CoinEfficiency

Bitcoin Tests $20k Support Amid Fed Rate Hike and Crypto Market Developments

Bitcoin faces critical support levels as the Federal Reserve hikes interest rates by 75 basis points. Meanwhile, the Lightning Network deploys an emergency hotfix, Robinhood's crypto revenue dips, Binance considers buying banks, and Alameda Research's assets raise concerns.
Published on 2022-11-03

Bitcoin Tests $20k Support Amid Fed Rate Hike

The Federal Reserve announced a 75-basis-point interest rate hike, raising the federal funds rate to 3.75%-4%. This decision caused Bitcoin's price to drop 2.1%, hitting a low of $20,087 before partially recovering. Bitcoin currently trades at $20,160, nearing a critical $20k support level. The broader stock market also suffered, with the S&P 500, Nasdaq, and Dow Jones declining 2.5%, 3.39%, and 1.55%, respectively.

Lightning Network Deploys Emergency Hotfix

The Bitcoin Lightning Network addressed a critical bug that disrupted transactions by preventing LND nodes from syncing. The vulnerability, discovered after the v0.15.3 update, was exploited by a non-standard Bitcoin transaction. Developers resolved the issue within three hours, preventing major network disruption.

Robinhood’s Crypto Revenue Fell 12% in Q3

Robinhood reported a 12% decline in crypto transaction revenue for Q3, dropping from $58 million to $51 million. This decline was attributed to a 12% decrease in Monthly Active Users and a 24% drop in notional volume. Despite the downturn, Robinhood remains committed to expanding its crypto offerings, including support for more cryptocurrencies and NFT features.

Binance Will Buy Banks to Bridge Crypto and TradFi

Binance founder Changpeng Zhao revealed plans to acquire banks or make minority investments to bridge the gap between crypto and traditional finance. The company may spend up to $1 billion on acquisitions, targeting licensed financial institutions to expand its reach and user base.

Alameda Research’s Assets Reportedly “Entirely Illiquid”

A private financial document revealed that 98% of Alameda Research’s $14.6 billion assets are illiquid tokens, including $3.66 billion in unlocked FTT and $2.16 billion in FTT collateral. The firm’s heavy reliance on FTX tokens and significant liabilities raise concerns about its financial stability and potential broader market implications.

These developments highlight the interconnected challenges and opportunities shaping the cryptocurrency and traditional finance landscapes.

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