Crypto Compass by BitcoinWalletSG #89

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This week, the crypto world saw significant developments with the U.S. Federal Reserve cutting interest rates by 50 basis points and Vice President Kamala Harris making her first public remarks on cryptocurrency. The Fed’s rate cut has already fueled market volatility, with analysts predicting both short-term price swings and long-term opportunities for Bitcoin and other digital assets. Meanwhile, Harris’ support for innovation in digital assets signals a potential shift in the regulatory environment, offering hope for a more crypto-friendly stance from her administration if elected. These two events could have far-reaching implications, influencing both market dynamics and the future regulatory landscape for crypto.

Bitcoin Spikes After Fed Cuts Interest Rates by 50 Basis Points

Bitcoin's price surged following the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points, lowering the federal funds rate to a range of 4.75% to 5.00%. The Federal Open Market Committee (FOMC) highlighted progress on inflation but noted that it remains somewhat elevated. The rate cut, which was widely anticipated by economists and traders, has sparked short-term market volatility. Analysts predict increased volatility in the coming days as traders readjust their positions, but they maintain a positive long-term outlook for Bitcoin, advising investors to focus on strategies that take advantage of potential parabolic price increases.

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Kamala Harris Signals Support for Crypto Innovation

In a recent speech to donors in New York City, Vice President and Democratic nominee Kamala Harris expressed her support for digital assets and innovative technologies like AI. Harris pledged to create a business-friendly environment with clear regulations to protect consumers and investors. Her remarks were welcomed by Uniswap Labs CEO Hayden Adams, who suggested her administration might be more pro-innovation compared to Biden’s. Meanwhile, Republican nominee Donald Trump continues to engage with the crypto space, promoting a DeFi project called World Liberty Financial and making headlines by purchasing burgers with Bitcoin in New York. As the 2024 presidential race heats up, the crypto industry is keeping a close watch on both candidates’ stances.

ETH Leads Gains as Crypto Conferences Wrap Up

The week began quietly for the crypto market, with ETH outperforming BTC in daily gains as the Token 2049 and Solana Breakpoint conferences concluded in Singapore. ETH is up 2.6%, trading above $2,600, while BTC rose 1.2% to $63,700. Solana’s memecoin MOTHER, backed by music star Iggy Azalea, saw a 4% gain, fueled by the announcement of a companion casino project, Motherland. Market movements remain light following last week’s 50 bps rate cut, with traders anticipating further cuts. Meanwhile, Pendle, a portfolio project of Arthur Hayes' Maelstrom fund, fell 6.5% after news of reduced fund positions spooked investors.

Happenings of the week

• ZachXBT busts $243M social engineering heist

• Stablecoin circulating supply back at all-time high of $180B

• Terraform Labs gets approval to begin wind down process

• BNY Melon gets SEC approval to custody Bitcoin for institutions

OpenSea Faces Class-Action Lawsuit Alleging NFTs Sold as Unregistered Securities

The Moskowitz Law Firm has filed a class-action lawsuit against OpenSea, claiming that the NFT marketplace sold NFTs as unregistered securities. The lawsuit, filed in Florida, alleges that two residents sustained damages from purchasing NFTs on the platform during the 2021-2022 market boom. This lawsuit follows a Wells notice issued to OpenSea by the SEC, indicating potential regulatory action against the platform. OpenSea CEO Devin Finzer has expressed concern over the implications for artists and creators in the evolving regulatory landscape.

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