BTC near $63K
What's being bought and sold*
TOP TRENDING ASSETS
*Trading activity in the past 24 hours on the Uphold platform, as of 8 a.m. 19th September 2024.
The combined total of buy and sell percentages can exceed 100% due to customers who engage in both buying and selling the same asset within the 24-hour time frame.
Don’t invest in crypto unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.
What’s up
Fed Goes Big – And Crypto Rallies
The Federal Reserve yesterday cut interest rates by half a percentage point, prompting a U.S. stock market rally that reversed course within a mere couple of hours. Investors seem less awestruck and more dumbfounded about what it all means, i.e., whether the Fed sees some economic calamity lurking around the corner. The S&P 500 index closed down on the day.
Total crypto market capitalization as of late Wednesday night stood at $2.24 trillion. Most major coins were trending positively.
Bitcoin went south of $60K in the hours before the Fed decision to give markets an unusual (and yet not that surprising) 0.50% cut; afterwards, BTC shot up, retreated, bounced, and ultimately rallied, finding $62K by 10 p.m. (EST).
As of Thursday at 8:20 a.m. (EST), BTC momentum remained strong as it edged closer to the $63K mark.
Meanwhile, what a week for Fantom and Celestia, as the latter (TIA) had surged by 40% while the former (FTM) jumped 36%.
And, whoa, Sei (SEI), you startled us! The 70th-largest crypto spiked 20% in 24 hours in the midst of a social media blitz aimed at promoting a new Sei-native ETH staking instrument, seiyanETH.
What's down
Near-Term Consternation Sets In
The Fed's big rate cut rattled some investors. A traditional quarter-point move it was not.
Morningstar Wealth's CIO Philip Straehl said the decision to slash by the more aggressive half-point increment suggests the Fed considers inflation in check and can now shift focus to alleviating economic stress (by not keeping rates too high for too long).
Stocks sharply reversing course before the close yesterday suggested investors are worried about a slowdown.
What's next
Rate Reduction Likely Benefits BTC In Long Run
"We're not saying mission accomplished, or anything like that," said Fed Chair Jerome Powell, after lowering the central bank's overnight lending rate from 5.5% to 5.0% (at the high end). The jumbo cut struck markets like a way-too-strong afternoon martini, exhilarating at first but ultimately bewildering, although crypto seemed to just go with the flow as night fell.
Long-term projections for Bitcoin in a time of monetary easing? BTC probably benefits, per CoinShares' research chief James Butterfill.
Reduced borrowing costs should support BTC's spot price, especially if rates continue to steadily creep downward.
