Trump Purchases Burgers with BTC, Arthur Hayes Questions Rate Cuts, and More: Hodler’s Digest, Sept. 15 – 21

Weekly Highlighted Stories

Donald Trump Makes Bitcoin Purchase at NYC Establishment

In a groundbreaking move, U.S. Republican presidential nominee Donald Trump visited Pubkey, a bar in New York City known for accepting Bitcoin. This marks the first time a former U.S. president has utilized cryptocurrency in a purchase.

According to a recent post on X by Pubkey, Trump made a Bitcoin transaction to buy hamburgers while at the bar. Notable BTC supporter and CEO of Professional Capital Management, Anthony Pompliano, was present during this event, which was also highlighted on Trump’s Truth Social account.

This incident followed closely after Trump announced a new token launch via the World Liberty Financial crypto platform, which is managed by his family. In an interesting turn, despite previously labeling Bitcoin a “scam,” Trump has started advocating for Bitcoin miners as part of his campaign for the 2024 election, and even participated in the Bitcoin 2024 conference held in Nashville, Tennessee.

Congressman Critiques SEC’s Approach to Crypto Regulation

During a recent hearing by a House subcommittee focused on digital assets, a Republican lawmaker openly criticized the U.S. Securities and Exchange Commission (SEC) and its chair, Gary Gensler, accusing them of injecting politics into crypto regulation.

In a hearing held on September 18, Arkansas Representative French Hill expressed concerns that Gensler’s approach has created “confusion and uncertainty” within the market.

At the session titled Dazed and Confused: Understanding the SEC’s Politicized Approach to Digital Assets, Hill recommended alternative regulatory methods for cryptocurrency, suggesting the Financial Innovation and Technology for the 21st Century (FIT21) Act, which is currently progressing through Congress.

Hill emphasized, “Supporting a pro-FIT21 and pro-regulatory framework doesn’t imply opposition to the SEC’s actions against bad actors, but rather our resistance to enforcement abuse that hinders legitimate market participants.”

Arthur Hayes Discusses Fed Rate Cut Implications

Arthur Hayes, the co-founder of BitMEX, expressed his belief that the recent rate cut by the U.S. Federal Reserve might have political motivations and could lead to inflationary pressures.

In conversation at the Token2049 event in Singapore on September 18, Hayes speculated that the action could be part of a strategy to enhance support for the Democratic Party.

“I believe that Jerome Powell and Janet Yellen aim to stimulate financial markets to favor the Democrats,” he stated.

The Federal Reserve lowered U.S. interest rates by 50 basis points on September 18, an expected move by analysts. Hayes warned that this could have profound effects on both traditional and cryptocurrency markets, potentially leading to long-term inflation issues.

He noted a disparity between the rate cut decision and existing economic indicators, including strong GDP growth and historically low unemployment rates.

Binance CEO Addresses Nigerian Detention of Executive

Richard Teng, CEO of Binance, reported that his team is diligently working to facilitate the release of executive Tigran Gambaryan, whose health is reportedly deteriorating.

“We have consistently appealed to the Nigerian authorities to secure his release so he can access necessary medical care,” Teng noted at the Token2049 conference in Singapore on September 19.

He mentioned, “There is no justification for holding our personnel; Tigran’s detention is unjust and unwarranted. This situation is distressing for everyone involved, especially the families.”

Binance is prioritizing this issue and has formed a dedicated task force exploring various legal and political options to resolve the matter.

Solana Launches the Seeker Smartphone, Focuses Beyond Memecoins

Solana has recently introduced its new smartphone model, Seeker, which is priced significantly lower than its predecessor and aims to provide more than just basic memecoin functionalities.

The original model, Saga, launched to a lukewarm reception in May of the previous year but gained popularity following a substantial price rise of a memecoin, leading to a sellout. The new Seeker aims to reward its early users, with 140,000 customers having already pre-ordered it.

General Manager Emmett Hollyer stated at the Token2049 event that Seeker will serve as a “rewards magnet” but cautioned that it should not be pigeonholed as just a “memecoin phone.” He emphasized the potential for creating new user experiences with the device.

Market Overview

As the week concludes, Bitcoin (BTC) is valued at $63,127, while Ether (ETH) stands at $2,559, and XRP is priced at $0.58. The total market capitalization has reached $2.20 trillion, as reported by CoinMarketCap.

