Crypto news from around the web for 9/25/2024
BTC Surges: Bitcoin (BTC) experienced a significant surge following the Federal Reserve’s decision to cut interest rates by half a percentage point. The move boosted various markets, including crypto, sending BTC prices close to August highs. Analysts are now speculating on the potential implications of this rate cut and other economic factors on future price movements.
Derivative Markets Indicate Bullish Sentiment: Derivative markets suggest that many traders are anticipating further price increases, according to the founder of DeFi derivatives protocol Derive. However, some analysts remain cautious, predicting potential dips before another upward climb. Bitfinex has highlighted $65,200 as a crucial price level to watch for a potential breakout.
SEC Approves BTC Options Trading: The U.S. Securities and Exchange Commission (SEC) has given the Nasdaq the greenlight to list and trade options for BlackRock’s spot BTC ETF (IBIT). Analysts are divided on the potential impact of this move on BTC prices. While some believe it could drive volatility through leveraged trading strategies, others suggest it might reduce volatility in the long term as traders learn to use options for risk management.
BlackRock’s Report Highlights BTC’s Mainstream Adoption: A new whitepaper from BlackRock delves into BTC’s growing mainstream acceptance, highlighting its potential as a diversifier for portfolios and its role as a “flight to safety” in uncertain times.
ETH Rebounds: Ethereum (ETH) has seen a significant rebound following the Fed rate cut, outperforming BTC and other major tokens. The Ethereum blockchain has also experienced growth in trade volume, wallet usage, and total value locked. Despite this rally, spot ETH ETFs saw their worst day of outflows since July, primarily due to outflows from Grayscale’s ETHE product.
Strong Correlation Between Stocks and Crypto: The recent rate cut has increased the correlation between stock and crypto markets. Analysts suggest that both markets are primarily driven by macroeconomic forces, particularly the U.S. central bank’s monetary policy. The Fed’s upcoming comments on consumer spending will be closely watched for clues about potential future rate cuts.
