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• The Federal Reserve raised the federal funds rate by 25bps.
• Bitcoin’s price has stayed relatively flat at $28,500 upon announcement.
• The Fed sees 5.1% on the median dot plot for the end of 2023 and 4.3% for the end of 2024 and expects one more rate hike.

FOMC Verdict: Rates Raised by 25bps

The Federal Reserve raised the federal funds rate by 25 basis points, taking it to 4.75 – 5%. This decision was largely expected and did not have a significant impact on Bitcoin’s price which remained relatively flat at $28,500.

Fed Dot Plot

The FOMC released its latest “dot plot” which shows expectations for interest rates over time. The median dot plot for the end of 2023 is 5.1%, with 4.3% expected for the end of 2024, indicating that there may be one more rate hike before then.

Latest Fed Statements

The Fed is dropping „ongoing rate hikes“ from statements and says that „US banking system is sound and resilient.“ All eyes are now on Powell who will be discussing new economic projections at 6:30 PM GMT today (March 22nd).

Market Reaction

The market reaction to the news was relatively muted with Bitcoin staying flat at $28,500 following the announcement, indicating that investors are increasingly immune to traditional economic events such as these due to their independence from fiat currencies like US Dollars or Euros.

Conclusion

Overall, this FOMC meeting saw no surprises with a widely expected 25bp raise in rates but all eyes remain focused on Jerome Powell who will be giving his assessment of current economic projections later today (March 22nd).

• Bitcoin investors are turning to self-custody due to banking sector concerns
• 70,000 BTC have been withdrawn into self-custody since the collapse of SVB on Friday
• James Van Straten is a freedom and technology maximalist, seeing Bitcoin as the greatest invention of the 21st century.

Self-Custody Surge

Bitcoin investors are increasingly demanding greater control over their investments with a surge in self-custody withdrawals causing significant BTC volume to leave markets. Yesterday saw one of the biggest % changes in self-custody in the past six months — while roughly 70,000 BTC have been withdrawn into self-custody since the collapse of SVB on Friday.

Why Self Custody?

Being able to control your Bitcoin is one of its advantages, as opposed to being at the whim of a bank — where you have no control of their lending capabilities. Self-custody offers users unparalleled security, as they can store their funds offline away from hackers and other malicious actors.

What Is Bitcoin?

Bitcoin is a decentralized currency that defies the sway of central banks or administrators, transacting electronically and circumventing intermediaries via a peer-to-peer network. It has become increasingly popular amongst traders and investors who seek an asset class free from government interference and manipulation.

James Van Straten’s Views

James Van Straten is a Research Analyst at CryptoSlate and passionate about data, technology, and identifying trends. He believes that Bitcoin is the greatest invention of this century as it provides users with freedom from traditional banking systems and makes them more secure through its decentralization feature.

Disclaimer

CryptoSlate takes no responsibility should you lose money trading cryptocurrencies; buying or trading cryptocurrencies should be considered high risk activity by all parties involved in such transactions.

• The article explains how the increased demand for electric vehicles (EVs) has led to a shortage of lithium-ion batteries used in these vehicles.
• It looks at the current situation with battery production and highlights some of the issues that could arise due to the shortage.
• Finally, it provides suggestions on how to address this problem and ensure that there is enough supply of batteries for EVs.

Introduction

The growing demand for electric cars has created an increase in demand for lithium-ion batteries which are used to power these vehicles. This has caused an imbalance between supply and demand, leading to a global battery shortage.

Impact

The shortage has had a variety of impacts, including a reduction in production rates from some manufacturers, higher prices for consumers, and even delays in delivery times. This could have serious implications for both the automotive industry as well as consumer confidence in electric vehicles.

Solutions

To mitigate the effects of this shortage, manufacturers should look at investing in new production capacity or ramping up existing facilities. Additionally, research into alternative battery chemistries could help create more efficient options that can be produced faster and cheaper than traditional lithium-ion batteries.

