Author | Wu Says Blockchain
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1. The Federal Reserve announced its interest rate decision (upper limit) at 4.50% link
The Federal Reserve announced its interest rate decision (upper limit) at 4.50%, with expectations also at 4.50%, down from a previous value of 4.75%. According to the Federal Reserve's statement, recent data shows steady economic growth, a slight easing in the labor market, a rise in unemployment but still at a low level, and inflation close to the target but slightly increasing. The committee will continue to reduce its balance sheet, with the decision supported by a majority of members; Beth Harmack opposed, advocating for maintaining interest rates between 4.5%-4.75%. Powell stated at the press conference that we are not allowed to hold Bitcoin and do not wish to change the law. The dot plot shows a reduction in next year's rate cut forecast from 4 adjustments to 2; Powell mentioned that future considerations for rate adjustments could be more cautious, with the path depending on further progress in reducing inflation. It may take another year or two to reach the inflation target. Rate hikes next year are unlikely.
2. Trump: Will ensure Bitcoin and cryptocurrencies thrive in the U.S. link
Elected President Trump attended the Blockchain Association's annual policy summit dinner and delivered an important speech. Trump stated he would fully support the development of the blockchain industry in the U.S. and ensure that related businesses remain in the U.S. rather than move to other countries. He emphasized that this is an emerging concept and industry that is thriving. We will ensure that the U.S. maintains its global leadership in this field.
3. The Bitcoin Policy Institute drafted a presidential executive order for Trump regarding the inclusion of Bitcoin in the U.S. strategic reserve assets link
The Bitcoin Policy Institute has drafted a presidential executive order for the Trump administration regarding the inclusion of Bitcoin in the U.S. strategic reserve assets, suggesting the establishment of a Strategic Bitcoin Reserve (SBR) to be included in the Treasury's Exchange Stabilization Fund (ESF). The order advocates for viewing Bitcoin as 'digital gold' to enhance national economic security, consolidate the U.S. financial dominance, and promote the development of the digital asset industry. Additionally, the order calls for integrating the Bitcoin held by the government and initiating procurement and management plans within 60 days.
4. Arthur Hayes: The Trump team may bypass the Federal Reserve for 'money printing' link
BitMEX co-founder Arthur Hayes tweeted that Powell does not cooperate with Trump like he does with Biden. However, it doesn't matter, as Trump's nominated Treasury Secretary Scott Bessent will balance Powell like 'bad girl' Yellen. The Trump team may bypass the Federal Reserve's intervention to achieve 'money printing' operations through three main strategies: ending the conservatorship of Fannie Mae and Freddie Mac; promoting the economy by depreciating the dollar against gold; implementing leverage capital requirement (SLR) exemptions.
5. Cathie Wood: Trump's election may trigger a wave of private company mergers, Bitcoin's scarcity superior to gold link
ARK Invest CEO Cathie Wood stated in an interview that Trump's election will bring a wave of previously stalled private company acquisitions due to cumbersome regulatory processes. She pointed out that adjustments to the Federal Trade Commission (FTC) policies will unleash potential merger and acquisition demands, creating liquidity opportunities for venture capital. Additionally, Musk will play an important role in reducing government size. Meanwhile, Wood reiterated her prediction that Bitcoin will surpass $1 million by 2030, emphasizing that Bitcoin has a scarcity advantage over gold; when gold prices rise, mining companies increase production, accelerating supply growth, whereas Bitcoin does not experience this.
6. Expectations for cryptocurrency ETFs next year: BTC/ETH combination leads, LTC and HBAR may be the first to be approved link
Bloomberg ETF analyst James Seyffart wrote that the U.S. Securities and Exchange Commission (SEC) has delayed the approval of Solana and XRP ETFs, which will not be reconsidered until the new SEC leadership is in place, and related legal issues still need to be resolved. However, the approval outlook for Litecoin and HBAR ETFs is favorable, as Litecoin is viewed as a Bitcoin fork and has not been classified as a security by the SEC. Currently, Canary is the only issuer that has submitted applications for Litecoin and HBAR ETFs, but investor demand remains unclear. Additionally, Bloomberg ETF analyst Eric Balchunas stated that a wave of cryptocurrency ETFs is expected next year, with the BTC + ETH combination ETF likely to come first, followed by Litecoin, then HBAR, and finally XRP/Solana.
