Bitcoin Breaks $62K as Fed Slashes Rates by 50 bps

Bitcoin Breaks $62K as Fed Slashes Rates by 50 bps

Bitcoin surged past $62,000 following the Federal Reserve’s decision to cut interest rates by 50 basis points (bps), marking the first reduction in four years. The cut, which brought the federal funds rate to 4.75%-5%, was driven by the Fed’s increased confidence in controlling inflation. Jerome Powell, the Fed’s chair, reiterated that while the US economy remains strong the fight against inflation continues.

Bitcoin’s price reacted immediately after the announcement, further boosting its year-to-date gains. Gold also hit a new high before retracing, while the US dollar index (DXY) briefly dropped to its lowest level since July 2023. The Fed's decision is likely to shape risk assets, including cryptocurrencies, in the coming months, while further cuts are also expected.

‍

Trump Buys Burgers For $998 Using Bitcoin at NYC Bar

Donald Trump made headlines by spending $998.70 in Bitcoin on burgers at PubKey, a Bitcoin-themed bar in New York City. The transaction, processed via the Strike app using the Bitcoin Lightning Network, marked the former president’s first publicly known Bitcoin purchase. Trump’s visit was part of his ongoing effort to engage the crypto community as he campaigns for the 2024 presidential election.

While protests greeted him outside, inside the bar, Bitcoin fans cheered as Trump declared the moment “history in the making.” The payment included free burgers and Diet Cokes for patrons, underscoring Trump’s growing interest in digital assets. Could this date be remembered as "Bitcoin Burger Day," similar to the famous Bitcoin Pizza Day?

‍

Revolut to Launch a Stablecoin Amid Crypto Expansion

Revolut is reportedly in the advanced stages of launching its own stablecoin, as part of its broader strategy to expand cryptocurrency offerings. The London-based fintech company, valued at $45 billion, has already integrated crypto services into its app and is now aiming to compete with major stablecoin players like Tether and Circle.

The planned stablecoin would serve as a key asset for Revolut’s crypto expansion, which follows the firm’s recent acquisition of a UK banking license. Revolut has positioned itself as a compliance-first crypto provider, aiming to attract both retail and institutional clients in the space. Currently, the global stablecoin market, led by USDT, continues to grow in profitability and regulatory clarity.

‍

Dark Angels Execute Largest Crypto Ransom at $75M

Hacking group Dark Angels received a $75 million ransom in Bitcoin after breaching pharmaceutical giant Cencora in February, marking the largest crypto ransom ever recorded. The attack targeted sensitive patient data, and after negotiations, Cencora paid the ransom in three Bitcoin payments. ZachXBT identified the transactions, bringing transparency to what the company had kept private.

Dark Angels, a notorious Russian-based cybercrime syndicate, has been labeled as the top ransomware threat of 2024. The attack highlights a broader trend of rising ransomware threats in the crypto industry, with blockchain firm Chainalysis reporting over $450 million lost to such incidents in the first half of 2024. Despite paying the ransom, Cencora has since worked to reinforce its cybersecurity defenses.

‍

Data of the Day

Coinbase’s Layer 2 blockchain, Base, recorded over 4.6 million transactions in a single day, decisively outpacing its closest competitors. On the same day, Taiko processed 2.4 million transactions, while Arbitrum and Optimism handled 1.4 million and 526,000, respectively.

Base’s growing transaction volume reflects its increasing user adoption and scalability as a Layer 2 network. The surge in activity is also linked to the recent launch of cbBTC, a wrapped Bitcoin token on Base and Ethereum, which aims to compete with WBTC in DeFi applications.

‍

More Breaking News

• Ethena Labs, a DeFi provider known for its synthetic dollar USDe and ENA token, suffered a security breach of its frontend website.
• Bitget and Foresight Ventures have invested $30 million in The Open Network (TON) to support Telegram-based projects like Hamster Kombat and Notcoin.
• Bitstamp plans to expand its business in Australia, with Robinhood set to acquire the exchange for $200 million to enhance its presence in Europe and Asia.
• Despite Ethereum’s underperformance and hitting its lowest ETH/BTC ratio in three years, Bitwise CIO Matt Hougan sees a wildcard investment opportunity.
• The SEC charged Rari Capital and its founders for operating as an unregistered broker, reaffirming that DeFi projects can't escape behind decentralization.
• Former Coinbase executives have launched TrueX, a non-custodial exchange using PayPal’s PYUSD stablecoin as the default settlement currency.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.