{"id":92168,"date":"2025-12-14T18:07:55","date_gmt":"2025-12-14T15:07:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92168"},"modified":"2025-12-15T12:32:00","modified_gmt":"2025-12-15T09:32:00","slug":"the-week-in-review-the-fed-cuts-rates-as-researchers-de-anonymise-zcash","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/the-week-in-review-the-fed-cuts-rates-as-researchers-de-anonymise-zcash\/","title":{"rendered":"Weekly Wrap-Up: Fed Cuts Rates, Researchers Break Zcash Anonymity"},"content":{"rendered":"

The Fed<\/span> cut its key rate for the third time in a row; US banks were allowed to work with cryptocurrencies; Arkham built a mechanism to track Zcash; Belarus briefly blocked crypto-exchange websites; and other events from the week.<\/p>\n

A hat-trick from the Fed<\/h2>\n

On December 10th the US Federal Reserve cut<\/a> its key rate for the third consecutive time by 25bp, to 3.5-3.75%.<\/p>\n

The move met market expectations. As for the next decision, officials said they would be guided by incoming macro data. The Fed\u2019s committee reiterated its 2% inflation target.<\/p>\n

In addition, the Fed announced plans to purchase US Treasury bonds to replenish its reserves. The first deal will amount to about $40bn.<\/p>\n

That signals a gradual start to quantitative easing, which has traditionally supported risk assets.<\/p>\n

At a press conference, Fed chair Jerome Powell noted that the macro picture had hardly changed: inflation and unemployment remain elevated. He said the US economy was significantly affected by the government shutdown. The rate is now in a \u201cneutral range\u201d, so markets see the situation as a \u201cpause\u201d.<\/p>\n

Meanwhile, media reports increasingly suggested Mr Powell could soon be replaced. The leading candidate is Kevin Hassett, a White House economic adviser.<\/p>\n

The crypto market initially reacted to the rate cut with heightened volatility. Bitcoin tested $91,600-93,300 within minutes.<\/p>\n

\"image\"
Hourly BTC\/USDT chart on Binance. Source: TradingView<\/a>.<\/figcaption><\/figure>\n

Even so, the coin failed to break out of the $88,000-95,000 range, where it has traded for the past two weeks.<\/p>\n

At press time the first cryptocurrency traded around $89,200. Over seven days the asset was little changed.<\/p>\n

The rest of the crypto market largely followed the flagship. Almost all top-10 assets by market capitalisation were in the red, with only modest losses.<\/p>\n

Only Ethereum posted gains (+1.8%), nearly reaching $3,100.<\/p>\n

\"image\"
Source: CoinGecko<\/a>.<\/figcaption><\/figure>\n

The Crypto Fear and Greed Index<\/a> remains in the \u201cextreme fear\u201d zone at 21.<\/p>\n

\"image\"
Source: Alternative.me<\/a>.<\/figcaption><\/figure>\n

Total crypto-market capitalisation stands at $3.14 trillion. Bitcoin\u2019s dominance is 56.8%, Ethereum\u2019s 11.9%.<\/p>\n

Bitcoin enters banking<\/h2>\n

Another notable US development came from the Office of the Comptroller of the Currency (OCC). The agency authorised<\/a> national banks and federal savings associations to act as intermediaries in cryptocurrency transactions.<\/p>\n

Under the framework, institutions will use a classic agency model: entering a transaction with one client while simultaneously opening a mirror (offsetting) position with another. This allows them not to keep crypto on balance sheet and to avoid speculative risks.<\/p>\n

According to the OCC, the initiative will encourage users to shift from unregulated venues to transparent, fully legal instruments.<\/p>\n

Conditions and limits include:<\/p>\n