**Market Analysis: Telegram CEO Arrest and Its Impact on Crypto Prices**

The recent arrest of Telegram CEO Pavel Durov led to a significant 23% drop in the price of Telegram's native token, TON, over a 12-day period from late August to early September. This event contributed to heightened price volatility in the crypto market.

Despite the initial volatility, market conditions have since stabilized. However, future news related to Telegram could continue to influence short-term price movements. Sharpe Ratio analysis suggests that prices have retreated from overvaluation levels, and the correlation between Bitcoin (BTC) and TON has reached 50%.

Additionally, the U.S. Federal Reserve's recent 50 basis point interest rate cut is expected to inject excess liquidity into the crypto market, potentially driving prices higher as we approach the year's final quarter. However, investors should remain cautious of potential risks associated with the upcoming U.S. election, which could exert downward pressure on prices.