🔔 MARKET MOVING NEWS! (19/12/24)
1️⃣ Bitcoin Drops Below $100,000 After Fed Chair Powell’s Comment Against BTC Reserve ▶️
The price of BTC experienced some volatility yesterday, with a short rally and subsequent dip following developments from the U.S. Federal Reserve. Specifically, the price of BTC initially ticked higher immediately after the U.S. Federal Reserve announced a 25-basis point rate cut to its benchmark policy rate on Wednesday. However, the press conference, which was held immediately after the rate cut, saw the price briefly dip below the $100,000 mark. Notably, U.S. Federal Reserve Chair Jerome Powell signalled there could be fewer rate cuts than initially planned in 2025. He also commented against forming a national BTC reserve. Powell stated that the central bank is not allowed to hold bitcoin and is "not looking for a law change," in response to a question on his view on the U.S. government bitcoin reserve.
Source
2️⃣ Deutsche Bank Builds L2 Blockchain On Ethereum ❓
According to a Bloomberg report, German Bank Deutsche Bank AG is developing its own Ethereum layer-2 blockchain as part of Project Dama 2, an asset-servicing pilot. Dama 2, which is part of the Monetary Authority of Singapore’s Project Guardian, is a collaboration with crypto firms Memento Blockchain Pte. and Interop Labs. It has been built using ZKsync technology to address compliance challenges associated with using public blockchains in regulated finance. The bank reportedly hopes to launch it as a minimum viable product next year, pending approval from regulators.
3️⃣ Avara Founder Backs Proposal to Offboard Polygon Markets from Aave 🔍
Stani Kulechov, the founder and CEO of Avara (the parent entity for the suite of Aave companies), has reportedly backed a proposal to drop support for Polygon markets from the Aave platform. Kulechov’s backing follows controversy surrounding an early-stage Polygon Improvement Proposal (PIP) from Allez Labs and Morpho to use stablecoins in Polygon’s proof-of-stake Portal bridge to generate yield. Kulechov claimed that the suggested PIP posed an unacceptable safety risk to Aave due to the possibility of bridge exploits. He highlighted the effects of the $100-million Harmony Horizon bridge hack in June 2022 as an example of the dangers posed by bridge exploits.
4️⃣ Coinbase Can Delist Wrapped Bitcoin Amid BiT Global Challenge, Judge Rules ‼️
A federal judge has reportedly ruled in favour of Coinbase in the exchange’s legal fight with Justin Sun’s BiT Global Digital Limited. For context, BiT Global Digital Limited sued Coinbase for over $1 billion alleging that Coinbase’s decision to delist Wrapped Bitcoin (wBTC) was aimed at promoting its own competing product, cbBTC. In the current instance, the judge denied BiT Global’s request for a temporary restraining order, noting that the Hong Kong-based firm failed to show an imminent and irreparable harm that would come from Coinbase’s plans to soon delist wBTC.
The judge told BiT Global’s attorney,
Ultimately, I have no evidence from you about what is to come. I will not stop Coinbase from delisting WBTC.”
5️⃣ Kraken Unveils Ethereum Scaling Layer Ink Months Ahead Of Schedule ☄️
Crypto exchange Kraken has announced the mainnet launch of its Layer 2 blockchain ‘Ink.’ The company stated that the move comes “months ahead of schedule.” For context, the mainnet release had initially been targeted for early 2025. Ink is built using Optimism’s Superchain technology stack. This means it will be interoperable with other networks built using the OP Stack. Launch partners include projects like Curve, Frax, Gelato, and interoperability protocol LayerZero among others.
The company stated,
Ink is also progressing toward Stage 1 decentralization with permissionless fault proofs to enhance accountability in January, 2025. This will enable anyone to contest potentially invalid transactions and makes Ink more accountable to its community of users.
