Bitcoin Price Stays Strong Above $58K as Chances of Significant Fed Rate Decreases Rise to 67%
Bitcoin’s price has remained relatively stable around $58,480, with minor fluctuations seen in other cryptocurrencies like XRP, SUI, and FTM.
Market participants are eagerly awaiting the Federal Reserve’s upcoming meeting on September 18, where a potential interest rate cut is anticipated. This move is expected to have a positive impact on risk assets, with a 67% likelihood of a 50 basis points rate reduction.
World Liberty Financial, a project associated with former President Donald Trump, has introduced a governance token exclusively designed for accredited U.S. investors.
The cryptocurrency market, including Bitcoin (BTC) and other digital assets, has shown little change over the past 24 hours as traders brace for the Federal Open Market Committee’s meeting on Wednesday. This meeting could mark the first rate cuts by the officials in four years.
Bitcoin is currently trading just below $58,500 at $58,480, exhibiting a relatively flat trend. The CoinDesk 20 (CD20), a metric tracking major digital assets, has experienced a slight increase, trading above 1,800.
Inflows into bitcoin exchange-traded funds (ETFs) totaled $12.9 million, with a significant portion directed towards BlackRock’s IBIT.
The Federal Reserve is widely expected to announce an interest rate cut on September 18, initiating an easing cycle historically supportive of risk assets like bitcoin.
The 30-Day Fed Funds futures prices indicate a 67% probability of a substantial 50 basis points rate cut to the 4.7%-5% range, reflecting an increase from previous probabilities.
Traders on Polymarket are predicting a 57% chance of a 50+ basis points decrease and a 41% chance of a 25 basis points decrease in interest rates.
Market conditions have remained relatively stable, with notable performers such as XRP rising by 3.5%, SUI by 2.5%, and Fantom’s FTM soaring by 10.5% due to positive market sentiment surrounding its upcoming rebranding to Sonic.
World Liberty Financial unveiled plans for a governance token tailored for accredited U.S. investors during a livestream. Former President Trump did not directly endorse the token but shared his general views on crypto policy during the event.
Figure Markets has launched a crypto exchange with a unique feature of real estate-backed yield generation for users holding their crypto assets on the platform.
By leveraging a fund supported by real-world assets like home equity loans, Figure Markets aims to offer returns of up to 8% for non-USD and stablecoin balances.
The platform pools deposited funds, which are then lent to Figure Technologies for issuing secured home equity loans. Investors benefit from dual recourse protections, daily liquidity, and interest payments based on their investment duration.
While Real World Assets (RWAs) are gaining traction in the crypto space, few platforms are exploring ways to derive yield from them to fund their operations.
In 2023, Figure’s founder, Mike Cagney, withdrew the company’s bid for a U.S. federal bank charter and shifted focus to partnerships with established banks, leading to the development of the Figure Markets exchange.