Conclusion

The increasing demand for electric cars is driving up demand for lithium-ion batteries but this trend is also creating a global shortage which is having adverse effects on both producers and consumers alike. Investing in new production capacity or researching alternative battery chemistries could help rectify this issue and ensure there’s enough supply to meet future demands.

Takeaway Message

To ensure an adequate supply of lithium-ion batteries for electric vehicles, it’s important for manufacturers to invest in new production capacity or explore alternative battery chemistries that can be produced quicker and cheaper than traditional ones.

FTX Exchange Deficient of Assets

• FTX finds only 1 BTC out of 1,591 customer-owned at time of collapse.
• The now-defunct exchange holds a total of $8.7 billion in liabilities to customers.
• The exchange has identified only $2.2 billion in assets with $694 million highly liquid currencies and $385 million customer receivables.

Court Documents Reveal Financial Hole

According to newly filed court documents, the cryptocurrency exchange FTX is facing an $8.7 billion hole in customer assets between FTX.com and FTX US. This was revealed during a presentation of the company’s current assets and liabilities on Mar 2nd by its CEO John J. Ray III, who stated that their books and records are incomplete or totally absent in many cases. Currently, the company holds only one Bitcoin against the 1,591 it owes to customers; these holdings are offset by Alameda Research’s net borrowings of $9.3 billion – resulting in an overall deficit for FTX’s customer accounts when compared to what they owe customers overall.

$2.2 Billion Assets Identified – But Still No Preferred Creditor Details

The filing reported that approximately $2.2 billion worth of assets have been identified so far –with only $694 million being held in highly liquid currencies like fiat, stablecoin, BTC or ETH; along with customer receivables worth around $385 million (while there are outstanding claims totaling up to around $618 million). Additionally unauthorized transfers have withdrawn an additional sum of approximately $432 million from wallets linked to both FTX exchanges combined – further exacerbating their financial difficulties and making it unlikely that all customers will be paid back in full even with the successful conclusion of the bankruptcy proceedings which could take years before being complete according to legal experts familiar with such cases .

FTX CEO Promises Continued Public Disclosure

In response to this situation, current FTX CEO John J Ray III promised to continue public disclosure about any new developments related to their bankruptcy case as well as efforts taken by them for maximizing return for creditors through asset recovery initiatives or other scenarios which may be available depending upon how things develop going forward .

Conclusion

FTX is currently facing an unprecedented financial crisis due to missing or incomplete accounting records which resulted in insufficient funds being held by them against customer liabilities amounting up to roughly 8.7 billion dollars spread across cash/stablecoins & crypto assets including Ethereum ,Solana & hundreds of other tokens users were previously allowed trading access too . Despite identifying 2$billion worth of assets ,the unauthorized transactions made from wallets linked with both exchanges have further worsened its situation & makes it highly unlikely all creditors will receive their dues back anytime soon , specially once bankruptcy proceedings start taking place which could take years before reaching a conclusion .

– Coinbase recently announced the launch of its new product Base, an Ethereum layer 2 that enables anyone to build dApps cost-effectively.
– Chris Blec argued that Base is an integral part of WEF plans for CBDCs and a cashless society.
– There were no explicit narratives about Base being permissionless to use, with Blec warning it will be a KYC-chain, meaning only those who verify their identity will be granted access.

Coinbase Launches New Product “Base”

Coinbase recently announced the launch of its new product Base, an Ethereum layer 2 enabling anyone, anywhere to build dApps cost-effectively. The goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy.

Suspicions Over Ethereum’s Network Neutrality

The news rekindled the discussion about Ethereum being co-opted by entities who seek to censor and centralize the chain. Following notice of U.S. Treasury sanctioning Tornado Cash mixer in August 2022, Ethereum was under fire over its lack of network neutrality in “bowing” to pressure and complying with authorities. The agency stated that over $7 billion of illicit funds had been laundered through the protocol including funds stolen by North Korean hacking group Lazarus.

