Are you curious about the latest in the crypto world? Here’s a rundown of today’s key trends and events affecting Bitcoin prices, blockchain technology, DeFi, NFTs, Web3, and crypto regulations.
US Federal Reserve cuts interest rates by 25 basis points
Following the U.S. Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday, Bitcoin’s price experienced a slight increase.
The Federal Open Market Committee (FOMC) met expectations from many economists and market analysts by reducing the benchmark federal funds rate to a new range of 4.50% to 4.75%. This recent adjustment follows a rate cut of 50 basis points in September.
In an official statement, the Committee explained, “To support its objectives, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4.50% to 4.75%. Recent indicators suggest that economic activity has continued to grow steadily. Inflation has progressed toward the Committee's 2% goal, although it remains somewhat elevated.”
Concerning potential future rate reductions, the Federal Reserve added, “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook.
Bitcoin Price at All-Time High as Fed Cuts Interest Rates by 25 Basis Points
In its first Federal Open Market Committee (FOMC) meeting since the November U.S. presidential election, the Federal Reserve cut interest rates by 25 basis points, aligning with market and expert expectations.
Bitcoin's price, highly sensitive to U.S. economic news, was already nearing record highs of just under $77,000 and remained relatively stable following the announcement.
This week has been significant for the U.S. economy, with the election of a new president on Tuesday marking a shift in the nation's direction for the coming four years.
On Thursday, the Federal Reserve held its first FOMC meeting since September, when it reduced interest rates by 0.5%. Most market analysts had anticipated a smaller cut of 25 basis points in the November meeting, which Fed Chair Jerome Powell confirmed today, lowering the rate range to 4.5%-4.75%.
The Federal Reserve’s decision was influenced by falling inflation rates, reaffirming its goal to reduce inflation to 2% in the coming months.
Pro-crypto Republicans win House seats as majority control still TBD
In the 2024 U.S. election, two Republican candidates for the House of Representatives have won against their Democratic opponents, helping the party maintain its majority in the chamber.
The Associated Press (AP) reported on November 7 that Republican Jeff Hurd was declared the winner in Colorado’s 3rd congressional district, securing 50.1% of the vote with 89% of votes counted. Meanwhile, Republican Scott Perry won re-election in Pennsylvania’s 10th congressional district, defeating Democrat Janelle Stelson.
During his time in office, Perry voted for the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill with bipartisan support in the House now awaiting a vote in the U.S. Senate. According to Hurd’s campaign platform, he aims to support similar legislation and advocates for “sensible regulations” to advance technologies like cryptocurrency.
Caroline Ellison begins serving two-year prison sentence in Connecticut for her role in the collapse of FTX
Caroline Ellison began serving her two-year prison sentence on Thursday for her involvement in the collapse of the cryptocurrency exchange FTX, which led to billions of dollars in losses for its customers.
The Federal Bureau of Prisons confirmed to The Block that Ellison is currently in custody at the Federal Correctional Institution Danbury, a low-security facility in Connecticut, which houses 1,252 inmates, according to its official website.
Ellison served as the co-CEO of Alameda Research, a company found to have closer connections to FTX than initially understood. She is also the former girlfriend of Sam Bankman-Fried, the founder of both FTX and Alameda Research.
In December 2022, Ellison pled guilty to multiple charges, including two counts of conspiracy to commit wire fraud, two counts of actual wire fraud, one count of conspiracy to commit commodities fraud, one count of conspiracy to commit securities fraud, and one count of conspiracy to commit money laundering.
Alameda Research's Former CEO Begins Prison Sentence for Role in FTX Collapse
Caroline Ellison, the former CEO of Alameda Research and a central figure in the FTX fraud case, began serving her two-year sentence at a low-security federal prison in Connecticut.
Ellison’s cooperation with prosecutors was key to the conviction of FTX founder Sam Bankman-Fried. However, she now faces the repercussions of her involvement in the fraudulent activities that led to the collapse of the once-successful cryptocurrency exchange.
The 30-year-old former CEO of Alameda Research, who played a pivotal role in orchestrating the massive fraud that brought down the $32 billion cryptocurrency exchange, reported to the federal facility in Connecticut on November 7, as reported by CNBC.
Her sentence stems from a 2022 plea agreement in which she confessed to conspiracy and financial fraud charges. Ellison’s cooperation with prosecutors was crucial in securing the conviction of Sam Bankman-Fried, for whom she testified, contributing to his 25-year prison sentence for similar offenses.
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