Week in Review: Fed keeps key rate, and Bitcoin fails to hold above $27,000

Bitcoin failed to hold above $27,000, the Fed kept its key rate, mining difficulty of the first cryptocurrency reached a new high, FTX filed suit against the parents of Sam Bankman-Fried and other developments of the week.

Bitcoin fails to hold above $27,000

On Monday, September 18, the price of the first cryptocurrency topped above $27,000. In the following days the asset’s price repeatedly fell below this level and, by week’s end, did not hold the psychological threshold.

At the time of writing, bitcoin was trading at $26,600.

Over the week, the top-10 cryptocurrencies by market capitalization did not show meaningful movement. XRP and Solana (SOL) rose 2.6% each, while Ethereum (ETH) and BNB fell 2.4% and 2%, respectively.

Total market capitalization of cryptocurrencies was below $1.1 trillion. Bitcoin’s dominance index stood at 50.1%.

Fed keeps the key rate

On September 20 the U.S. Federal Reserve (the Fed) kept the range for the federal funds rate at 5.25–5.50% per annum. The decision aligned with market expectations.

According to the Fed, inflation in the United States remains high, unemployment is low, and economic activity continues to grow at a steady pace. The regulator will continue to pursue maximum employment and inflation at 2% in the long run.

Bitcoin mining difficulty hits a new all-time high again

As a result of another recalculation mining difficulty for the first cryptocurrency rose by 5.48%. The indicator reached a new high at 57.12 T.

The average hash rate over the period since the previous change was 423.22 EH/s. The block interval was 9.5 minutes.

What to discuss with friends?

• The ChatGPT-generated token rose to $14 million in trading volume on Uniswap.
• Elon Musk proposed making X paid for all users.
• A man shot his wife during a dispute over Bitcoin investments.
• Stablecoin ℓUSD plunged to zero after the DeFi project Linear was hacked.

Solana chief cites reasons for developers leaving the United States

Solana co-founder Solana Anatoly Yakovenko expressed concern about the exodus of blockchain developers from the United States, urging local lawmakers to study the industry more closely for its regulation.

«I meet every day many promising entrepreneurs who want to create the next great technological innovation in America, but do not know how to build a crypto company that meets the requirements. […] Facing a choice: stay in the United States or pursue their dream, more and more founders [of projects] are choosing to leave», — wrote him.

According to Elliptic data cited by Yakovenko, in 2018, 42% of Web3 developers were based in the United States, and by 2022 the share had fallen to 29%.

The head of Solana recalled his childhood in Ukraine, where “access to assets and information was controlled by an iron fist.” After moving to the United States he understood “the boundless opportunities of the country,” where it is realistically possible to realise the idea of “a globally interoperable network that no one person or organization can disable.”

FTX sues the parents of Sam Bankman-Fried

The bankrupt exchange FTX filed suit against the parents of the co-founder and former CEO Sam Bankman-Fried (SBF) to recover allegedly misappropriated funds and property worth “millions of dollars.”

According to the complaint, Joseph Bankman and Barbara Fried used their influence within the company for personal enrichment. As experienced professors at Stanford Law School, they did not assist the exchange but “helped to plunder it,” the complaint alleges.

The complaint does not state the amount of alleged damages, but cites several cases of property transfers. Thus, FTX paid $18.9 million for Blue Water, rights to which were obtained by Bankman and Fried.

Knowledge of tax law and the tangled corporate structure of FTX Group by SBF’s father facilitated the payment to him and his wife of a total of $10 million from Alameda funds, the document states.

Additionally, Bankman received millions of dollars from the exchange for appearing in Super Bowl ads. The defendant “knew or should have known about the precarious financial condition” of FTX, the suit alleges.

Also on ForkLog:

• “Bitcoin leak from the lab.” The community again discusses the NSA’s role.
• The Hong Kong’s biggest crypto scam: details of the JPEX closure.
• Mt.Gox pushed back the compensation date by a year.
• Chainalysis: Ukraine has become fifth in the world by cryptocurrency adoption.

Robert Kiyosaki predicts a mass influx of investors into Bitcoin

The author of the bestseller “Rich Dad, Poor Dad” and entrepreneur Robert Kiyosaki urged readers to invest in gold, silver and Bitcoin before the collapse of the US economy.

He dismissed the question of what their price will be in 2025. In his view, what matters more is how much of them you have today.

«Gold, silver and Bitcoin are good buys today… but not tomorrow. America is bankrupt. Buy them now, before stocks, bonds, real estate and people rush into GSBC,» said Kiyosaki.

What else to read?

In this week’s digest ForkLog covered in cards the main events this week in cybersecurity.

The decentralized finance sector continues to attract heightened attention from crypto investors. ForkLog has compiled the most important events and news of the past weeks in the digest.