Bitcoin Trades at $58,480 as Markets Await Fed Decision - Blockonomi
by Oliver Dale · BlockonomiTLDR:
- Bitcoin price dropped 2.7% in 24 hours, trading around $58,480
- Federal Reserve expected to announce first rate cuts in 4 years
- 67% probability of a 50 basis point rate cut, up from 25% a month ago
- Trump-associated project World Liberty Financial launching governance token
- Figure Markets launching exchange offering yields backed by real estate assets
The cryptocurrency market is experiencing subtle shifts as anticipation builds for the Federal Reserve’s upcoming decision on interest rates. Bitcoin, the leading digital currency, has seen a slight decline in value, dropping 2.7% over the past 24 hours to trade at approximately $58,480.
This movement comes as the financial world eagerly awaits the Federal Open Market Committee (FOMC) meeting scheduled for September 18, where officials are expected to announce the first interest rate cuts in four years.
Market indicators suggest a growing likelihood of significant rate reductions. The 30-Day Fed Funds futures prices now show a 67% probability of a substantial 50 basis point rate cut, bringing the target range to 4.7%-5%.
This marks a notable increase from the 25% probability observed just a month ago. On the prediction market Polymarket, traders are giving a 57% chance of a 50+ basis point decrease and a 41% chance of a 25 basis point reduction.
The potential rate cuts are being closely watched by cryptocurrency enthusiasts and traditional investors alike. Historically, easing monetary policy has been supportive of risk assets, including cryptocurrencies. However, the market’s reaction to the anticipated cuts remains uncertain, with some experts suggesting that the impact on risk-on assets might not follow traditional patterns this time.
While Bitcoin’s price has dipped, other cryptocurrencies in the market have shown mixed performance.
The CoinDesk 20 (CD20), a measure of the largest digital assets, has seen a slight uptick, trading above 1,800. Notable movements include XRP rising by 3.5%, SUI increasing by 2.5%, and Fantom’s FTM surging 10.5% amid positive sentiment surrounding its upcoming rebranding to Sonic.
In related news, World Liberty Financial, a project associated with former President Donald Trump, has announced plans to launch a governance token. The token will be available exclusively to accredited U.S. investors, with the team emphasizing its purpose for governance participation rather than economic gain. The specific launch date for the token has not been disclosed.
As the market awaits the Federal Reserve’s decision, daily inflows into Bitcoin exchange-traded funds (ETFs) have remained steady, with $12.9 million flowing in, primarily to BlackRock’s IBIT.
This continued interest in Bitcoin ETFs suggests ongoing institutional appetite for cryptocurrency exposure through traditional financial instruments.