7. FTX announced that its court-approved Chapter 11 reorganization plan will take effect on January 3, 2025, and initiate the first distribution link
FTX and its affiliated debtors today announced that their court-approved Chapter 11 reorganization plan will take effect on January 3, 2025, with the first distribution expected within 60 days after the effective date. FTX also announced today that it has reached agreements with BitGo and Kraken to assist in distributing recovery funds to retail and institutional clients as well as other creditors in supported jurisdictions under this plan. Additionally, FTX filed a lawsuit against Gate on November 24, seeking to recover $40 million to return the cryptocurrency assets held by the exchange. On-chain transfers indicate that at least $35 million has been returned to wallets controlled by FTX.
8. Deutsche Bank is developing an Ethereum L2 blockchain based on ZKsync technology link
According to Bloomberg, Deutsche Bank is developing an Ethereum L2 blockchain based on ZKsync technology. The L2 solution being developed by the bank is called Project Dama 2, which will integrate directly with the Ethereum mainnet. The project design introduces a trusted validator mechanism and grants special supervisory powers to regulators to mitigate risks of interaction with sanctioned entities while ensuring a balance between blockchain transparency and financial compliance requirements. Deutsche Bank plans to launch a minimum viable product (MVP) in 2025 and is currently awaiting regulatory approval.
9. MicroStrategy (MSTR) has been included in the Nasdaq 100 Index link
MicroStrategy (MSTR) has been included in the Nasdaq 100 Index. MicroStrategy will become the 40th largest company in the Nasdaq 100 Index. Inclusion in this index will give MicroStrategy a place in one of the world's largest ETFs, Invesco's QQQ Trust (QQQ), which has over $300 billion in assets under management.
On December 16, MicroStrategy added approximately 15,350 BTC for about $1.5 billion, with an acquisition average price of $100,386. The BTC yield so far this quarter is 46.4%, and the year-to-date BTC yield is 72.4%. As of December 15, 2024, MicroStrategy holds 439,000 BTC, with an average acquisition price of $61,725 and a total cost of approximately $27.1 billion.
10. Binance's global user survey: The number of meme coin holders exceeds that of Bitcoin, with nearly half of users entering the crypto market in 2024 link
Binance released a global user survey report, surveying 27,230 respondents. In emerging sub-industries, 23.89% of respondents believe AI tokens will drive market growth, making them the digital asset category with the greatest upward potential. Memecoins ranked second, with 19.09% of respondents confident in their potential rise, followed by DeFi tokens (12.37%) and layer-1 tokens (12.28%). Regarding the most popular tokens among users, meme coins topped the list, with 16.1% of respondents currently holding memecoins. Bitcoin ranked second with a holding rate of 14.44%. The survey also indicated a surge of new users entering the cryptocurrency space, with nearly half (45%) of respondents joining the cryptocurrency market in 2024.
Key financing events
Aave, Lens, and Family developer Avara completed $31 million in financing link
AI Agent startup /dev/agents completed $56 million in seed round financing link
UK stablecoin infrastructure company BVNK announced it has secured $50 million in Series B financing link
Tokenized securities company Prometheum announced it has completed $20 million in financing link
Content tokenization platform Promeet completed $3.1 million in Pre-seed round financing link
Tokenization startup Plume completed $20 million in financing link
Decentralized AI data chain project Masa completed a new round of strategic financing, led by DCG link
Fraction AI completed $6 million in Pre-seed funding, focusing on decentralized data labeling link
Lightning Network liquidity staking protocol UTXO Stack completed Series A financing, which will airdrop incentives for CKB and RGB++ assets link
Decentralized AI model development platform FLock.io announced it has completed $3 million in financing link
BitDCA announced it has completed $2 million in seed round financing link
TON ecosystem L2 project DuckChain announced it has completed $5 million in financing link
VanEck's fund invested $2.5 million in the Solana-based DePIN project DAWN link
For more industry financing events, please refer to crypto-fundraising.info.