The top-performing altcoins this week include:

• Sui (SUI) with a gain of 44.76%
• Celestia (TIA) at 33.66%
• Fantom (FTM) recording a 29.04% increase

Conversely, the three altcoins that experienced the largest losses are:

• Helium (HNT) with a decrease of 10.67%
• KuCoin Token (KCS) down by 9.04%
• SATS (1000SATS) declining by 8.71%

Notable Quotes of the Week

“A Trump victory would be bullish for the U.S. market; conversely, a Harris victory might be bearish short term for crypto enthusiasts.”

— Alex Svanevik, CEO of Nansen

“Tigran deserves to be free, and his health is diminishing daily.”

— Richard Teng, CEO of Binance

“While people anticipate a rate cut implying a market surge, I foresee a significant market drop following the Fed’s decision.”

— Arthur Hayes, co-founder of BitMEX

“Legacy regulation struggles with the unique values of decentralization and autonomy within the crypto sector.”

— Ali Khan, tech lead at AS Legal Consultants

“Current market behavior signifies crypto’s maturation similar to other risk assets today.”

— Bobby Zagotta, CEO of Bitstamp

“Bitcoin rejects inflation, similar to how I reject the concept of aging.”

— Bryan Johnson, founder of Blueprint

Forecast of the Week

Bitwise Exec Labels Ethereum as a Contrarian Investment for 2025

Ether’s performance has been lackluster since early 2024, raising questions about whether it could rebound in the upcoming year. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, suggests that Ethereum may be a sleeper investment heading into 2025.

He highlighted Ether’s recent struggles, particularly as it reached a more than 42-month low against Bitcoin on September 16.

While expressing optimism about Ethereum’s future, Hougan indicated that price movements may remain constrained for the remainder of the year. He noted:

“Ethereum’s challenges, while significant, are not existential. Opportunities are abundant; the market may reassess its position as we approach election season and possible regulatory clarity. Currently, it’s a potential contrarian play for the rest of the year.”

Concerning News of the Week

Supreme Court of India YouTube Channel Compromised for Scam

Hackers recently seized control of the Supreme Court of India’s official YouTube channel to promote a fraudulent Ripple and XRP scheme.

On September 20, they rebranded the channel, designed to mislead more than 217,000 followers, and broadcasted a fake livestream featuring Ripple Labs CEO Brad Garlinghouse, encouraging viewers to invest with false promises.

The hackers also altered the channel name, changed its URL, and deleted previous legitimate content. However, YouTube ultimately removed the compromised channel due to violations of community guidelines.

SEC Initiates Sanctions Against Elon Musk Regarding Twitter Inquiry

The U.S. Securities and Exchange Commission has announced it will pursue legal and financial penalties against Elon Musk, compelling him to testify regarding his $44 billion acquisition of Twitter following his previous failure to appear.

The SEC seeks to hold Musk in civil contempt for reportedly contravening the terms set forth in the May 2024 order, which mandated a testimony date of September 19.

Furthermore, the SEC seeks to recover expenses resulting from Musk’s canceled meeting and any other restitution the court deems appropriate.

Do Kwon’s Extradition Case Under Review

The Ministry of Justice in Montenegro is deliberating whether to extradite Terraform Labs co-founder Do Kwon to either the United States or South Korea, following a ruling from the country’s Supreme Court.

On September 20, the Supreme Court indicated that Kwon’s case was forwarded to the Justice Minister after determining that both countries met the criteria for extradition services based on criminal charges related to the significant failure of the Terra ecosystem in 2022.

The collapse marked one of the first major failures in the cryptocurrency industry, leading to multiple firms facing insolvency, including Celsius and FTX.

Top Stories from the Magazine This Week

Analyzing Solana: Insights on Token Supply and Subsidies

A deep dive into whether Solana is oversupplying tokens and debunking common myths about bots and subsidies.

Financial Trends in Asia: China and Bhutan’s Cryptocurrency Landscape

Examining the implications of Chinese money laundering operations involving Tether on Telegram, and how Bhutan has become a significant player in Bitcoin trade.

Collecting NFTs: VonMises and His Acquisitions

Former TradFi professional VonMises has amassed a significant collection of NFTs, particularly CryptoPunks, timing his sales to optimize returns during market highs.