Market Update 23rd September 2024
By Manoj Dharra
Bitcoin, the leading cryptocurrency by market capitalization, has climbed to a one-month peak of $64,661, generating considerable excitement in the market. This rise is likely linked to the recent dovish comments from the Federal Open Market Committee (FOMC), which indicated a potential 50 basis point interest rate cut, suggesting increased liquidity for assets like crypto. Meanwhile, the Japanese yen continues to weaken, pressured by ongoing economic policies.
In a positive turn, global crypto funds managed by firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares have experienced a resurgence, recording net inflows of $321 million last week, as reported by CoinShares. This follows two weeks of net outflows.
Currently, Bitcoin is trading at $63,515, up 1.4%. Analysts speculate that the recent interest rate cut could signal a broader trend, with expectations of a total decrease of up to 125 basis points by year-end. As Bitcoin’s upward momentum continues, the market watches closely to see if this growth can be sustained amid the yen’s ongoing struggles.
With U.S. fiscal debt nearing $35 trillion, Bitcoin is increasingly seen as a viable alternative asset. Analysts are drawing parallels between Bitcoin and gold, emphasizing Bitcoin’s potential to maintain value during periods of fiscal excess.
Diminished Selling Pressure
Concerns over major Bitcoin sell-offs are easing, contributing to a more stable market environment. With the completion of significant sell-offs by the German and U.S. governments and the absorption of $8 billion in Mt. Gox distributions, the market seems less vulnerable to large liquidation events.
On the Ethereum front, the picture is more nuanced. Strong inflows into new ETFs are being counterbalanced by outflows from older, higher-fee funds like Grayscale’s ETHE. Despite this, sentiment remains generally optimistic, with analysts from Bernstein anticipating new approvals from major financial institutions to rejuvenate the market.
Ethereum was trading at at $2,639 up 2% in the last 24 hours
Additionally, Vice President Kamala Harris’s recent support for digital assets stands in stark contrast to former President Trump’s proposed policies. Her commitment to balancing consumer protection with fostering crypto innovation was highlighted during a recent Wall Street fundraiser, reflecting a progressive stance on the industry.
You need to login in order to Like
