Hope you had a great weekend, folks. In today’s Daily, Bitcoin and Ether are down amid reports of a second assassination attempt on Donald Trump, the Fed may now cut rates by 50 basis points, former Celsius CEO Alex Mashinsky is looking to avoid 115 years in prison, and more.
Let’s get started.
Bitcoin and Ether Prices Drop After Second Trump Assassination Attempt
Bitcoin is down 4% over the past 24 hours to trade below $58,000, while Ether is down around 5% to trade below $2,300.
- The price drop coincides with reports of a second assassination attempt on former President Donald Trump at his West Palm Beach golf club Sunday night.
- Trump briefly surpassed Kamala Harris on decentralized prediction platform Polymarket shortly after the failed attempt.
- However, Harris later regained the lead in the odds of winning the US presidential election, and the two are now tied at 49% each.
- “It’s hard to say that the price drop is directly related to the assassination attempt on (Donald) Trump, but it coincides with the sharp decline in the cryptocurrency market,” Presto Research analyst Min Jeong told The Block.
- “However, I think it’s more likely that cryptos are giving up the momentum that stocks didn’t experience on Friday and that there’s a general risk-off move ahead of the FOMC meeting,” Jeong added.
The Federal Reserve is now expected to cut interest rates by 50bp, which will give a boost to Bitcoin, says Bitwise analyst.
The U.S. Federal Reserve is widely expected to cut interest rates at its Federal Open Market Committee (FOMC) meeting on Wednesday for the first time since March 2020.
- According to the CME FedWatch tool, rate traders see a 65% chance of a 50 basis point cut compared to a 35% chance of a 25 basis point cut, indicating growing expectations for more aggressive monetary easing.
- According to Bitwise analyst André Dragosch, if the Fed decides to cut rates by 0.50 percentage points, risky asset markets like Bitcoin could react positively.
- Dragosh added that Bitcoin price gains could continue in the coming months as expectations of further rate cuts spurred by recession indicators.
- Meanwhile, Bernstein analysts expect DeFi yields to rise again on the back of a potential U.S. rate cut, saying they could surpass 5%, outperforming money market funds.
Former Celsius CEO Mashinsky Faces 115 Years in Prison, Called to Testify
Former Celsius CEO Alex Mashinsky is seeking testimony from six former employees, including top executives of the shuttered centralized cryptocurrency lender, which could lead to a possible 115-year prison sentence.
- Celsius filed for bankruptcy in 2022, and Mashinsky was arrested last year after prosecutors accused him of defrauding customers and misleading them about the company’s profitability.
- The SEC also accused Mashinsky of defrauding investors and manipulating the price of Celsius’ native token, CEL.
Mashinsky’s lawyers argued that he never intended to harm anyone, that he relied on the expertise of his team and that mistakes often occurred without his knowledge. - The former CEO’s weekly “Ask Mashinsky Anything” event was reportedly reviewed by his legal team, but his attorneys argued that changes were made without his knowledge, bolstering their argument that it was a case of good faith rather than fraud.
Residents of a Norwegian village have complained about noise from a Bitcoin mine, and now that the mine is closing, their energy bills are set to rise by 20%.
Residents of Stockmarknes, a town in northern Norway, have been trying to demolish a local Bitcoin mining facility for three years after complaints about the noise from its cooling fans.
- According to local media outlet NRK, the event was celebrated last week when the site managed by KryptoVault was shut down.
- Critics of Bitcoin mining often point out the energy consumption and noise pollution the industry generates.
- But supporters argue that Bitcoin mining acts as a variable load, absorbing excess energy and helping stabilize the power grid, reducing waste while also lowering costs for other users.
- Stockmarknes residents may not have expected it, but their energy bills are set to rise by more than 20 per cent as local power company Noranet tries to recoup lost revenue from the power plant closure.
Delta Prime suffers $6 million in exploit after administrators lose control of private keys
DeFi protocol Delta Prime lost $6 million worth of crypto assets after hackers compromised the admin’s private keys.
- Delta Prime has acknowledged that its distribution on Arbitrum was affected, but said its Avalanche version was unaffected.
- “The risk has been contained, we are working to recover assets and the insurance pool will cover any potential losses where possible/necessary,” the team said.
within the next 24 hours
- The economic calendar is quiet.
- Federal Reserve Board member Rory Logan speaks Tuesday at 10 a.m. ET.
Don’t miss a beat with The Block’s daily roundup of the most impactful events happening across the digital asset ecosystem.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.