What Makes Coinbase Base Different?

Unlike other ETH layer 2s Coinbase already has a captive userbase which developers have access to from the off. Additionally, Coinbase stated that Base would not incorporate a token; instead Ethereum will be used as native gas token for powering transactions on platform’s decentralized applications (dApps).

Base As A Cornerstone Of WEF Plans?

Chris Blec warned that despite being permissionless to build on, there are still no explicit narratives about it being permissionless to use; making it more likely for it become KYC-chain where only those who verify their identity are granted access – thus becoming integral part of WEF plans for CBDCs and cashless society initiatives..

Conclusion

Coinbase’s newly announced product “Base” is a crucial aspect of World Economic Forum (WEF) plans for Central Bank Digital Currency (CBDC) tech according to Chris Blec; however there are still suspicions around network neutrality due its potential KYC requirements and ability to control usage on chain

• FTX’s former employee Nishad Singh is reportedly preparing to reach a plea deal with U.S. prosecutors.
• He previously served as the exchange’s director of engineering and is now said to face charges.
• The CFTC and SEC are also reportedly set to file charges against him in relation to activities such as campaign financing and software development for transferring funds between FTX and Alameda Research.

FTX Employee’s Legal Situation

FTX’s former employee, Nishad Singh, is reportedly approaching a plea deal with U.S. prosecutors according to Bloomberg News on February 17th. Singh served as the exchange’s director of engineering and is now said to face charges from both the U.S Attorney’s Office for the Southern District of New York, as well as from the CFTC and SEC who plan to file additional charges related to activities such as campaign financing and software development for transferring funds between FTX and Alameda Research.

Cooperation Deal Discussed

Bloomberg news reported that Singh had discussed a cooperation deal back in January 10th which was likely leading towards a plea deal at that time, though he was not accused of any wrongdoing yet. According to reports starting Jan 5th, authorities were already investigating Singh for possible illegal activities which could potentially provide assistance in the criminal case against Sam Bankman-Fried, co-founder and former CEO of FTX.

Plea Deals Reached Before

If Singh reaches a plea deal it will be his third fellow FTX associate after Caroline Ellison (former Alameda Research CEO) and Gary Wang (co-founder) who have both pled guilty in December for cooperating against Bankman-Fried who awaits trial still today.

No Confirmation from Agencies

None of the above agencies have publicly confirmed Bloomberg’s statements yet, so this story remains incomplete until further news comes out about this situation or if any confirmation is made by any agency involved when more details come out later on regarding this developing story concerning FTX’s former employee Nishad Singh’s legal situation .

Conclusion

The implications that this case has on not only banks but crypto exchanges should be taken into account when looking at how businesses are run within these industries moving forward because they may become stricter due cases like this one coming up down the line if similar situations arise again soon enough in other places around the world eventually leading towards tighter regulations depending on what happens with cases like these ones involving Nishad Singh very soon enough in 2021 or 2022 accordingly at some point later on down the road possibly sooner rather than later depending on many different factors going forward essentially long term inevitably

• The US House Committee on Financial Services has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC).
• Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges.
• The SEC is currently facing backlash over its recent enforcement action against the crypto exchange Kraken.

Charges Filed Against Sam Bankman-Fried

The United States House Committee on Financial Service has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC). The lawmakers wrote that the timing of the SEC’s charges against SBF raises „serious questions about its process and cooperation“ with the US Department of Justice (DoJ).

Request for Documents from SEC

Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges. The Committee further asked the financial watchdog to provide similar documents of its interactions with the DoJ during said period. The SEC has been asked to produce these documents before Feb. 24th.

SBF Arrested in Bahamas

SBF was arrested on Dec 12 in Bahamas after US Attorney Damian Williams filed criminal charges against him. On Dec 13, both SEC and Commodity Futures Trading Commission (CFTC) have also filed their own charges against him as well.

