it back into the hands of users.
The altcoin market is set for a sustained altcoin season.
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 very considerable increases.
The next market trend has become very clear. As the supervision of encryption in the United States gradually becomes clearer, DeFi-related projects will become one of the main lines of the next bull market. The Trump family’s projects continue to bet on DeFi projects, which is also a manifestation of this trend.
In terms of policy, the "21st Century Financial Innovation and Technology Act" is likely to be passed. After the bill is passed, it will clearly define when cryptocurrencies are commodities or securities. If the bill makes it clear that relevant tokens are judged to be decentralized and functional , are regarded as digital commodities and are not subject to SEC supervision, and will be exempted from the exemption period if they meet the centralization requirements, which will encourage DeFi projects to evolve in a more decentralized direction. In addition, the bill requires the SEC and CFTC to study the development of DeFi and evaluate its impact on traditional financial markets and potential regulatory strategies. This will attract more DeFi projects to "return" to the United States and promote the prosperity and development of the DeFi market.
It is precisely based on this regulatory change in the United States that DeFi has become an important narrative in this bull market.
As for Trump and his related projects, including Trump’s cabinet members, which projects are they buying and which projects are they supporting? What does this portend for the future development of encryption?
Meme Hot List
According to the Meme token tracking and analysis platform GMGN market data, as of 19:30 on December 19:
The top five popular Ethereum tokens in the past 24 hours are: PEPU, PATRIOT , LINK , PEPE, AGZRO
The top five popular Solana tokens in the past 24h are: ERROR , GOBLIN , NOJEETS , UFD , PENGU
The top five popular tokens in the past 24h Base are: VIRTUAL , PEPE , BRETT , MIGGLES , CATOF
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