Daily Report | The Federal Reserve announces a 25 basis point rate cut; Powell: The Federal Reserve is not allowed to hold Bitcoin and has no intention of seeking a change in the law; Zhao Changpeng meets with the King of Bhutan and introduces Bitcoin to him
December 19 News OverviewOrganizer: Luan Peng, ChainCatcher
Important News:
- Powell: We are currently at or near a moment to slow down interest rate cuts
- The Federal Reserve announces a 25 basis point rate cut
- Powell: The Federal Reserve is not allowed to hold Bitcoin and has no intention of seeking to change the law
- MicroStrategy seeks to establish "smart leverage" and may turn to fixed-income securities to fund Bitcoin purchases
- U.S. temporary spending bill includes "Deploying American Blockchains Act" to promote blockchain technology development
- Sun Yuchen's team allegedly pressured to delete CoinDesk's controversial report, and the media's editorial board chair has resigned
- Zhao Changpeng meets with the King of Bhutan and introduces Bitcoin to him
- Binance will support the token swap of Mines of Dalarnia (DAR) and rebrand to Dar Open Network (D)
"What important events happened in the past 24 hours"
Powell: We are currently at or near a moment to slow down interest rate cuts
Federal Reserve Chairman Powell: The wording added to the statement regarding "magnitude and timing" of rate adjustments indicates that we are at or near a moment to slow down interest rate cuts. The slowdown in rate cuts reflects the strong economic data this year. He believes that the policy still has substantial restrictive effects.
As long as the labor market and the economy remain robust, caution can be maintained when considering further rate cuts. He believes that inflation risks and uncertainties are high. (Jin Shi)
The Federal Reserve announces a 25 basis point rate cut
The Federal Reserve concluded its 2024 annual interest rate decision, deciding to lower the benchmark interest rate by 25 basis points to a range of 4.25%-4.50%, marking the third consecutive rate cut, in line with expectations.
In eight decisions this year, the Federal Reserve has cumulatively cut rates by 100 basis points, including one 50 basis point cut, two 25 basis point cuts, and five instances of maintaining rates. (Jin Shi)
According to Jin Shi, Federal Reserve Chairman Powell stated that the Federal Reserve has no intention of holding Bitcoin. Powell said at the press conference following the FOMC meeting: "We are not allowed to hold Bitcoin. 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 stated that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy plan to a more focused approach on fixed-income securities to raise funds for cryptocurrency purchases.
When asked how he expects to fund future cryptocurrency purchases, Saylor expressed this preference in an interview. So far, MicroStrategy has used a combination of new stock and convertible bond sales to fund purchases, which have already provided returns to shareholders as its stock has risen to a price that can be converted into shares.
Saylor stated: "We have $7.2 billion in convertible bonds, but $4 billion of that is essentially equity, trading through exercise prices and call prices, with a delta of about 100%, looking like equity. We want to go back and establish smarter leverage to benefit our common stock shareholders."
He mentioned that the company uses regulated exchanges like Coinbase to purchase Bitcoin. MicroStrategy's stock price has risen about 500% this year, far exceeding Bitcoin's approximately 150% increase.
Hedge funds have been looking for its fixed-income securities to implement convertible arbitrage strategies, buying bonds and shorting stocks, essentially betting on the volatility of the underlying stocks. This demand has driven MicroStrategy to issue $6.2 billion in convertible bonds this year.
According to Decrypt, U.S. congressional leaders unveiled a temporary spending bill on Tuesday aimed at avoiding a government shutdown, which includes crypto-related initiatives.
The bill will extend government funding until March 14, 2025, currently including the "Deploying American Blockchains Act." This act will enable the U.S. Department of Commerce to propose policy recommendations and establish a government-supported group of industry experts on Capitol Hill.
The bill requires the Department of Commerce to support the U.S. leadership in blockchain technology and to establish a new "National Blockchain Deployment Advisory Committee" to assess the application of blockchain technology and tokenization in federal agencies, promoting the U.S. leading position in global blockchain technology competitiveness.
