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Trump's big crypto move
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Bitcoin surges following 50 bps Fed rate cut, but recession concerns remain
Key points:
Bitcoin surged following the Fed's rate cut.
Short BTC positions were liquidated, leading to a short squeeze.
News - Bitcoin surged following the United States Federal Reserve's unexpected 0.5% interest rate cut, reaching local highs of $62,600. The move was the first time in over two decades that a rate-cutting cycle began with such a significant reduction.
The rate cut triggered a short squeeze, leading to the liquidation of $128 million worth of short BTC positions in the past 24 hours. However, analysts cautioned investors against excessive leverage and advised taking profits to avoid potential losses.
Key resistance levels - Despite the positive momentum, Bitcoin's price remains below a key resistance level of $65,000, and a breakdown below $62,500 could signal a potential reversal.
The US dollar index experienced volatility, initially rising but later retracting to previous support levels. The Bank of Japan's upcoming interest rate decision could also impact Bitcoin's price, as the strength of the yen could influence market sentiment.
While the rate cut has provided a short-term boost, analysts remain cautious about the long-term implications. Historical data suggests that rate-cutting cycles beginning with a 0.5% reduction often lead to market declines. The Fed's optimistic outlook on the economy seems inconsistent with the aggressive nature of its policy actions.
Cardano's Hoskinson to discuss blockchain's future with Argentina's president
Key points:
Charles Hoskinson will meet President Javier Milei on 19 October to discuss blockchain.
The meeting will focus on blockchain's impact on Argentina's economy and potential CBDC development.
News - Charles Hoskinson, the founder of Cardano, is set to meet with Argentina's President Javier Milei in October to explore the future of the cryptocurrency landscape.
Scheduled for 19 October during the Tech Forum Argentina, Hoskinson aims to discuss blockchain’s transformative potential for global economies, politics, and societies.
What’s more? In this anticipated meeting, he plans to address the needs and values of Argentina concerning technology, including the possibility of establishing a central bank digital currency (CBDC) and identifying potential partners to revitalize the economy.
Referring to Milei as an "Austrian," Hoskinson highlighted the president's alignment with cryptocurrency principles, emphasizing Milei’s desire to move away from government-controlled currency in favor of private institutions and free markets.
He remarked on Cardano's longstanding relationship with Argentina, which has been receptive to the blockchain network.
In addition to Cardano’s efforts, Hoskinson acknowledged Bitcoin’s historical presence in the country, citing early developments like BitPay’s wallet, Copay.
APAC region leads the way in blockchain adoption, but challenges persist
Key points:
Blockchain technology is expected to reach small and medium-sized enterprises in the APAC region.
The region benefits from proactive regulatory support, particularly from Singapore and Japan.
News - As blockchain technology gains traction among larger institutions in the Asia-Pacific (APAC) region, an executive from Blockdaemon predicts its forthcoming expansion into small and medium-sized enterprises (SMEs).
Andrew Vranjes, Blockdaemon’s head of international and vice president, shared insights, emphasizing that as blockchain solutions mature and become more scalable, they will increasingly benefit SMEs that are essential to the APAC supply chain.
More details - Vranjes noted that the APAC region has been proactive in supporting blockchain through favorable regulations.
According to a recent study by Henley & Partners, Singapore ranks highest in crypto adoption, thanks to its robust regulations and infrastructure. Meanwhile, Japan is working to enhance its Web3 sector by implementing tax reforms designed to attract startups and developers.
Despite growing interest from institutions, Vranjes identified challenges that hinder blockchain adoption, including unclear tax regulations regarding digital assets and the lack of uniform regulations across different jurisdictions. These complexities arise from the decentralized nature of blockchain and the evolving regulatory environment.
Donald Trump makes history as the first former president to use Bitcoin
Key points:
Donald Trump became the first former US president to use Bitcoin in a transaction.
He purchased hamburgers at a NYC bar that accepts cryptocurrency.
News - Donald Trump, the Republican Party’s presidential nominee, made headlines by appearing at a New York City bar renowned for accepting Bitcoin, marking him as the first former US president to use cryptocurrency in a purchase.
On 18 September, Trump bought hamburgers using Bitcoin at the establishment. Among the attendees was Bitcoin advocate and CEO of Professional Capital Management, Anthony Pompliano, who also shared the event on Trump’s Truth Social platform.
This appearance came shortly after Trump unveiled a new token linked to the World Liberty Financial crypto platform, operated by his family members.
Although he previously dismissed Bitcoin as a “scam,” he has shifted his stance to support BTC miners in his 2024 campaign, even speaking at the Bitcoin 2024 conference in Nashville.
Reports suggest Trump holds at least $1 million in cryptocurrency. As Trump aims for New York’s electoral votes, recent polling shows him trailing Vice President Kamala Harris, who has yet to incorporate crypto into her campaign.
More stories from the crypto ecosystem
Interesting facts
Over 21,000 cryptocurrencies have entered the market since Bitcoin’s debut back in 2009.
Back in 2014, Dogecoin’s community raised over $55K in an effort to sponsor NASCAR driver Josh Wise.
In the United States, people making over $100,000 annually constitute over 25% of all crypto-holders, but only 15% of the general population.
Top 3 coins of the day
Ethereum (ETH)
Key points:
At press time, ETH was trading at $2,427.
It was up 5% over the last day.
What you should know - The Ethereum chart displayed above shows a descending triangle pattern that ETH has been respecting for some time. A breakout from the pattern has occurred as ETH rose above the resistance trendline around the $2,428 mark. This breakout could signify a bullish reversal, especially given the accompanying increase in trading volume and positive momentum. The Moving Average Convergence Divergence shows a transition toward bullishness, with a potential cross of the signal line. The RSI currently sits near 49, suggesting neutral momentum but hinting at potential upward movement. If ETH sustains this breakout, the next resistance could be seen around the $2,600 mark. However, a drop below $2,200 would invalidate the breakout and signal further downside.
Solana (SOL)
Key points:
SOL has seen a dominance of buyers in the short-term.
It increased by 10.71% over the last day.
What you should know - SOL shows a strong recovery from its support zone around $125, with a breakout above the descending resistance trendline near $141. This move indicates a potential shift toward bullish momentum. The 5.16% price gain is supported by increasing trading volume, which adds strength to the breakout. Additionally, the MACD indicator shows a bullish crossover, with the MACD line moving above the signal line, suggesting further upward momentum. If SOL can maintain this breakout, the next resistance levels to watch are around $150 and $160. However, if the price falls back into the $125 support zone, it could indicate continued consolidation. Traders should monitor this zone closely to confirm whether the bullish breakout holds or reverses.
Avalanche (AVAX)
Key points:
AVAX’s value increased by over 15% over the last day.
It was trading at $26.30, at press time.
What you should know - Avalanche is showing a notable recovery after breaking out of a long-standing descending channel, with a current price of $26.27, marking a 6.44% increase. The breakout suggests a potential reversal of the prior downtrend, supported by increased volume. The Bollinger Bands indicate a period of compression, which typically precedes a sharp price move. AVAX is now pushing toward the upper band, which may signal increased volatility ahead. The Choppiness Index (CHOP) is relatively low, indicating a trending market rather than consolidation, which aligns with the bullish breakout. Additionally, if AVAX can maintain support above $24.70, the next resistance level at $28 could be tested soon. A close above $28 could open doors for further upward momentum, while falling back into the $24 zone may signal further consolidation.
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