Crypto News: Market Update November 2023
In November, Callisto Capital achieved a return of 6.6%. Bitcoin also posted a gain of over 8%. However, this month was not centered on Bitcoin; the focus shifted to Binance. This shift occurred due to sudden news about a settlement in the Binance lawsuit. The following day, Changpeng Zhao (CZ), the CEO of Binance, stepped down as part of the settlement, and Binance paid a historic fine of over $4 billion.
November 1: The Fed Holds Interest Rates Steady at 5.25%-5.50%
The Federal Reserve maintained its interest rate at 5.25%-5.50% on November 1. Chairman Jerome Powell indicated that the economic situation remains challenging. Powell highlighted ongoing uncertainty regarding the need for further rate hikes, given the complexities of managing inflation and economic growth. While acknowledging the strong economic growth in the third quarter, Powell stressed that it remains unclear whether current financial conditions are restrictive enough to keep inflation under control. (Source: Reuters)
November 2: SBF Found Guilty on All Charges, Including Wire Fraud.
FTX founder Sam Bankman-Fried has been found guilty on all seven counts of fraud, including wire fraud, conspiracy to commit securities and commodities fraud, and money laundering. The verdict follows a month-long trial during which former colleagues testified against him. Bankman-Fried, who faces a maximum possible sentence of 115 years in prison, maintains his innocence and is scheduled to be sentenced on March 28. (Source: CNBC)
November 3: Nonfarm Payrolls Come in Lower Than Expected.
In October, the number of jobs in the United States increased by 150,000, falling short of the expected 170,000. The unemployment rate rose to 3.9%, the highest since January 2022. This slowdown may suggest a cooling labor market, potentially reducing the pressure on the Federal Reserve in its fight against inflation. (Source: CNBC)
November 13, Judge Analisa Torres set deadlines in the ongoing case between the SEC and Ripple
On November 13, Judge Analisa Torres established new deadlines in the SEC v. Ripple case. Discovery of remedies must be completed by February 12, 2024, followed by the filing of arguments on March 13, 2024. Ripple is required to submit its defense by April 12, 2024, with the SEC’s response due by April 29, 2024. Based on this timeline, lawyers do not expect a decision from the 2nd Circuit before mid-2026. Judge Torres’s final interpretation of the regulatory status of XRP, delivered on July 13, is considered to be enduring. (Source: Binance)
November 14, CPI data came in lower than expected, reaching its lowest point in two years.
In October, the U.S. Consumer Price Index remained unchanged, suggesting a potential easing of high prices. The annual increase was 3.2%, which was lower than expected. Excluding volatile food and energy prices, the core CPI rose by 0.2% and 4%, marking its lowest level in two years. This data led to a significant rally on Wall Street, with traders significantly reducing their expectations of potential rate hikes by the Federal Reserve, indicating a possible halt in rate increases. (Source: CNBC)
November 19: Javier Milei (pro-Bitcoin) wins Argentine elections.
The Bitcoin-friendly candidate Javier Milei has officially won the Argentine presidential election, securing over 2 million more votes than his opponent, Sergio Massa. Although Milei has not yet advocated for using Bitcoin as legal tender, he plans to abolish the Argentine peso and replace it with the US dollar. He has expressed strong opposition to central banks and views Bitcoin as a means to return money to the private sector and prevent politicians from robbing people through inflation. Milei will take office on December 10. (Source: Bitcoin Magazine)
November 20: The United States pursued over $4 billion from Binance in a historic settlement.
The U.S. government is reportedly seeking over $4 billion from Binance as part of a proposed settlement for an ongoing investigation into the world’s largest cryptocurrency exchange. Negotiations also include the potential for founder Changpeng Zhao to face criminal charges in the U.S. related to alleged money laundering, bank fraud, and sanctions violations. An announcement regarding the settlement could occur by the end of this month, though specific details and charges are still unclear. Binance is expected to pay more than $4 billion, which would be one of the largest fines ever imposed in a criminal cryptocurrency case. The settlement aims to balance allowing Binance to continue operations while mitigating negative impacts on markets and cryptocurrency holders. The investigation focuses on potential violations of U.S. sanctions against Iran and Russia, and whether Binance facilitated transactions supporting Hamas. This case represents one of the largest investigations ever conducted by the U.S. Department of Justice into a cryptocurrency company. (Source: Bloomberg)
November 21: Meeting minutes reveal unanimous support from all officials for current interest rate policy.
During the most recent meeting, Federal Reserve officials showed little inclination to lower interest rates in the near term, particularly given ongoing concerns about inflation. The meeting minutes revealed that members are worried that inflation could be persistent or rise further, and they emphasized that policy must remain “restrictive” until inflation convincingly returns to the 2% target level. Although there is broad sentiment on Wall Street that the Fed is done with raising rates, the minutes did not indicate that members discussed when they might start lowering rates, as also reflected in Chairman Jerome Powell’s statement after the meeting. (Source: CNBC)
November 21: Binance CEO steps down and pays billions in fine as part of settlement with the US over money laundering practices.
Binance CEO Changpeng Zhao has stepped down and pleaded guilty to violating US anti-money laundering laws as part of a $4.3 billion settlement, concluding a long-running investigation into the world’s largest cryptocurrency exchange. The settlement includes a personal payment of $50 million by Zhao, making it one of the largest corporate fines in US history. Binance was found to have violated US anti-money laundering and sanctions laws, failed to report over 100,000 suspicious transactions, including those involving terrorist groups, and engaged in practices that facilitated illegal activities. Richard Teng, a long-time Binance executive, will become the new CEO. The settlement allows Zhao to retain his assets and stake in Binance, raising questions about the future of the cryptocurrency exchange. The settlement follows the recent fraud conviction of FTX founder Sam Bankman-Fried. (Source: Reuters)
ovember 29: Gross Domestic Product (GDP) higher than expected.
The U.S. economy grew by 5.2% in the third quarter, faster than previously estimated. However, recent data indicate a slowdown in the fourth quarter, with declining retail sales and employment growth. Inflation is decreasing, which may allow the Federal Reserve to end its rate hiking campaign without causing significant economic damage. (Source: Reuters)
November 30: Core PCE Index figures meet expectations.
In October, inflation met expectations, rising by 0.2% from September and 3.5% year-over-year, as measured by personal expenditures. This could encourage the Federal Reserve to keep interest rates stable or even lower them in 2024. In addition to concerns about rising inflation, there are also signals of slowing consumer spending. In the Eurozone, headline inflation decreased to 2.4%, while core inflation remained at 3.6%, similar to the targets of the European Central Bank and the Federal Reserve. (Source: CNBC)
Conclusion
Callisto Capital achieved a return of 6.6%, while Bitcoin recorded a gain of over 8%. However, the month was predominantly marked by Binance, which came into the spotlight due to an unexpected settlement in their lawsuit. CEO Changpeng Zhao resigned, and Binance faced a historic fine of over $4 billion. Other highlights included the Federal Reserve maintaining interest rates, fraud convictions against FTX founder Sam Bankman-Fried, the pro-Bitcoin victory of Javier Milei in the Argentine elections, a slowing U.S. labor market, lower monthly inflation, and positive GDP figures for the U.S. in the third quarter. In summary, it was a month filled with significant events.
