Weekly Crypto Digest for September 16-22, 2024
Sunday, September 22, 2024
In the latest issue of Weekly Crypto Digest, read about how the Fed cut the rate, the SEC lawsuit against Consensys was dismissed, more BTC for MicroStrategy and BingX hack details.
The Fed cut the rate by -0.5%. Key statements by Jerome Powell
On September 18, 2024, during the regular meeting of the Federal Open Market Committee of the US Federal Reserve (FOMC), a decision was made to cut the interest rate by 50 basis points (0.5%).
According to the Chairman of the US Federal Reserve, the interest rate cut is evidence that stability in the labor market can be maintained. According to him, the mentioned sector has cooled down and is no longer so "tense".
Touching on the topic of inflation, Powell noted that it continues to decline, but the United States is still far from the desired indicators. At the same time, for its further reduction, the head of the Fed believes there is no need to "cool" the labor market.
He also emphasized that the decision to cut the rate does not mean a victory over inflation. The Fed still wants to see an indicator close to 2%, and intends to keep it in this state for some time.
Powell said that cutting the interest rate by 50 points is the right decision. There is nothing in the Federal Reserve's forecasts that indicates a rush or lag behind the market, the head of the department is sure. The Fed will make subsequent decisions regarding the interest rate based on new data and changes in the US economy.
Separately, the Fed Chairman emphasized that the US economy and labor market are in a "strong condition." At the same time, according to the head of the Fed, the department will not return to a neutral interest rate in the foreseeable future, and the current decision is not evidence of a new pace of decline.
It should also be noted that against the backdrop of the rate cut, Bitcoin rate rose above $62,000.
The court dismissed Consensys' lawsuit against the SEC
A Texas court dismissed Consensys' lawsuit against the US Securities and Exchange Commission (SEC). This was announced by company representatives.
The developer of the MetaMask crypto wallet filed a lawsuit against the agency in April 2024. According to Consensys lawyers, the purpose of this lawsuit was to protect the Ethereum ecosystem from excessive regulation by the SEC. The company is confident that the crypto sphere was subjected to unreasonable pressure from the Commission.
Consensys representatives demanded confirmation that Ethereum is not a security and that the applications that make transactions are not brokers. The company also asked the court to recognize the SEC's actions as undermining the future of the United States as a technology leader.
The project team noted that the lawsuit was dismissed, citing procedural grounds. However, the developer's claims were not considered on the merits.
During the hearing of the case, Judge Reed O'Connor emphasized that the "Wells notice" received by Consensys was not a final action. He also noted that it does not indicate a specific decision regarding the company.
MicroStrategy bought 7,420 BTC
MicroStrategy has increased its bitcoin portfolio by 7,420 BTC, according to its founder, Michael Saylor. The investment cost $458.2 million.
According to Saylor, the crypto assets were purchased at a price of $61,750, which is below the market price. Saylor pointed out that the company's bitcoin portfolio yield for the quarter is 5.1%, for the year - 17.8%. This is higher than the values that the company's co-founder cited during the previous purchase of crypto assets.
As of September 19, 2024, the company controls 252,220 BTC worth about $9.9 billion. The average purchase price is $39,266.
At the current rate, MicroStrategy's unrealized profit has reached $5.9 billion.
BingX crypto exchange was hacked
The BingX cryptocurrency exchange has been hacked. According to PeckShield experts, the platform has lost more than $43.2 million.
Initially, analysts recorded a suspicious transaction of $13.6 million to this address. Later, PeckShield revised its estimate of potential damage, increasing it to $43.2 million.
Exchange Product Director Vivienne Lin confirmed the hack but said that the losses were small.
According to her data, the platform's hot wallet was also attacked. The withdrawal of funds from the platform was frozen during the investigation.
Louisiana State Starts Accepting Payment for Government Services in Cryptocurrency
The state of Louisiana, USA, has officially accepted the first payment for government services using digital assets. For this, the client used Lightning Bitcoin (LBTC), local authorities said.
The payment was accepted by the Louisiana Department of Wildlife and Fisheries. According to state representatives, residents and visitors to the region will be able to pay for a variety of government services using crypto assets.
The state accepts payments in Bitcoin (BTC), Lightning Bitcoin (LBTC), and USD Coin (USDC). Bead Pay converts incoming cryptocurrency payments, crediting US dollar amounts to the accounts of the Louisiana government.
The regional authorities, in turn, believe that this payment mechanism has a number of advantages:
- a decrease in the number of fraudulent transactions;
- no need for state representatives to deal with crypto assets directly;
- receipt of payments in US dollars by the Louisiana authorities;
- leveling out the volatility inherent in the cryptocurrency market;
- the ability to use any crypto wallet.
The state leadership emphasized that they intend to develop this area further. The press release says that local authorities will continue to improve the level of services provided to the population.
SEC Approves BlackRock's Application to Trade Spot Bitcoin ETF Options
The US Securities and Exchange Commission (SEC) has approved a joint application by BlackRock and the Nasdaq exchange to launch trading in stock options for spot bitcoin ETFs.
According to the document, the agency has authorized the trading and listing of this product for the iShares Bitcoin Trust under the ticker IBIT.
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