Backlash Against SEC Enforcement Action

The SEC is currently facing backlash over its recent enforcement action against crypto exchange Kraken which sparked a debate around regulation by enforcement for staking activities conducted by exchanges like Kraken, Binance etc.,

Conclusion

In conclusion, it appears that there are many raised questions regarding how exactly did SBF get charged, what was his relation with DOJ prior being arrested? Moreover, why is there such a sudden pushback towards crypto exchanges conducting staking activities? All these questions remain unanswered as we await more information from official sources involved in these cases

• The crypto market has seen significant turmoil in the past few months, culminating with the collapse of FTX in November 2022 and a three-year low of $15,500 for Bitcoin.
• Since then, Bitcoin has recovered and posted notable returns, but the market is still unstable due to ongoing bankruptcy proceedings and macro uncertainty.
• CryptoSlate analyzed on-chain and macro data factors to present both sides of the argument as to whether or not Bitcoin has bottomed.

Crypto Market Turmoil

The crypto market has been through a tumultuous period over the past few months due to significant sell-offs from prominent industry players such as Terra (LUNA) in June 2022 and FTX in November 2022. This culminated with a three-year low of $15,500 for Bitcoin.

Recovery But Unstable Market

Since then, Bitcoin has recovered somewhat and posted notable returns – hovering around $23,000 since the end of January 2023 – but the market remains unstable due to ongoing bankruptcy proceedings for FTX and other large companies as well as macroeconomic uncertainty caused by an impending recession.

Analyzing On-Chain & Macro Data

CryptoSlate looked at different on-chain and macro data factors that could either push Bitcoin down to a new low or suggest that it has already bottomed out. These included analyzing net position change in addresses holding over 1,000 BTC; long-term holder supply; perpetual funding rates; total supply in profit; various on-chain indicators; as well as Fed interest rate hike policy shifts.

Whales Accumulating & Long Term Holder Supply Increasing

The net position change analysis indicated strong cycle bottoms with whales embarking on an accumulation spree during the Terra collapse in June 2022 while long term holders were also increasing their supplies of Bitcoin similarly throughout this period. Perpetual funding rates were no longer negative while total supply in profit was growing which all showed positive signs that suggested a potential bottom had been set.

Fed Policy Shifts & Uncertainty Around Narratives

On top of this positive data analysis, shifts in Fed policies have also paused interest rate hikes which would provide some level of stability for cryptocurrencies going forward although there is always uncertainty around narratives which could further push Bitcoin down if things don’t go according to plan.

• The Monetary Authority of Singapore’s Chairman Tharman Shanmugaratnam questioned if regulating the crypto industry would give credibility to speculation.
• Shanmugaratnam argued that lawmakers could steer clear from the crypto sphere and make it clear that the whole space is unregulated.
• He also acknowledged that this is only possible if crypto companies don’t offer services typical to traditional finance institutions.

The Monetary Authority of Singapore (MAS) recently held a discussion at the WEF23, wherein Chairman Tharman Shanmugaratnam raised a controversial take on crypto regulations and questioned if regulating crypto could legitimize speculation.

Shanmugaratnam noted that while crypto regulations need to be in place to combat money laundering, it may be better to leave the industry unregulated if crypto companies do not offer services typical to traditional finance institutions. He argued that by doing so, lawmakers could make it really clear that the whole space is unregulated and investors have to invest on their own risk.

However, Shanmugaratnam also acknowledged that this may only be possible if crypto companies don’t offer services similar to those of traditional finance institutions. He said that if crypto companies would like to do things that traditional finance is doing, they should be subject to the same regulations.

The MAS chairman further noted that crypto regulation is still in its infancy and that it is important that the regulations are thought through carefully and not rushed into. He concluded by saying that the crypto industry needs to be given time to develop before any regulations are implemented.

Overall, the discussion at the WEF23 revealed that even though crypto regulations are necessary, it is important to consider the implications of regulating the industry. While it could provide investors with more security, it could also make the industry more attractive to speculators, which could have unintended consequences.