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Prices → Up

News → Bullish

Evidence that politicians tried to sabotage crypto → Plentiful

It was a good week for the coins - let’s enjoy the renewed bullishness my friends.

P.S. Stay tuned for our upcoming interview with Mode Network Founder James Ross! Lots’s of alpha in this one!

News Stories

Markets & Macro

• Fed’s 50bps Reduction Triggers $321M in Digital Asset Inflows, Coinshares Reports [Bitcoin.com] Coinshares reported $321 million in digital asset inflows, driven largely by the Federal Reserve's 50 basis point rate cut. Bitcoin led the inflows with $284 million, reflecting growing investor interest, while short-bitcoin products also saw increased activity. Despite the positive trend, Ethereum experienced outflows for the fifth consecutive week, losing $29 million. The U.S. contributed the most to the inflows, while countries like Germany, Sweden, and Canada reported outflows.

• Ethereum outperforms bitcoin after Fed rate cut, signaling bullish market sentiment [The Block] Ethereum has outpaced Bitcoin in gains since the U.S. Federal Reserve's recent 50 basis point rate cut, with Ether rising over 16% compared to Bitcoin's 6%. Positive funding rates for Ethereum indicate growing demand for leveraged long positions, suggesting bullish sentiment, though experts caution against potential market corrections due to volatility. Analysts from QCP Capital and Bitfinex Alpha note that altcoins, including Ether, are experiencing a recovery after months of suppressed valuations, but warn of possible market fluctuations as open interest in altcoins surpasses previous highs.
  

Institutions, Regulation, & Politics

• FTX fraudster Caroline Ellison sentenced to 2 years in prison, ordered to forfeit $11 billion [CNBC] Caroline Ellison, former CEO of Alameda Research and key witness in the prosecution of FTX founder Sam Bankman-Fried, has been sentenced to two years in prison and ordered to forfeit $11 billion for her role in the massive fraud that led to FTX's collapse. Despite her extensive cooperation with prosecutors, which was crucial in convicting Bankman-Fried, the judge imposed a prison sentence to deter similar future crimes. Ellison, who expressed deep remorse for her actions, had sought a no-prison sentence. She will remain free on bail until her surrender in November.

• US representative criticizes Gensler as most ‘destructive’ SEC chair during hearing [CoinTelegraph] US Congressman Tom Emmer denounces Gary Gensler over crypto regulation: "Your inconsistencies on this issue have sent this country back. We could not have had a more historically destructive or lawless Chairman of the SEC.”

• Kamala Harris says US should become 'dominant' in blockchain, reiterates 'digital assets' in economic plan [The Block] Vice President Kamala Harris has pledged to make the United States a leader in emerging technologies such as blockchain, AI, and quantum computing if elected president. Speaking at The Economic Club of Pittsburgh, Harris emphasized her commitment to fostering innovation in digital assets while ensuring consumer protection. This marks a notable shift as Harris had previously been quiet on cryptocurrency during her campaign. Her comments come as the crypto industry has largely been courted by Republican nominee Donald Trump, who has been openly supportive of Bitcoin and is launching a crypto project.

Crypto Products & Onchain Events

• PayPal enables business accounts to buy, sell, and trade crypto [CoinTelegraph] PayPal announced that U.S. merchants, excluding those in New York, can now buy, sell, and trade cryptocurrencies directly through their PayPal Business accounts. This new feature allows businesses to engage with digital currencies, including options to withdraw assets to external wallets. PayPal also highlighted the recent launch of its PYUSD stablecoin, which has grown to a $1 billion market cap, though it still trails behind leading stablecoins like Tether and USDC.

• Polymarket Reportedly Seeks $50M in Funding, Mulls Token as Election Bets Surge [CoinDesk] Polymarket, a crypto-based prediction market platform, is reportedly seeking $50 million in new funding as interest in U.S. election betting surges. According to The Information, the New York-based startup is also considering issuing its own token, which could be used by users to validate real-world event outcomes. The potential token issuance would involve offering warrants to investors, allowing them to purchase tokens if the plan proceeds. Polymarket, which uses smart contracts on the Polygon blockchain to settle bets in USDC, has seen significant growth, with monthly trading volume reaching an all-time high of $472 million in August. The platform has faced regulatory scrutiny, particularly regarding its geofencing of U.S. users, and continues to navigate challenges in the prediction market space.

• Celestia Foundation raises $100M [Celestia Blog] The Celestia Foundation has raised $100 million in a funding round led by Bain Capital Crypto, with contributions from Syncracy Capital, 1kx, Robot Ventures, Placeholder, and others, bringing its total funds raised to $155 million. Celestia's Mainnet Beta, launched in October 2023, introduced the first modular consensus and data network, allowing developers to deploy high-throughput applications across multiple virtual machines. The foundation aims to scale blockspace to 1 gigabyte blocks, enabling data throughput comparable to several Visa networks operating in parallel.

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