Hey, Your Futures Position got Liquidated?

Federal Reserve Chair Jerome Powell shut down any hopes of the Fed holding Bitcoin, blaming restrictions in the Federal Reserve Act. The crypto market didn’t take this lightly—Bitcoin dropped 5.7%, hitting $100,300, while Ethereum and Solana also dipped. Pro-Bitcoin advocates, including President-elect Trump, are rallying for a U.S. Bitcoin reserve, but Congress holds the keys. For now, markets are riding the uncertainty wave.

The Fed cut rates by 25 basis points, bringing them down to 4.25%-4.5%, but it also raised its 2025 inflation forecast to 2.5%. That sent the S&P 500 plunging and Treasury yields soaring. Inflation’s creeping higher—2.3% in October and a predicted 2.5% for November—so brace yourself for slower rate cuts in 2025. Powell’s message? "Data-dependent decisions." Translation: Stay tuned for more market drama.

BitMEX co-founder Arthur Hayes is sounding the alarm: Trump’s return to office could send the crypto market south. Why? Politicians might focus on short-term gains, shelving big ideas like a Bitcoin Strategic Reserve. Bitcoin’s recent rally to $108,268 has already hit a speed bump, dipping to $104,140. Hayes also points to China’s economic moves as a wildcard, but he’s staying bullish long-term on Bitcoin’s scarcity.

Think taxes are bad? In Japan, Bitcoin inheritance can be taxed over 100%! A Nikkei report shows heirs could face a 55% inheritance tax plus taxes on gains from the original acquisition price. Reform efforts are underway, but PM Shigeru Ishiba isn’t budging. This over-the-top taxation is pushing crypto users toward P2P protocols, proving yet again why decentralization matters.

Michael Saylor’s MicroStrategy just went all-in again, adding 15,350 BTC worth $1.5 billion to its stash. That’s a jaw-dropping total of 439,000 BTC, bought at an average price of $61,725 per coin. Funded by selling 3.88 million shares, this move reinforces the company’s faith in Bitcoin as the ultimate reserve asset. And with BTC yield up 72.4% this year, Saylor’s bold bet seems to be paying off.

Tether is making moves in Europe! It’s partnered with StablR, a euro-backed stablecoin issuer, ahead of the EU’s 2024 MiCA regulations. With Tether’s Hadron platform powering tokenization, stablecoins like EURR and USDR are set to become more accessible and compliant. StablR is also expanding to networks like ERC-20 and Solana, riding the wave of Europe’s growing stablecoin interest.

That’s it for this week’s The Web3 Watch!
Keep building, stay curious, and remember—crypto isn’t just a trend; it’s a revolution. See you next week with more alpha!

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