Weekly Crypto News 16-20 September 2024: The Fed Cuts Interest Rates and the Impact on the Crypto Market

Bittime -  Get complete updates regarding the impact of the Fed's interest rate cuts on the crypto market on September 16-20 2024. 

See how Bitcoin and Ethereum prices are soaring, as well as various collaboration projects and the latest developments in the crypto ecosystem!

Changes of Further Interest Rate Cuts

According to data from CME's Fed Watch, the chance that the Fed will cut interest rates again in November by 25 basis points reached 60.9%. 

Meanwhile, the chance of a 50 basis point cut is at 39.1%. Additionally, for December, the probability of a cumulative interest rate cut of 50 basis points was recorded at 29.0%, with the chance of a cut of 75 basis points standing at 50.5%. 

In fact, there is a possibility of a decline of 100 basis points which is estimated at 20.5%.

Impact on Crypto Markets

The digital asset market changed greatly after this interest rate cut announcement. Since trading around $59,000, Bitcoin has risen to more than $62,000. 

Ethereum also rose drastically from $2,200 to over $2,400. This shows how closely linked the digital asset market and global monetary policy are.

Lower interest rate policies often encourage investors to look for assets with higher return potential, such as cryptocurrencies. 

With lower interest rates, borrowing costs fall, which could fuel more speculative investment, including in the crypto market. 

However, on the other hand, high volatility remains a major concern, especially for investors who are new to the fast dynamics of this digital market.

Prediction in The Long Term

This interest rate cut may be a prelude to broader monetary policy easing by the Federal Reserve. 

If interest rates continue to be cut, more money will flow into the crypto market, increasing demand for major digital assets such as Bitcoin and Ethereum. 

Investors will also be closely watching these policy changes, as any signal of another rate cut could have a major impact on long-term trends.

With crypto market volatility continuing, it is important for market players to remain alert to changes in global economic policy in the coming months.

Read Also: Hamster Kombat Mini Game September 22, Follow the Tutorial!

Collaborations Project in The Ecosystem This Week

This week, the crypto ecosystem is also busy with collaborative projects. Among them:

• Pyth launched an improved version of Pyth Oracle Integrity Staking, introducing on-chain staking reward and penalty mechanisms.

• Arthur Hayes: Reduced PENDLE holdings to fund special circumstances.

• CATIZEN officially announced new ecological application products Air War and Merge Restaurant to further enhance entertainment interactivity.

Other Crypto Update

Apart from the information above, there are several other updates, namely:

• Musk: US government spending will bankrupt the country.

• QCP Capital: Bitcoin options front-end volatility fell 6%, and the market may take a breather.

• Musk does not testify in the Twitter acquisition probe, the US SEC may impose sanctions.

• Bitcoin's market share has increased 6% so far this year.

• HackQuest will launch the Solana Founders Fellowship Program with Solar and the Solana Foundation.

• Solana lending protocol Kamino is expected to launch leveraged spot trading in the coming weeks.

• Open interest in Bitcoin contracts across the network fell slightly to US$34.779 billion, a 24-hour decline of 1.49%.

• Mango Markets launches new spot exchange Fill City on Solana.

• The Solana Firedancer validator client is now live on mainnet.

• The market value of MEME coin DOGGO exceeded US$14 million overnight, due to a tweet from the founder of Dogecoin.

• APUS Network: TGE is planned for the fourth quarter, and 100% of APUS token supply will be distributed to the community.

• CESS Network Invited to Participate in DePIN Day on Capitol Hill.

• Parallel founders: Survival simulation game Colony plans to enter closed beta in early 2025.

• Coinbase plans to bring cbBTC to Solana.

• Meme Coin BONK plans to launch BONK ETP in the United States.

• “China's former richest man Zhao Changpeng to be released from prison soon” ranked among the top five searches on Baidu.

• Magic Eden CEO announced a new feature that allows users to trade assets across multiple chains.

• The Aave community calls for caution in response to the previous proposal to limit WBTC launched by LlamaRisk.

• Musk met with El Salvador's president but did not mention cryptocurrencies.

• Market News: Nvidia's CFO sold nearly $16 million worth of stock this week.

• Aave co-founder Stani Kulechov: Aave has not delisted wBTC, and the relevant controversial proposal is not a divestment proposal.

• Three Arrows Capital and Alameda Research continue to sell unlocked WLD.

• Hamster Kombat launched the pre-season warm-up game Interlude Season.

• The ether.fi foundation launched its third quarter ETHFI airdrop investigation, and applications will be open from September 23 to 27.

• USDC Treasury printed over 100 million USDC on September 21.

• Fed Harker: The Fed is doing a good job steering the economy.

• LayerZero: ZRO claim airdrop ended, unclaimed tokens will be redistributed.

• Harris: Working hard to have a second debate with Trump.

• Whales Market founders announced the launch of a GM compensation plan and will carry out buybacks and deliveries on-chain.

• Circle founders: advancing IPO plans.

• VanEck: Harris Presidency Could Be Better for Bitcoin.

• Do Kwon's extradition case returns to Montenegro's justice minister.

• Magic Eden: Optional royalty function will be enabled on the EVM chain.

• A US court dismissed Consensy's lawsuit against the SEC.

• The documentary "Vitalik: An Ethereum Story" will be available for 30 days on the on-chain streaming media ethereumfilm.xyz.

• Fed Governor Waller: If the job market worsens, they might consider another 50 basis point rate cut.

• Data: The Ethereum Foundation has sold a total of 3,466 ETH this year, equivalent to about US$9.67 million.

• BounceBit: Nash Equilibrium CeDeFi Ecosystem Fund Launches.

• Head of Research at Outlier Ventures: Speculation and DeFi will drive a surge in Ethereum network activity as market conditions improve.

• Polymesh: Equinox, a multi-chain bridge developed by ZenCrypto, will launch in the coming weeks.

• DWF Labs and GraFun enter into a strategic partnership.

• SBF's ex-girlfriend is scheduled to be sentenced on Sept. 24 with a maximum sentence of 110 years, but her attorney says she will probably be out of prison within a year.

• Cumberland received 97 million USDT from Tether and transferred it to CEX.

• MicroStrategy's Bitcoin holdings have gained over $5.9 billion.

• Vitalik: I don't have a pet dog, only a cat.

• Market News: MicroStrategy purchased 7,420 BTC from September 13 to 19.

• JP Morgan Chief Economist: The Fed is still expected to cut interest rates by 50 basis points at its next meeting.

Conclusion

That's the update on weekly crypto news 16-20 September 2024. For information on the crypto ecosystem next week, you can listen to the Bittime blog.

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