Bitcoin and Ethereum Prices Drop Amidst Trump Assassination Attempt and Interest Rate Decision
The cryptocurrency market experienced notable declines as both Bitcoin and Ethereum saw drops following a second assassination attempt on former U.S. President Donald Trump over the weekend.
As of the latest update, Bitcoin (BTC) has decreased by 2.1% to $58,950 levels, while Ethereum (ETH) has fallen by approximately 4.2% to $2,315 levels during Monday’s European trading session.
The incident involving firearms took place at the Trump International Golf Club in Florida, where Secret Service personnel fired shots upon spotting a rifle barrel protruding from a bush on the golf course. Subsequently, a suspect was apprehended. The FBI is actively investigating the matter, introducing geopolitical uncertainty into an already volatile market atmosphere.
Amid expectations surrounding an impending crucial monetary policy announcement by the U.S. Federal Reserve later this week, a recent report by Bernstein emphasized the importance of revitalizing decentralized finance (DeFi) lending markets on the Ethereum mainnet.
Bernstein’s analysts suggested that the rejuvenation of DeFi lending markets on Ethereum could attract significant interest from large investors and institutions, potentially aiding in reversing Ethereum’s underperformance relative to Bitcoin.
According to the analysts, Ethereum’s growth is primarily fueled by the utilization of its network, with DeFi markets representing the largest use case on the Ethereum platform.
Recent data from SoSo Value as of September 13 indicated a resurgence in institutional interest in cryptocurrency exchange-traded funds (ETFs), particularly those related to Bitcoin products. Fidelity’s Bitcoin ETF (FBTC) observed inflows of $102.09 million, while Grayscale’s Bitcoin Trust (GBTC) recorded $6.66 million in inflows. In contrast, Ethereum-related ETFs showed mixed results, with Grayscale’s Ethereum Trust (ETHE) experiencing a $7.36 million outflow, while Blackrock’s Ethereum Trust (ETHA) saw a net inflow of $3.67 million.
The cryptocurrency market is gearing up for a pivotal week ahead as the third quarter draws to a close. The Federal Reserve’s interest rate decision scheduled for Wednesday is highly anticipated, with market participants divided over the possibility of a 25 or 50 basis point rate cut.
Other significant events to watch include the Bank of Japan’s upcoming meeting following a recent hike in borrowing costs, U.S. initial jobless claims data release on Thursday, and the U.K. Bank of England rate decision also set for Thursday.
Avinash Shekhar, Co-Founder and CEO of Pi42, highlighted the impact of investor uncertainty stemming from the recent Trump incident on Bitcoin’s 3% decline, leading to over $116 million in liquidations. All eyes are now on the Federal Reserve’s imminent interest rate decision.
