CryptoSlate Wrapped Daily: Bitcoin slumps after CPI release; Fed Vice Chair warns banks on crypto company deals CryptoSlate Wrapped Daily: Bitcoin slumps after CPI release; Fed Vice Chair warns banks on crypto company deals
Bitcoin falls by 3% as 8.2% CPI data suggests the Fed will increase rates by 75bps, Fed Vice Chair calls on banks to deal cautiously with crypto firms, and much more in this edition of CryptoSlate Wrapped Daily.
3 min read
Updated: Oct. 13, 2022 at 11:58 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The biggest news in the cryptoverse for Oct. 13 includes Bitcoin falling by 3% as CPI data of 8.2% worsen fear of rate hikes, Binance allegedly filing inadequate financial reports in the UK, STEPN denying lay-off claims, and U.S. lawmakers demanding a probe of ERCOT for paying Bitcoin miners in Texas.ย
CryptoSlate Top Stories
Bitcoin slumps 3% as data reveals hotter than expected CPI print
September’s Consumer Price Index (CPI) data released today showed an 8.2% rise in inflation. Following the announcement, BTC dipped by 3% to bottom at $18,200.
Analysts predict that with higher CPI figures, the Fed will necessarily hike rates by 75 basis points come Nov. 3.
Fed Vice Chair urges banks to deal cautiously with crypto firms
Michael Barr called on federally regulated banks dealing with crypto firms to ensure that they have measures put in place, to prevent crypto-related risks from spilling over into the broader economy.
Barr cautioned that liquidity risks such as a bank run on crypto exchanges in partnership with a bank may undermine its financial stability.
Elizabeth Warren-led US lawmakers demand probe of ERCOTโs support for Bitcoin miners in Texas
Many crypto miners are setting up their rigs in Texas, owing to the Electricity Reliability Council of Texas (ERCOT)’s crypto-friendly policies.
A group of U.S. lawmakers led by Senator Elizabeth Warren has called for an investigation into ERCOT’s mining policies.
The lawmakers stated that it is unfair for the miners to be paid by the state for curtailing the energy load they incurred on the grid.
October becomes worst month in DeFi history as hackers steal $718M across 11 protocols
October has been more of “Hacktober” as 11 DeFi protocols lost $718 million in the first two weeks of the month.
According to Chainalysis, cross-chain stood out as the biggest target for hackers. About $600 million has been lost to three bridge hacks, with Binance BNB chain accounting for $100 million of the recorded losses.
French cyber-crime authority leverages ZachXBTโs research to apprehend NFT scammers
Prominent figures including footballer Neymar and rapper Eminem reportedly lost their Bored Ape Yacht Club NFTs worth about $2.5 million to phishing scams.
However, on-chain sleuth ZachXBT launched an investigation that helped the French cyber-crime authority arrest the group of five NFT scammers.
Binance allegedly filed inadequate financial report in UK โ FT
Binance partnered with Dimplx to register Binance Digital back in 2019. However, a severed relationship has led Dimplx to reveal that Binance falsely reported the financials of their UK subsidiary and failed to remit tax dues.
Dimplx said it would proceed to sue the leading crypto exchange for filing inadequate financial reports.
How Bitcoin turns El Salvador into the next Singapore according to Max Keiser
Bitcoin maximalist Max Keiser said El Salvador’s move to make Bitcoin a legal tender helped the country’s GDP grow by 10% and its tourist visitors increase by 83% as of the end of 2021.
Consequently, the country is working to implement appropriate securities laws to put Bitcoin at the core of the country’s international trading strategy. The move will supposedly see El Salvador become the central financial hub of Latin America.
STEPN denies claims of layoffs
Earlier reports claimed that move-to-earn gaming company STEPN laid off over 100 staff members.
STEPN has reached out to CryptoSlate to debunk the reports. However, it admitted to only relieving volunteer MODs of their roles.
Research Highlight
US debt surpasses $31 trillion
The national debt of the world’s leading economy has reached a peak of over $31 trillion, with its debt-to-GDP ratio standing a 137%.
Given a 3.2% interest rate, the U.S. would need to pay up to $1 trillion to service the debt annually.
Consequently, the U.S. may have to borrow more or embark on aggressive quantitative easing (QE) to pay up its debt, which may worsen the recession fears.
News from around the Cryptoverse
Uniswap Labs Raises $165M
Decentralized exchange platform Uniswap Labs announced that it has raised $165 million in a Series B round to advance its web app, developer tools, and NFT project.
Voyager Digital Creditors oppose plans to immune Execs from lawsuits
Voyager Digital executives had filed a motion seeking to provide them immunity against legal confrontations.
Voyager’s unsecured creditors’ committee (UCC) opposed the motion on the grounds that the executives want to evade the responsibility of paying back creditors from the $1.4 billion expected from FTX.
Crypto Market
Bitcoin (BTC) increased by 1.08% to reachย $19,392 in the last 24 hours, while Ethereum (ETH) dipped by -0.63% to trade at $1,293.
Biggest Gainers (24h)
- SingularityNET (AGIX): +51.47%
- Mdex (MDX): +30.63%
- Status (SNT): +16.25%
Biggest Losers (24h)
- Convex Finance (CVX): -9.03%
- Klaytn (KLAY): -8.22%
- Decentralized Social (DESO): -7.8%
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Posted In: Wrapped
Author 
Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
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STEPN is a Web3 lifestyle app with fun social elements and gamification design.