According to Fortune, Sun Yuchen's team pressured its new owner Bullish to delete articles related to a CoinDesk report that detailed Sun Yuchen's purchase of a $6.2 million banana artwork and its consumption, while also mentioning his legal disputes with the U.S. Securities and Exchange Commission and controversies surrounding the Tron blockchain. After the article was deleted, the CoinDesk editorial team expressed concerns about independence.
Bullish acquired CoinDesk for $75 million last year and promised it would operate as an independent subsidiary. However, this incident has heightened tensions between the media and its owner. CoinDesk editorial board chair Matt Murray has resigned, and Bullish has not commented on the incident.
Zhao Changpeng meets with the King of Bhutan and introduces Bitcoin to him
Binance co-founder Zhao Changpeng posted a photo of his meeting with the King of Bhutan on X platform, captioning it: "Inspiring conversation."
Additionally, in response to a comment asking, "Did you introduce Bitcoin to them?" Zhao Changpeng replied, "Of course."
Binance will support the token swap of Mines of Dalarnia (DAR) and rebrand to Dar Open Network (D)
Binance will support the token swap of Mines of Dalarnia (DAR) and the rebranding to Dar Open Network (D).
Binance will stop trading and delist all existing DAR spot trading pairs (DAR/USDT and DAR/TRY) on January 6, 2025, at 11:00 (UTC+8), and will automatically remove all open orders. Binance will open D/USDT and D/TRY spot trading on January 9, 2025, at 16:00 (UTC+8).
According to the latest research from NFT Evening, after Bitcoin broke $100,000, it has created 14,211 new millionaires and four new billionaires. The report shows that Bitcoin investors become millionaires at a rate 22 times faster than stock investors.
The research also compared the returns of a $4,000 investment in Bitcoin in 2010 with blue-chip stocks. More than a decade later, Bitcoin investors' assets appreciated to $1 million, while blue-chip stock investors' assets only grew to $45,000. A Bitcoin investor who invested $30,500 at the beginning of 2011 became a billionaire after about 12.7 years, with a return rate of 32,787 times. In contrast, blue-chip stock investors' assets grew only to $950,000 during the same period, far less than the returns of Bitcoin investors.
The research also found that Bitcoin's returns far exceed those of America's top stocks. Between 2010 and 2020, Bitcoin's growth was 76,378 times that of Apple during the same period, and compared to Microsoft, Amazon, and Tesla, Bitcoin's return rates were 148,978 times, 66,330 times, and 9,103 times, respectively.
Binance.US plans to restore its dollar services in early 2025
According to Decrypt, Binance.US plans to restore dollar services in early 2025, after the exchange suspended fiat trading last year due to regulatory pressure.
Interim CEO Norman Reed stated in a statement: "While I cannot yet confirm a launch date, I want to make it clear that this is not a question of whether, but when."
Binance survey: The number of Memecoins holders exceeds that of Bitcoin
According to a user survey conducted by cryptocurrency exchange Binance, the number of Memecoins holders exceeds that of Bitcoin.
The survey showed that 16% of respondents reported holding meme coins, making it the most held cryptocurrency among respondents. Bitcoin (BTC) ranked second, with 14.44% of participants stating they had Bitcoin in their wallets. The survey covered over 27,000 users from Asia, Australia, Europe, Africa, and Latin America.
UBS: Economic data will continue to dominate the Federal Reserve's future rate decisions
UBS stated that the Federal Reserve's next rate moves will be guided by economic data. Although major global markets reacted negatively to changes in the Federal Reserve's interest rate cut cycle next year, the Federal Reserve will continue to monitor economic conditions and various data before taking any action.
