Fed Rate Cut Sees Bitcoin Above $117K as ETF Flows Cool and Exchanges See Spot Selling

PANews reported on September 22 that according to The Block, the tokenization platform Midas has reached a cooperation with Interop Labs, the developer of the blockchain interoperability protocol Axelar, to jointly launch the XRP tokenized product mXRP. Currently, the product sets a basic yield of 6%-8%, paid in the form of XRP. Users can deposit XRP as collateral in a tokenized structure that tracks the performance of the underlying yield strategy to mint mXRP. These strategies may include market making and providing liquidity, and are managed by third-party asset management institutions known as "risk managers." Midas co-founder and CEO Dennis Dinkelmeyer revealed that Hyperithm serves as the manager of mXRP. In addition to base returns, mXRP can be deployed in various DeFi protocols to generate additional returns. mXRP tokens are issued on the Ethereum Virtual Machine (EVM) sidechain of the XRP Ledger and run on infrastructure provided by Axelar. According to the Midas website, Midas-issued tokens, including mXRP, are not available to users in the United States, the United Kingdom, or sanctioned regions, where access is restricted.

The post Secret Service seizes $1.18m worth of crypto in fraud case appeared on BitcoinEthereumNews.com. Scammers tricked victims into downloading a fake mobile crypto exchange app, and stole their funds if they made a transfer. Summary Federal agents seized $1.18 million in crypto from scammers U.S. Secret Service led an investigation into a global fraud ring Scammers used a fake app to trick victims into transferring their funds to them Crypto-related fraud is becoming more sophisticated, and law enforcement is stepping up. On Thursday, November 13, Federal authorities have seized and forfeited over $1.18 million in crypto connected to an international fraud and money laundering scheme. The forfeiture, led by the U.S. Secret Service, was against a group involved in a scheme that prayed on U.S. citizens. Specifically, criminals impersonated legitimate crypto advisors, and using high-pressure tactics to trick victims into transferring their assets to their accounts. The funds were then liquidated into fiat currency. “The Asset Forfeiture Unit of the U.S. Attorney’s Office and United States Secret Service worked diligently to locate, seize, and forfeit these funds, and are now working to identify eligible victims who may be compensated with forfeited funds,” said U.S. Attorney Margaret E. Heap for the Southern District of Georgia. Scammers use fake apps to lure victims The investigation started when a real estate agent in Richmond Hill, Georgia reported suspicious activity from a prospective buyer. The supposed buyer claimed to be a crypto millionaire and insisted on complicated crypto transactions. He also pressured the agent to download a fake mobile app to make the deal. The app looked like a legitimate crypto platform. However, it was actually controlled by the scammers, and used to steal funds once the victims made a transfer. The U.S. Secret Service then saw a broader pattern, with another victim in North Carolina falling prey to the same fake app. “With the continued evolution of…

BitcoinWorld Crucial Balance Sheet Expansion: Fed’s Bold Move to Boost Market Liquidity Federal Reserve officials are signaling a potential shift in monetary policy that could have significant implications for financial markets. Cleveland Fed President Beth Hammack recently revealed that the central bank might soon initiate a balance sheet expansion to address technical market factors. This development comes at a critical time when liquidity conditions remain tight across global financial systems. What Does Balance Sheet Expansion Mean for Markets? The Federal Reserve’s balance sheet represents the total assets held by the central bank. When the Fed expands its balance sheet, it essentially injects liquidity into the financial system by purchasing securities. This balance sheet expansion serves as a powerful policy tool to ensure smooth market functioning and adequate liquidity supply. President Hammack’s comments highlight several key points: The move would address technical factors affecting market operations It represents a proactive approach to maintaining financial stability The expansion would supply much-needed liquidity to strained markets Why Is This Balance Sheet Expansion Necessary Now? Market conditions have been challenging in recent months, with liquidity becoming increasingly scarce. The potential balance sheet expansion comes as the Fed navigates between controlling inflation and supporting economic growth. Technical factors, including settlement issues and funding pressures, have created the need for additional liquidity injections. This approach differs from quantitative easing programs we’ve seen in the past. Instead of broad economic stimulus, this targeted balance sheet expansion aims to address specific operational challenges in financial markets while maintaining the Fed’s broader monetary policy objectives. How Will Balance Sheet Expansion Impact Different Asset Classes? The effects of balance sheet expansion typically ripple across various financial markets. Increased liquidity often leads to: Lower short-term interest rates Improved market functioning Reduced volatility in funding markets Potential support for risk assets However, it’s crucial to understand that this isn’t a return to the massive stimulus programs of the past. The Fed remains committed to its inflation-fighting mandate, and any balance sheet expansion would be carefully calibrated to address specific technical issues without undermining broader policy goals. What Challenges Does the Fed Face with Balance Sheet Expansion? Implementing a balance sheet expansion while maintaining credibility presents several challenges. The Fed must carefully balance: Market liquidity needs versus inflation concerns Short-term operational fixes versus long-term policy goals Transparency in communication while avoiding market disruption President Hammack’s remarks suggest the Fed is prepared to navigate these complexities. The central bank has learned from previous episodes of balance sheet expansion and appears ready to apply those lessons to current market conditions. Actionable Insights for Market Participants For investors and market watchers, understanding the implications of potential balance sheet expansion is crucial. Consider these key points: Monitor Fed communications for timing and scale indications Watch for changes in repo market conditions and funding rates Assess how different asset classes might respond to increased liquidity Stay informed about technical market indicators that might trigger action The Fed’s potential move toward balance sheet expansion represents a significant development in monetary policy. While addressing immediate technical concerns, it also signals the central bank’s commitment to maintaining orderly market functioning. As we await further details, market participants should prepare for potential shifts in liquidity conditions and their broader implications. Frequently Asked Questions What is balance sheet expansion? Balance sheet expansion occurs when the Federal Reserve increases its asset purchases, injecting liquidity into the financial system to support market functioning. How does balance sheet expansion differ from quantitative easing? While both involve asset purchases, balance sheet expansion for technical reasons targets specific market operations, whereas quantitative easing aims to stimulate the broader economy. What technical factors might trigger balance sheet expansion? Technical factors include repo market strains, settlement issues, funding pressures, and other operational challenges that affect market liquidity. How long might this balance sheet expansion last? The duration would depend on market conditions, but it’s likely to be temporary and targeted rather than a long-term policy shift. Will balance sheet expansion affect interest rates? It may put downward pressure on short-term rates but is unlikely to significantly impact the Fed’s broader interest rate policy. How can investors prepare for potential balance sheet expansion? Monitor Fed communications, understand the implications for different asset classes, and stay informed about market liquidity conditions. Found this analysis helpful? Share this article with fellow investors and market watchers on your social media channels to spread awareness about these important monetary policy developments. To learn more about the latest Federal Reserve policy trends, explore our article on key developments shaping monetary policy and market liquidity conditions. This post Crucial Balance Sheet Expansion: Fed’s Bold Move to Boost Market Liquidity first appeared on BitcoinWorld.