The November CPI data is one of the key macro-events lined up to potentially define the course of the crypto market and dictate the Wall Street tempo alongside the Fed meeting decision. In a separate development this crypto-week, Bitcoin mining firm Argo Blockchain disclosed growing distress on Monday as it scrambles to explore options to remain operational. The former head of FTX, Sam Bankman-Fried, who resigned last month as the main corporate entity and its US subsidiary (FTX US) filed for bankruptcy, was placed in custody late on Monday.
Here are the specifics you need to know:
Market braces for the last CPI report of the year and FOMC rate decision
The November consumer price index (CPI) data from the Bureau of Labor Statistics is due later today. While the likelihood of the report delivering more surprises is slim, the data is expected to influence the market pace on a macro level slightly. Projections are that the report will bear a moderating, albeit benign, inflation print with a prediction of a 7.3% year-over-year figure from the previous 7.7% figure on an annualized basis.
Later this week, the Federal Reserve will hold a two-day meeting to review efforts to deflate the labor market and ease price pressures. Economists contend that the Fed is still boxed in as its attempts to find a compromise between recession and persistent inflation.
āAvoiding pain is not an option here. Thatās just not on the menu [ā¦] What is on the menu is, āDo we want a little bit of pain very quickly? Or do we potentially wait and then deal with more pain down the road?āā Jefferiesā managing director Aneta Markowska toldĀ Fortune.
In the digital assets market, Bitcoin has seen strong buying interest above $17,100 as bulls seek to solidify a $16,920 support level. Ethereum price has slowed at $1,260 as traders anticipate the CPI data to spur mild volatility.
The majority of other top tokens are trading slightly in the green, with a few like ApeCoin (APE) and Trust Wallet token (TWT), which have corrected 7%and 18%, respectively, in the last 24 hours. Toncoin (TON), Bitcoin SV (BSV), andĀ DashĀ (DASH) have racked up decent gains during this period, with the latter up nearly 10% at writing.
To learn more, visit ourĀ Investing in Open NetworkĀ guide.
Failed FTX exchange CEO Sam Bankman-fried arrested
On Monday evening Damian Williams, the US Attorney for the Southern District of New York, confirmed the apprehension of former FTX CEO Sam Bankman-Fried. His arrest was carried out by Royal Bahamas Police Force officers at the request of the US government, according to a MondayĀ reportĀ from the Office of the Attorney General and Ministry of Legal Affairs. The former crypto billionaire has been staying in the Bahamas and recently appeared in an interview for BBC,Ā promising to start a new venture to repay FTX usersĀ who lost their funds.
āEarlier [today], Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time.āĀ Williams said in a statement.
Prime Ministerās Director of Communications, Latrae Rahming, noted that the former crypto billionaire would remain in custody as specified by the Bahamas Extradition Act. SBF was set to appear remotely before Congress on Dec. 13, but the House Financial Services Committee chair Maxine WatersĀ communicatedĀ that the virtual congressional testimony wouldnāt be possible in light of his arrest.
Ā āThe public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.āĀ Waters questioned the timing of the arrest.
SEC to separately charges SBF for violations of securities laws
The former FTX boss was also requested to attend a separate hearing on Dec. 14 with the Senate Committee on Banking, but his attendance remains in question as he didnāt respond to the request before the deadline. A joint Dec. 12 announcement from US Senators Sherrod Brown and Pat Toomey revealed that his lawyers reportedly gave a blind to a subpoena compelling his appearance. The United States Securities and Exchange Commission said late on Monday that it is preparing to file other charges against him different from the ones aligned with the arrest. Quoting a tweet from Office the US Attorney SDNY, SEC director Gurbir GrewalĀ saidĀ that the commission has āauthorized separate chargeā which will be filed publicly today.
MakerDAO to progress with its āmost important deploymentsā this year
In addition to parameter changes to its Starknet bridge and the ecosystemās open market committee, MakerDAO, the decentralized autonomous organization behind Maker, has long-term plans to improve its infrastructure and products. The DAO is set to execute eight governance proposals that the community voted on on Dec. 11. TheĀ proposalsĀ include a compensation package for recognized delegates who have been granted power by other Maker (MKR) token holders to vote on their behalf.
Up to 20 maker delegates will receive a cumulative 103,230 DAI ($103,230) after the execution of the proposal bundle. The compensation is a reward for these delegates who regularly participate in DAO governance issues on behalf of those members not wishing to take part in the same. Other governance actions in the proposal awaiting execution include bumping the DAI savings rate up from 0.01% to 1%, removing the renBTC-A vault, and offboarding its renBTC token as collateral. The bundle also features two additions to the Maker protocol: onboarding multiple BlockTower credit vaults and adoption of Gnosis DAO (GNO) token as collateral.
To learn more, visit ourĀ Investing in MakerĀ guide.
Argo signals it is on a path leading to Chapter 11 bankruptcy
Elsewhere, reports around mining firm Argo Blockchain in the past week have shown a dire financial situation. The mining firm mistakenly revealed insufficient funds to stay afloat through the next month in āinadvertently published materialsā last Friday. In an Oct. 31 statement, Argo reported that it was at risk of becoming cash flow negative within a vague ānear termā timeline it sees no capital injection. The company previously disclosed in its JuneĀ operational updateĀ that it sold 637 Bitcoin for roughly $15.6 million to repay a debt to Galaxy Digital, which facilitated BTC-backed loans.
The minerās records show that it secured loans totaling $20 million and $25 million as part of these crypto-backed loan agreements in 2021. The firm shared in a MondayĀ statementĀ an update that it is advanced stages of selling its assets and looking for an equipment financing arrangement to avoid sinking into bankruptcy. Argoās latest operational update shows that it mined 198 Bitcoin or Bitcoin Equivalents last month and held 126 BTC (116 Bitcoin equivalents) at the end of November. Argoās potential filing for Chapter 11 bankruptcy would see it join several otherĀ mining entities like Compute North have followed this courseĀ amid a multi-year bearish cycle.
