This week in crypto, Bitcoin experienced fluctuations amid the Fed’s rate cut and renewed market optimism. Donald Trump made headlines with his Bitcoin purchase, and Elon Musk faced potential SEC sanctions over his Twitter acquisition. Let’s take a look at last week’s crypto news.
Fed Cuts Rates
On September 18, the Federal Reserve cut interest rates by 50 basis points, as expected. Initially, the market reacted positively, with Bitcoin briefly rising above $64,000 (€57,500). However, the enthusiasm faded after the Fed’s report hinted at fewer rate cuts in the next two years than anticipated, as Jerome Powell, the Fed Chair, mentioned that future cuts would depend on how the economy performs. Some believe the move may be politically motivated, with implications for both traditional and crypto markets. Analysts are now waiting for upcoming economic data to gauge the Fed’s next steps.
Bitcoin’s Bumpy Week and Optimistic Outlook
Bitcoin experienced significant price swings this week, initially dropping below €54,000 after the Fed’s rate cut announcement. Later, however, positive reactions from the Asian markets helped Bitcoin recover to over €56,000, reflecting a renewed sense of optimism. Historically, September has been a challenging month for Bitcoin due to lower market liquidity, but many investors are looking forward to October, known as “Uptober” for its typically positive market trends. With the U.S. elections approaching and a Bitcoin halving already behind us, some analysts believe that history could repeat itself with a strong bull run.
U.S. Elections and Crypto
In a surprising move, Donald Trump used Bitcoin to buy burgers at a New York bar, becoming the first former U.S. president to make a Bitcoin transaction. This event took place shortly after Trump announced a new token through a crypto platform run by his family. Meanwhile, Kamala Harris is receiving substantial financial support from Wall Street and Silicon Valley, creating contrasting crypto approaches between the candidates as the 2024 election heats up. These developments highlight the growing influence of crypto in U.S. politics.
Elon Musk Faces Potential SEC Sanctions
Elon Musk is under scrutiny by the SEC for not appearing for a court-ordered testimony regarding his acquisition of Twitter, now known as X. The SEC is investigating whether Musk followed securities laws during the purchase. His legal team argues that he rescheduled the testimony for October, calling the potential sanctions unnecessary. This development adds to Musk’s ongoing tensions with regulators and the SEC, over potential violations of securities laws during his purchase of Twitter stock.
OpenSea Faces Class-Action Lawsuit
OpenSea, the popular NFT marketplace, is facing a class-action lawsuit accusing it of selling unregistered securities. The lawsuit claims that certain NFTs, including Bored Ape Yacht Club, were marketed as investment opportunities, misleading buyers and violating securities laws. This legal action of two users, follows a Wells notice issued by the SEC, indicating potential legal trouble ahead for OpenSea. The plaintiffs are seeking damages for losses and claim that OpenSea’s actions have hurt investors.
From Bitcoin’s price recovery and political involvement to legal battles in the crypto industry, this week has been eventful. As the market adapts to these changes, long-term optimism remains, with October expected to bring more opportunities. Stay tuned as we continue to track these developments and their impact on the crypto landscape. If you missed last week’s crypto news, be sure to check it out and stay updated on the latest trends.
