Bitcoin reels: Fed decision causes turbulence in the crypto market

The recent decision by the US Federal Reserve to cut the key interest rate by 25 basis points has pushed Bitcoin below the $99,000 mark. Fed Chair Jerome Powell also raised the inflation forecast for 2025 to 2.5 percent, sparking concerns among investors about tighter monetary policy. This restrictive stance, amplified by the anticipated policy changes under the forthcoming Trump administration, triggered a broad sell-off in the cryptocurrency market. Meanwhile, a remarkable partnership in the college landscape between Strike and the up-and-coming USC linebacker Matai Tagoa'i marks a turning point: He is the first college athlete to accept cryptocurrency in his endorsement contracts. Tagoa'i views this decision as a groundbreaking opportunity for long-term financial growth and thanks the involved institutions for their support. The collaboration aims to provide athletes with innovative financial tools and protect them from inflation, representing a significant advancement in college sports. On the downside of the digital business, Ledger warned of a hacker attack where fraudsters impersonate the company to elicit seed phrases from users via fake messages. Ledger emphasized never asking for the 24-word recovery phrases and urged caution, especially during the busy holiday season. In parallel, Ohio Representative Derek Merrin is taking a bold step with the introduction of the "Ohio Bitcoin Reserve Act." The proposed legislation aims to establish a state-managed Bitcoin fund to strengthen the state's financial backing and prepare Ohio against the diminishing purchasing power of the US dollar. This aligns Ohio with states such as Pennsylvania and Texas, which are pursuing similar initiatives. A meeting between Kris Marszalek, CEO of Crypto.com, and President-elect Donald Trump underscores the cryptocurrency industry's ongoing effort to influence the new administration. The discussion reportedly revolved around potential appointments and the establishment of a Bitcoin reserve, highlighting the significant role digital currencies will play in future economic policy decisions.