Crypto Chronicle with NewsCrypto
Good morning NewsCrypto readers!
Today we are going through what Jerome Powell said yesterday at the press conference and also what wasn’t pointed out but should be. Also, we are going to discuss the bankruptcy and phoenix-like rise of the Celsius.
Here's what we got on the menu today:
1. FOMC Press Conference Recap
2. Celsius is Ready to Distribute $3B to Creditors
3. Funny meme
FOMC Press Conference Recap
Powell said the interest rates are still in the "restrictive territory." The big news? He's not planning to cut them in March. So, what does this mean for our beloved crypto? It could go either way but if the Summary of economic projections is going to be bullish in March we could get a pump in prices.
The job market's is holding strong with under 4% unemployment. But hold your horses, the job gains fell below the prior pace. And inflation? It's like that well-behaved kid at the party, staying nicely anchored. Powell's hinting that the economy might not need to soften after all.
The FED is ready to keep rates high if they need to. Cut rates too soon, and inflation might do the cha-cha slide back into our lives. But keep them high for too long, and we might see a weakening of the economy and the job market.
And here's the twist - no one asked about the banking crisis at the conference! Maybe they were all too busy checking their crypto portfolios? Whatever they were doing it was really weird not even one reporter pointed this out.
$NYCB took a 35% nosedive yesterday. New York Community Bancorp, the once-heroic rescuer during the 2023 regional banking crisis, is now facing turmoil of its own.
After playing white knight by scooping up assets from the failed Signature Bank, NYCB reported a surprise net loss of $252 million for the fourth quarter and slashed its dividend. This news sent shockwaves through the regional banking world, with stocks of other mid-sized lenders also taking a hit.
The last drop happened before the bank bailout in March of 2023
The BTC Drop and Potential Pump
All this led to a dip in Bitcoin’s price. But here's the kicker: if the FED keeps rates steady in March, we might just see a bullish Summary of Economic Projections (SEP) because they are expected to lower the rates in May. That could mean a crypto market pump is around the corner!
Celsius is Ready to Distribute $3B to Creditors
The story of Celsius Network's rise, fall, and rebirth reads like a blockbuster script. Celsius has now emerged from Chapter 11 bankruptcy, ready to distribute a cool $3 billion to its creditors and launch a new venture in the Bitcoin mining sector.
The Fall And Rise of Celsius
Remember June 2022, when Celsius hit the pause button on withdrawals, sending shockwaves through the crypto market? Fast forward 18 months, and the company has not only exited bankruptcy but also increased the amount of crypto available for distribution to creditors by a whopping $250 million.
Celsius's bankruptcy exit isn't just about settling debts; it's also about birthing a new Bitcoin mining company, Ionic Digital. Managed by Hut 8 with Matt Prusak at the helm, Ionic Digital is set to "continue to deliver recoveries to creditors." And guess what? Its stock is expected to be publicly traded soon. From the ashes of bankruptcy, a phoenix rises.
A United Front of Creditors
In a world where agreeing on pizza toppings is a challenge, around 98% of Celsius creditors nodded in unison to the bankruptcy exit plan. This consensus is a rare sight in the crypto universe.
Therefore Celsius is winding down its operations and saying goodbye to its mobile and web applications by February 28. But fear not, the distributions to creditors will be made through PayPal, Venmo, and Coinbase.