The Federal Reserve reduced interest rates by 0.25 percentage point to a three-year low after a divided Federal Open Market Committee vote, even as Donald Trump had urged a 0.5-point cut. Bitcoin briefly spiked to $94,000 before easing toward $90,000, and policymakers currently foresee only one rate reduction next year as 2026 approaches. With Jerome Powell’s term ending and Trump set to appoint a successor, leadership uncertainty is adding to market volatility. These overlapping policy and personnel shifts are shaping expectations for Bitcoin and broader risk assets.

Binance and former CEO Changpeng Zhao face legal action from hundreds of plaintiffs affected by the October 7, 2023 attacks in Israel. A lawsuit filed in North Dakota alleges the exchange knowingly facilitated financial transfers for Hamas and related groups, potentially involving hundreds of millions of dollars, according to court documents. The complaint claims these activities continued despite internal warnings and contributed to operations that resulted in 1,200 deaths and 250 hostages.

Bitcoin rebounded to $87,000 following a week that saw the cryptocurrency approach $80,000 support levels. The weekend rally lifted smaller digital assets, though historical data shows weekend trading volumes run 20% to 25% lower than weekdays, according to research published by Advances in Consumer Research in August. This creates thinner market conditions where momentum-driven trades exert greater price impact.

Strategy's approximately 650,000 BTC holdings are approaching underwater territory as Bitcoin trades at $84,171.85, down 33% from recent highs. The company's average acquisition cost of $74,433 per coin leaves an 11% buffer before paper losses materialize. MSTR shares have declined 56% over six months, while the company faces $5 billion in convertible bonds due in 2028.

Changpeng Zhao, founder of cryptocurrency exchange Binance, has been pardoned by President Donald Trump after serving nearly four months in prison for anti-money laundering violations. The decision has drawn criticism over potential conflicts of interest, with critics pointing to a $2 billion investment in a Trump-linked stablecoin by a fund connected to Binance. White House officials defended the pardon as correcting what they characterized as excessive regulatory enforcement by the previous administration.