Crypto Today (5th Feb): FOMC forecasts 3 interest rate cuts

1. EL SALVADOR PRESIDENT NAYIB BUKELE WAS RE-ELECTED WITH THE STRATEGY OF BITCOIN

President Nayib Bukele of El Salvador proclaimed victory in the presidential elections shortly after the polls closed on Sunday, even before the official results were announced by the electoral body.
Bukele asserted, "Based on our calculations, we have secured the presidential election with over 85% of the votes and a minimum of 58 out of 60 seats in the Assembly," referencing the 60-seat legislative assembly.

El Salvador President Nayib Bukele was re-elected | Source: Reuters

2. FOMC POWELL FORECASTS 3 INTEREST RATE CUTS THIS YEAR

Federal Reserve Chair Jerome Powell emphasized the need for prudence in deciding when to cut the benchmark interest rate, citing a strong economy that provides time for building confidence in falling inflation. In an interview on "60 Minutes," Powell stated that it's crucial to wait for data confirming a sustainable decline in inflation to 2%.
Despite a robust job report and sustained recovery, Powell cautioned against premature or delayed rate cuts, balancing the risks to price stability and employment mandates. He expressed optimism about the economy but stressed the importance of gaining more confidence in achieving the 2% inflation goal. Powell mentioned potential economic trouble spots and external shocks but asserted that the timing of rate cuts depends on data, suggesting that the March meeting might be too soon. He also addressed previous projections of three rate cuts this year, stating that nothing significant has occurred to warrant a drastic change in forecasts.

Federal Reserve Chair Jerome Powell | Source: CNBC

3. BITCOIN ETFS FROM FIDELITY AND BLACKROCK REACHED TOP 10 IN JANUARY FLOWS

In January, iShares Bitcoin Trust of BlackRock and Fidelity Wise Origin ranked eighth and tenth, respectively, in terms of greatest flows.
BlackRock and Fidelity's Bitcoin spot ETFs received approximately $4.8 billion in January flows, ranking among the top ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) saw an estimated $2.6 billion in net flows, achieving eighth place. The Fidelity Wise Origin Bitcoin ETF (FBTC) earned a tenth place with $2.2 billion in net flows, according to a Feb. 3

4. AFTER FTX, GENESIS NOW SEEKS COURT PERMISSION TO SELL $1.4 BILLION WORTH OF GBTC SHARES

Genesis Global Capital, the bankrupt cryptocurrency lending company, has filed a petition with the United States Bankruptcy Court in the Southern District of New York. The company is seeking approval to sell approximately $1.6 billion in entrusted assets.
The assets include shares of Grayscale Bitcoin Trust (GBTC) valued at around $1.4 billion. Additionally, the portfolio comprises shares of Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust, valued at approximately $165 million and $38 million, respectively.
In an effort to expedite the process, Genesis has submitted a separate request to shorten the timeline. This move aims to ensure that the selling request will be reviewed at the upcoming bankruptcy court hearing on Thursday, February 8.
Earlier this week, Genesis agreed to pay a $21 million fine to the U.S. Securities and Exchange Commission (SEC).

5. TOKEN UNLOCKS

Several tokens are set to unlock in the coming days, with significant amounts being released into circulation.

• HFT will unlock $4 million worth of tokens, constituting approximately 4% of the circulating supply, on 7th February.
• GMT is scheduled to unlock $21.3 million, accounting for around 5.3% of the circulating supply, on 9th February.
• On 11th February, APT will unlock a substantial $216 million in tokens, representing about 7.3% of the circulating supply.

These unlocking events can have notable implications for the respective token markets, potentially influencing trading dynamics and overall market sentiment. Investors and stakeholders are advised to stay informed and monitor these developments closely.

6. FRAX LAYER 2 LAUNCHES ON 7TH FEB

Frax layer 2 | Source: The Block

Frax Finance CEO Sam Kazemian anticipates a strong debut for Fraxtal, the layer 2 blockchain of the decentralized finance (DeFi) protocol. Scheduled for release in the first week of February, Kazemian envisions attracting several hundred million dollars worth of crypto assets within the initial month.
Fraxtal, utilizing rollups technology, aims to address Ethereum network congestion by improving transaction speed. The layer 2's launch is expected to be one of the most significant rollup releases of the year, with Curve proposing to deploy its exchange functionalities on Fraxtal.
Kazemian projects a total value locked of at least nine figures in the first month, aiming for $1 billion plus in Q1 and potential top 5 chain status.

7. SHRAPNEL (SHRAP) SHOOTING GAME STARTS EARLY ACCESS ON 8TH FEB

Shrapnel (SHRAP) | Source: Epic Games

Shrapnel, the highly anticipated NFT-based FPS game on the Avalanche blockchain, has released its early access version, STX1, on the Epic Games Store. Access is limited to those who purchased Extraction Pack keys, with play sessions offering $100,000 in SHRAP token prizes.
Approximately 3,000 players have acquired access keys ranging from $20 to $100. Despite a legal dispute, Neon, Shrapnel's creator, closed a successful $20 million Series A funding round. The full free-to-play version is set for a 2025 launch, while the early access aims to engage players, gathering feedback to shape the game's development.
Players can also earn rewards from a community pool, emphasizing their active role in steering the game's evolution.
As we conclude this exploration of pivotal events in the financial and crypto realms, the dynamic nature of these landscapes is evident. To stay informed and up-to-date on the latest developments shaping the future of finance, we invite you to follow Klarda for continuous updates. The world of crypto and finance is ever-evolving, and by staying connected with Klarda, you ensure that you don't miss out on crucial insights and opportunities. Embrace the dynamic journey ahead and join us for more in-depth analyses and updates. Follow Klarda to stay ahead in the rapidly changing world of finance.