CRYPTO NEWS

Bitcoin Stable at $19K Despite BOE’s 50 Basis Point Interest Rate Hike

Attempting to fight the raging inflation, the Bank of England raised the interest rates by 50 basis points today.

BTC’s price remained stable, without any significant volatility, unlike what happened yesterday when the Fed did the same.

  • The inflation rates in many countries skyrocketed in the past several months, and the UK is no exception. The percentage there neared 10% for the month of August – levels not seen in several decades.
  • The central bank – the Bank of England – has used primarily one tool to try to battle the galloping inflation – increasing interest rates.
  • The latest hike came earlier today as the institution raised the key interest rate by another half a percentage to 2.25%. Although this is slightly below most expectations, the current level is the highest it has been since the 2008 crisis.
  • Yesterday, the US Federal Reserve did something similar, but the interest rate hike there was 75 basis points. That had a profound effect on BTC’s price as the asset’s volatility brought it down to a new three-month low.
  • The BOE’s action didn’t impact the primary cryptocurrency, at least for now, as it stands calm at around $19,000.
  • Interestingly, when the European Central Bank increased its key interest rates, BTC remained stable as well. So far, it seems only the Fed’s action lead to enhanced volatility.

The post Bitcoin Stable at $19K Despite BOE’s 50 Basis Point Interest Rate Hike appeared first on CryptoPotato.

Luna Classic Adds Over 50% In 24H After Interpol’s Red Notice Slammed Its Price

Early hours of Monday, September 26, Interpol issued a Red Notice against the founder of Luna Classic, DO Kwon. This issuance resulted from Do Kwon losing more than $60 billion in investors’ wealth.  The prosecutors in South Korea explained that Kwon is facing charges for the erosion of investors’ money. In addition to his charges,::Listen

Early hours of Monday, September 26, Interpol issued a Red Notice against the founder of Luna Classic, DO Kwon. This issuance resulted from Do Kwon losing more than $60 billion in investors’ wealth. 

The prosecutors in South Korea explained that Kwon is facing charges for the erosion of investors’ money. In addition to his charges, Do Kwon stands accused of violating the ‘Capital Markets Law,’ with multiple breaches cited. 

Related Reading: Bitcoin Shows Resilience In Dollar-Driven Bloodbath | BTCUSD September 26, 2022

This issue has created conversations in the crypto market regarding the future of Terra firm and the algorithmic stablecoins. This article details events surrounding Do Kwon and how he made it into Interpol’s most wanted List. 

Earlier Developments Leading To Kwon’s Red Notice 

Earlier this year, the Terra ecosystem collapsed, unheard of in an evolving Defi space. The crash hurt the crypto market, with other financial markets feeling its effects. Crypto Analysts believe that investors lost over $45 billion in wealth. 

After the crash, he relocated Terra Headquarters from South Korea to Singapore due to being under investigation for tax evasion charges in South Korea. In an interview, the Terra founder said he would cooperate with investigative agencies in the Terra crash and has nothing to hide. Further, Do Kwon acclaimed that he is a man with an “extremely high bar of integrity.”

However, South Korean prosecutors explicitly refute Do Kwon’s statement claiming he was not cooperating and was obviously on the run. As a result, Interpol has issued a Red Notice on the Terra founder in over 196 countries.

LUNC’s price is currently hovering around $0.00031. | Source: LUNCUSD price chart from TradingView.com
Terra Classic Price Crash And Reversal

Following the news of Interpol’s Red Notice on Do Kwon, the downtrend price of Terra Classic continued. Taking effect of the notice, the $LUNC price declined by nearly 20% immediately after the news, leaving investors disturbed. 

The crash of the Terra Classic token has also led to the collapse of a high-profile crypto hedge fund called Three Arrows Capital. This issue has also impacted several crypto lenders offering LUNC in the market. 

But unexpectedly, the $LUNC has reversed in price action as there is an uptrend in the price. Per coinmarketcap.com, LUNC has gained over 50% in the last 24 hours and currently trades at $0.0003074. Investors should be wary as it could lead to a classic pump and dump scheme. The crypto community awaits further development in price as the search for Do Kwon intensifies.

What Is The Future Of LUNC

A spokesperson for South Korea explained that the Red Notice against Kwon would set a wrong precedence for the crypto industry and may cripple future innovations in the market.

Related Reading: Avalanche Struggle To Break Downtrend, Is $20 Mark Possible?

The collapse of Terra stablecoin will lead to greater regulatory scrutiny in the crypto market. Reports from last week indicate the House of Financial Services Committee has issued a bill introducing a two-year ban on creating and issuing algorithmic stablecoins like Terra. 

Featured image from Pixabay and chart from TradingView.com

Bitcoin Stable at $19K Despite BOE’s 50 Basis Point Interest Rate Hike

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