Powell Stays Put After Trump Win Amid 25bps Rate Cut

The Breakdown First Five - Friday, November 8, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. TBD DOA

Block will shutter their decentralized tech arm, TBD in order to focus on mining. For a brief period, the division within Jack Dorsey’s fintech was building Bitcoin based DeFi and decentralized identification, which they called Web 5. Investment will be redirected to mining, which includes a proprietary mining chip and the Bitkey self custody wallet. The design for the 3nm mining chips was completed in April but there’s still no date for first shipments. 

4. Wonderfi CEO Kidnapping

The CEO of Toronto crypto firm Wonderfi was kidnapped and forced to pay a million dollar ransom to secure his release. Dean Skurka was reportedly forced into a vehicle in downtown Toronto during rush hour on Wednesday. Skurka confirmed that he’s now safe and company funds and data were not impacted. The wrench attacks are becoming more brazen. 

3. Record Inflows

Blackrock posted a record $1.1B worth of inflows on Thursday. Blackrock reports a day behind, so these flows are attributed to Wednesday’s market frenzy. Either way, $1.9B in fresh funds have plowed into the ETF since the election result, the largest 2-day flow since launch.

2. Beijing Water Pistol

Chinese policymakers have announced another round of accommodations to address the deteriorating economy. $1.4T will be spent over 5 years to help local governments tackle hidden debt issues. $840B will be spent up front, beginning this year and running through 2026. The rest will be funded by local government special bonds through 2029. The largest debt swap since the GFC begins, but is it enough?

1. Powell Won’t Leave

Jerome Powell won’t resign under a Trump administration. The Fed delivered a 25 basis point cut as expected. Powell also kept the institution right out of politics, stating there’s a long road between campaign promises and enacted policy, so the election “will have no effects on our policy decisions.” When asked if he would resign on request, he gave a blunt “no”. When asked if he could be demoted or fired, Powell responded “Not permitted under the law.”