Crypto and the Fed get along

Good morning! Welcome to The Daily Moon. Canada’s going the US way. Manitoba province will shut off power for new crypto miners soon. This blockade will continue for another 18 months until the grids stabilise. So far, PoW miners flocked to the region to access cheap electricity. That’ll soon be history.

The markets rallied. Bitcoin moved to $17,100 levels and Ethereum was close to $1,300. Nasdaq fell in early trade. Back home, Sensex and Nifty ended slightly higher.

Fed Calms Crypto

The US Fed’s booster shot nudged a bull rally in the crypto market. The Fed announced it will hike interest rates in smaller bursts. Excited, Bitcoin and Ethereum finally shrugged off their FTX blues.

No more rate hikes?Well, not exactly. But the Fed won’t be very aggressive. It increased rates by 0.75% in November. The rates may still go up in December, but they will be lower than the previous month’s figure. Analysts expect a 0.50% hike.

Crypto tokens rallied because tinier hikes mean more money to spend. For instance, say you have a ~$2,000 monthly mortgage for a $300,000 home loan at 3% annual interest. A rate hike of 0.75% will take the mortgage to ~$2,181 per month. But a smaller rate hike of 0.50% will mean a lower mortgage of ~$2,144. This will help you save at least $480 annually that can be used elsewhere.

Quick gains for cryptoThe crypto market needed some good news after the SBF debacle. Bitcoin reacted positively to the Fed statement and crossed $17,000. Ethereum inched closer to $1,300. Polygon rose ~5% towards $1 levels. The total crypto market cap topped $850 billion.

In related news, a whale moved $65.5 million worth of Litecoin from a crypto exchange to multiple wallets. That’s another bull sign.

Will this hold?The market’s been erratic ever since November. Too many crypto companies crumbled one after the other. We’ll have to wait until the Fed meeting on December 14 to find out what happens next.

RIP LBRY

The developers behind the blockchain content platform LBRY are ready with an obituary. LBRY won’t survive for too long.

FYI LBRY is a blockchain-based digital library for ebooks, music, and videos. The content can either be viewed for free or for a fee, based on the creator’s discretion.

Why, though?LBRY blames the US SEC. It says that the company has been “killed” by legal tangles. The SEC filed a case against the company over the sale of its tokens. The court sided with the SEC and termed it unregistered security.

Will the library close?If the parent company dies, we are unsure how the blockchain and content library will run. LBRY Inc has promised that the LBRY protocol will continue. Let’s hope.

More Metaverse For Meta

Duh! Why wouldn’t it be? It changed its name to Meta from Facebook. It must want more. But why does he need to keep saying it?

Over a “five-to-ten-year horizon”That’s the time frame Mark Zuckerberg is giving to his optimism for the metaverse dream. He was speaking at an event on Wednesday. The company’s metaverse-related division has been generating record losses. $3.7 billion in the previous quarter. And these are expected to grow further. Criticism is kind of obvious.

But Zuckerberg is not too worried. “We’ve had doubters the whole time,” he said. SMH.

Being frugal nowThe social media giant’s share price has fallen 64% in the past year. So now there are cutbacks to keep operating with more efficiency and discipline as it builds the metaverse. We’ll see how this pans out.

Regulators Love Bitcoin

The US commodity futures regulator has made a statement that will cause ripples in the crypto world. Bitcoin is a commodity, Ethereum is not.

A complete U-turnThe Commodity Futures Trading Commission has had a change of heart. Back in October, the regulator was hailed for affirming that Ethereum is a commodity. On Wednesday, he said only Bitcoin classifies as one.

Why does it matter?The CFTC has been seen as the friendlier crypto regulator in the US. But recently the regulator is trying to reshape its reputation of being a soft touch.

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