Yellow Capital Blog/Weekly Crypto Digest/Weekly Crypto Digest for December 11 - 17, 2023

Weekly Crypto Digest for December 11 - 17, 2023

Monday, December 18, 2023

In the latest issue of Weekly Crypto Digest read more about how the US economy is getting better, SEC Changed Its Position on Bitcoin ETFs, KuCoin will pay $22 million to New York prosecutors, Trump has released NFTs with his prison photo, and more crypto news.

Bitcoin NFT added to the US National Vulnerability Database

On December 10, 2023, a Bitcoin NFT based on the Ordinals protocol was added to the US National Vulnerability Database (NVD). This happened after Bitcoin Core team member Luke Dashjr accused them of “spamming” the blockchain.
According to a post on the NVD website, the vulnerability, labeled CVE-2023-50428, is currently awaiting analysis. Note that bugs marked CVE are classified as those that can affect the integrity of the entire system.

CPI - 3.1%, interest rate 5.25-5.5%

In November 2023, the consumer price index (CPI) in annual terms was 3.1%. This follows from a report by the Bureau of Labor Statistics (BLS) at the US Department of the Treasury.
And on December 13, 2023, a meeting of the Federal Open Market Committee (FOMC) was held. Upon completion, the regulator announced its decision on the interest rate, leaving the indicator unchanged at 5.25-5.5%.

Jerome Powell's statements during the FOMC meeting

Jerome Powell at press-conference

After the FOMC meeting, the head of the regulator, Jerome Powell, gave a press conference. Here are the key points:
1. Tight policies exert downward pressure on economic activity. The full effect of the regulator's actions is likely to have yet to be seen;
2. Compared to the third quarter of 2023, the growth of economic activity has slowed down significantly;
3. By the end of the year, GDP growth is likely to be 2.5%, supported by strong consumer demand;
4. The labor market remains tight. The average increase was 204,000 jobs per month. This is a good indicator, but it is lower than previous values in 2023;
5. Unemployment rate - 3.7%. The forecast by the end of 2024 is 4.1%, which is likely to put upward pressure on inflation;
nominal wage growth is slowing down;
6. Long-term inflation expectations are firmly entrenched. The regulator welcomes the slowdown in the growth rate of the consumer price index, but this is not enough to lower the interest rate;
7. Inflation forecast for 2024 - 2.4%. For 2026 - 2%. Let us recall that this is the level that the Fed sets as its goal when pursuing a “hawkish” policy;
8. The regulator believes that the current rate - 5.25-5.5% - is at the peak of the current cycle of tightening financial and credit measures. However, progress towards further achieving inflation is not guaranteed, and the Fed, if necessary, will increase the rate further;
9. Forecast for the rate for 2024 - 4.6%. At the end of 2025 - 3.6%. At the end of 2026 - 2.9%. However, this is still above the median long-term rate.

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SEC Changes Its Position on Spot Bitcoin ETFs Following Recent Court Cases

The head of the Securities and Exchange Commission (SEC) of the United States, Gary Gensler, stated that the regulator had changed the agency's course towards spot bitcoin ETFs after several court decisions.
Significantly, the head of the SEC did not name what the case itself was about. In 2023, the regulator suffered two serious damages in court proceedings against crypto companies.
The first is a decision on behalf of the Ripple Labs company about the fact that the separate sales of XRP do not violate the law on valuable papers.
Another is the victory of Grayscale Investments, which managed to reconsider its application for converting the GBTC trust from a spot bitcoin ETF.

KuCoin will pay $22 million to settle a lawsuit from New York prosecutors

Bitcoin exchange KuCoin has reached a settlement with the New York State Attorney General's Office that will pay more than $22 million.
In March, OAG chief Letitia James charged the platform with violating securities laws by offering unlicensed digital assets.
According to the statement, KuCoin operated without registration as a broker-dealer and falsely represented itself as an exchange.

Donald Trump has released a series of NFTs with his prison photo

Donald Trump MugShot NFT

Former US President Donald Trump presented the third series of a personal NFT collection called MugShot with a photo of himself from prison.
Special fans of the politician are encouraged to buy 47 or more NFTs in one transaction to receive a physical copy of the mugshot with a piece of the suit he was wearing on the day of his arrest. They will also be invited to dinner with the ex-president at the Mar-a-Lago hotel.

Retired couple invested all their savings in Bitcoin and Ethereum

Retired couple invested all savings in crypto

An elderly husband and wife from the UK claim that their entire investment portfolio consists of only Bitcoin and Ethereum (ETH).
In total, they hold £900,000 worth of Bitcoin and £194,000 worth of Ethereum in the cold wallet, as well as £150,000 in cash.
Pensioners turned to the British publication for recommendations given by expert Victoria Scholar. She responded by saying that their portfolio "would give most financial advisors a heart attack."
She pointed out that the pair's funds are not diversified and are subject to high volatility. In her opinion, pensioners should sell digital assets, since the growth of the crypto market this year has allowed them to take profits.
Scholar recommended investing 40% of the money received in various stocks and another 40% in bonds and think about buying real estate.

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