Bitcoin Surges to $59K as Traders Await 50-Bps Fed Rate Cut in First Mover Americas

The cryptocurrency market has seen various movements in the latest updates. Bitcoin (BTC) stands at $59,071.10 with a 0.46% increase. Ether (ETH) is at $2,310.05, showing a 0.23% rise. The S&P 500 is at 5,633.09, up by 0.13%, while gold is at $2,575.42, experiencing a 0.32% drop. The Nikkei 225 index is at 36,203.22, down by 1.03%.

Bitcoin’s price surged to $59,000 in the European morning, marking a 0.7% gain in the past 24 hours. The broader digital asset market, as per the CoinDesk 20 Index, saw an increase of just under 0.65%. Traders are closely watching the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, where officials are anticipated to announce the first interest-rate cut in four years. The 30-Day Fed Funds futures prices indicate a 65% chance of a 50 basis-point cut to the 4.7%-5% range, up from 50% just a day before and 25% a month ago.

BlackRock’s bitcoin ETF (IBIT) observed inflows of $15.8 million on Monday, breaking a three-week streak of no significant movements. U.S.-listed spot bitcoin ETFs collectively received net inflows of $12.9 million, with some funds gaining while Grayscale’s GBTC saw outflows of $20.75 million. IBIT, the largest of the 12 funds with assets totaling $20.92 billion, had minimal activity since August 26. The recent inflows may signal positive sentiment for BTC investors with the sector’s primary ETF showing renewed interest.

The World Liberty Financial crypto project, endorsed by Donald Trump, is set to introduce a governance token, WLFI, as revealed during a Spaces stream on X. The non-transferable WLFI token won’t confer any economic rights but is solely intended for governance participation. About 63% of the token will be available for public sale, 17% earmarked for user rewards, and 20% allocated to the team. The token will initially be offered to accredited investors under a Regulation D exemption from the SEC, allowing companies to raise capital without registering securities.

The Chart of the Day showcases the declining ETH/BTC price ratio, reaching its lowest level since April 2021. This trend indicates a preference for bitcoin over ether among investors, as evidenced by the significant inflows into BTC ETFs compared to outflows from ETH equivalents. Some traders interpret this shift as a broader market inclination towards bitcoin’s perceived stability over ether’s riskier, high-yield potential.

– Jamie Crawley

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