Maji Reduces ETH Long Position, Incurring Significant Losses
As Ethereum (ETH) experienced a price drop below $3200, trader Maji (Huang Licheng) reduced their ETH long position by 2100 tokens, resulting in a loss of $130,000.
Maji's long position's latest liquidation price is set at $3193.9, meaning liquidation could be triggered at any moment. The remaining 9000 tokens currently hold a floating loss of $630,000.
Gemini Secures CFTC Approval for Prediction Markets, Eyes Future Derivatives Expansion
Crypto exchange Gemini Space Station, Inc. (ticker symbol GEMI) has obtained approval from the Commodity Futures Trading Commission (CFTC) to operate a Designated Contract Market (DCM). Gemini announced that its prediction platform, named "Gemini Titan," will initially feature binary event contracts, which involve simple "yes or no" inquiries about future occurrences. The exchange indicated that the platform may subsequently expand into other regulated derivatives markets, including cryptocurrency futures, options, and perpetual contracts.
Federal Reserve Cuts Interest Rates by 25 Basis Points, Forecasts Limited Future Reductions
On December 10th, the Federal Reserve announced a 25 basis point reduction in its benchmark interest rate, bringing it down from the 3.75%-4% range to 3.5%-3.75%. This marks the Fed's third consecutive rate cut, accumulating a total reduction of 75 basis points. The Fed's statement indicated that current economic indicators show moderate expansion, though job growth has decelerated this year and the unemployment rate saw an increase prior to September. Recent data aligns with these observations. Notably, significant disagreements were evident among members of the Federal Reserve's Monetary Policy Committee regarding the vote. Governor Milan, whose term concludes in January, voted against the cut for the third consecutive time. Schmid opposed the cut for the second consecutive time. Three members voted against the reduction, a situation not seen since September 2019.
The projected future policy path, as illustrated by the "dot plot," suggests the Federal Reserve anticipates only one interest rate cut in 2026 and one more in 2027, after which the federal funds rate is expected to approach its long-term target of approximately 3%. These projections remain consistent with the September update, but the chart highlights the internal debate within the committee concerning the trajectory of interest rates. In addition to the interest rate decision, the Federal Reserve also announced its intention to resume purchasing Treasury bonds.