BTC gains as investors await Fed rate cut decision

Hola folks!

Welcome back to our weekly update on the global crypto market. The past week provided a breather for crypto investors as BTC gained over 7% in the past 7 days to briefly cross its resistance of $60,000 over the weekend. 

The crypto market seems to have factored in a 50 basis points rate cut by the Fed in its meeting this week. The movements in the crypto market this week will track rate-related decisions by both the US Fed and the Bank of Japan. 

The rate cut developments can make the week exciting for crypto traders and investors alike.

Bitcoin surged over 7% last week, testing the $56,000 support level and briefly trading near $60,000 over the weekend before retreating to $58,000 levels amid low volumes and an assassination attempt on Donald Trump. 

A fascinating stat from last week: spot Bitcoin ETFs purchased 6,892 BTC, while miners only produced 2,250 BTC, highlighting robust institutional demand. Interestingly, Bitcoin's price movements are mirroring US stock indexes, which had their best-performing week of 2024. 

The market had priced in a 50 BPS (0.5%) rate cut by the Fed though it’s essential to remember the market adage, "Buy the rumor, sell the news," as the market often anticipates and reacts before official announcements. 

MicroStrategy's recent acquisition of 18,300 BTC, bringing its total to 244,800 BTC valued at $14 billion, further solidified Bitcoin's institutional appeal.

Ethereum saw its ETH/BTC ratio fall below 0.04, approaching 3.5-year lows, with a possible further drop to 0.0350. However, Ether ETFs saw modest inflows of $1.5 million, signaling investor interest. Meanwhile, the gold market hit an all-time high, suggesting traders are positioning for the expected 50 bps rate cut by the Fed. 

Coinbase’s launch of cbBTC now allows millions of BTC holders to access DeFi apps on Base and Ethereum, expanding opportunities for Bitcoin in decentralized finance. 

Binance issued a warning to its users about a rise in “Clipper malware” attacks that steal crypto funds by intercepting and altering wallet addresses. Binance has taken measures to protect users, encouraging them to verify withdrawal addresses and stay updated on security advisories.

The week ahead promises excitement with the Fed and Bank of Japan decisions, alongside major crypto events like Solana’s Breakpoint and Token2049 in Singapore. 

Grayscale’s launch of the XRP Trust and Sui Trust continues to capture investor attention, with Sui performing strongly, up 17% last week. These events could lead to fresh announcements and roadmaps, potentially driving market momentum. While traders should stay cautious, the overall sentiment leans toward optimism, with Bitcoin poised for further upside and altcoins likely to follow suit.

• BTC $59,015 ⏫ 6.52%

• SUI $1.12 ⏫ 21.41%

• XRP $0.5734 ⏫ 7.55%

(All data here is as of 2.46 p.m., 16 September 2024)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Crypto fund manager Grayscale is launching an XRP Trust that could pave the way for a spot XRP exchange-traded fund (ETF) in the US. The closed-end fund will offer accredited investors direct exposure to XRP. Read more here. 

• Circle has partnered with Sony Block Solutions Labs to expand USDC adoption on Soneium, Sony’s Ethereum layer-2 blockchain. The move integrates Circle’s Bridged USDC Standard, making USDC a primary token for transactions on Soneium. Read more here.

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

Loving the newsletter? Make sure to spread the love and hit share!