UBS stated: "We believe the Federal Reserve still relies on data, and future economic indicators will continue to play a crucial role in determining the Federal Reserve's next actions." Key indicators such as the Fed's preferred inflation measure, PCE inflation, will play a critical role in shaping central bank policy, with data set to be released this Friday. However, UBS expects inflation to slow in the coming months, which may affect the Federal Reserve's policy outlook. Additionally, employment data will remain an important factor as the Federal Reserve assesses the strength of the labor market and the resilience of the overall economy. (Jin Shi)
Lawyer claims Yoon Suk-yeol does not agree with the charge of insurrection
According to CCTV International News, legal advisor to impeached South Korean President Yoon Suk-yeol, Seok Dong-hyun, stated to the media that if there is a need for him to clarify anything during the Constitutional Court's review of Yoon Suk-yeol's impeachment case, Yoon Suk-yeol is willing to explain himself. Seok Dong-hyun stated that Yoon Suk-yeol has never considered instigating an insurrection, so he cannot agree with the charge of "insurrection."
CryptoQuant CEO Ki Young Ju posted on social media: "The Korean won and other domestic assets are completely unattractive. The government does not realize this and is just forcibly maintaining prices, which has led to a surge in exchange rates. The USDT traded on Upbit has reached an IMF crisis-level exchange rate.
I personally believe that there is a massive outflow of national wealth happening. Many wealthy people I know are leaving Korea. The outflow of national wealth is just a reflection of the country's cognitive ability report card, isn't it?" He further pointed out: "The government should not forcibly retain capital fleeing overseas but should think about how to encourage capital to return voluntarily.
We need to nurture industries, provide incentives for investors, and open up business opportunities. I hope to stop these unnecessary regulations. Due to my limited understanding of domestic politics, I do not know who can make such changes. As a Korean company, I have persisted for seven years, but now I am also considering whether I should leave Korea. It is really 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 the exciting articles worth reading in the past 24 hours"
Chris Dixon's latest view: In 2025, blockchain will further "decentralize" the AI-driven internet
In 2025, blockchain alternatives will provide more choices, open-source innovations, and community control options. They will carry the "torch" of an open internet. Cryptocurrencies will begin to take power away from large tech companies and return it to users.
The altcoin market will welcome a sustained altcoin season.
The crypto landscape of the Trump administration
The day of Trump's official inauguration is approaching. He has also nominated cabinet members for his new administration that he favors. It is undeniable that Trump, along with some of his nominated cabinet members, are crypto-friendly individuals.
Thanks to the crypto-friendly stance of the Trump administration, combined with the U.S. rate cuts, the crypto industry has officially entered a bull market.
For example, as projects closely tied to the Trump family, such as WLIF, continue to buy tokens like AAVE, LINK, and ENA, these tokens have seen significant increases.
The upcoming market trend has also become quite clear, as the U.S. regulatory framework for crypto becomes increasingly defined, DeFi-related projects will become one of the main lines of the upcoming bull market. The Trump family's continuous bets on DeFi projects are also a manifestation of this trend.
On the policy front, the "21st Century Financial Innovation and Technology Act" is likely to pass. Once the bill is passed, it will clearly define when cryptocurrencies are commodities or securities. If the bill specifies that related tokens are deemed decentralized and functional, they will be considered digital commodities and not subject to SEC regulation, and those meeting centralization requirements may receive a grace period, which will encourage DeFi projects to evolve towards greater decentralization. Furthermore, the bill requires the SEC and CFTC to study the development of DeFi and assess its impact on traditional financial markets and potential regulatory strategies, which will attract more DeFi projects to "return" to the U.S., promoting the prosperity and development of the DeFi market.
It is precisely based on this regulatory change in the U.S. that DeFi has become an important narrative in this bull market.
And Trump, along with his related projects and cabinet members, are buying which projects and supporting which projects? This indicates what direction the future development of crypto will take.
Meme Popularity Rankings
According to meme token tracking and analysis platform GMGN, as of December 19, 19:30:
In the past 24 hours, the top five popular Ethereum tokens are: PEPU, PATRIOT, LINK, PEPE, AGZRO
In the past 24 hours, the top five popular Solana tokens are: ERROR, GOBLIN, NOJEETS, UFD, PENGU
In the past 24 hours, the top five popular Base tokens are: VIRTUAL, PEPE, BRETT, MIGGLES, CATOF
