Fed Cuts Interest Rates by 50 Basis Points
The US Federal Reserve (Fed) has cut interest rates by 50 basis points, lowering the federal funds rate to between 4.75% and 5.00%. The price of Bitcoin has skyrocketed following this decision. The Fed noted that inflation is on track with its 2% target, but job gains are slowing and unemployment is rising slightly. While QCP Capital analysts expect market volatility to increase in the short term, they advise investors to focus on long-term investment strategies to take advantage of potential large Bitcoin price increases. Major stock indices such as the S&P 500 and Nasdaq Composite rose after the rate cut. The CBOE Volatility Index rose and gold prices rose by 0.6%.
Fintech Giant Revolut Reportedly Planning a Stablecoin
London-based fintech firm Revolut is planning to launch its own stablecoin. The company, which is valued at $45 billion and received a UK banking license in July, is well into the process of creating a stablecoin. A Revolut spokesperson said the firm is taking a compliance-focused approach to expand its crypto offering and serve as a safe haven for the entire crypto community. The stablecoin sector is a highly profitable and fast-growing sector led by Tether with a market cap of $119 billion. PayPal launched a stablecoin last year, while blockchain firms such as Ripple and BitGo are also planning to enter the space.
Trump Used Bitcoin to Make Payments
Republican presidential candidate Donald Trump purchased a cheeseburger using Bitcoin at PubKey Bar in New York City, calling it a “historic moment.” Trump made the purchase ahead of his campaign rally at Nassau Coliseum on Long Island. PubKey is known for being a Bitcoin-themed bar in New York’s Greenwich Village that hosts events for crypto enthusiasts. Trump changed his stance on cryptocurrencies this year when his campaign began accepting crypto donations, stating that he aims to make the U.S. the “crypto capital of the world.” He also helped promote a DeFi project his sons are working on called World Liberty Financial.
BitGo Unveils Stablecoin Called USDS
Palo Alto-based crypto custody firm BitGo has introduced USDS, a new stablecoin set to launch in January 2025. USDS will be fully backed by short-term treasuries, overnight repo transactions, and cash, and will aim to distribute 98% of earnings to network participants, including liquidity providers and institutional exchanges. BitGo plans to emphasize transparency with real-time proof of reserves and monthly third-party audits. The company is targeting $10 billion in assets in the stablecoin by the end of its first year. However, USDS will have to compete with USDT, which has a 75% market share, and other strong competitors.
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BITCOIN (BTC)
BTC is priced at $61,974 with a 0.35% gain as of the morning hours. There is a strong resistance zone at around 64,500 on the top and a support zone at 52,555 on the bottom. Green areas indicate buying demands. Particularly, the 60,900 – 59,300 resistance zone and the 57,500 – 57,400 support zone are noteworthy. The price broke the resistance zone of 60,900 – 59,300 and is trading at this level. The chart shows that the current price of BTC has broken through the resistance level. The new resistance is the $62,500 area.
ETHEREUM (ETH)
ETH is priced at $2410 with a 1.50% gain in value as of the morning hours. Resistance areas at 2853.03 and 2466.47 show that the price is having difficulty breaking these levels. Support areas are at 2168.07 and 2373.44, and the price has not fallen below these levels. Price movements on the chart fluctuate between support and resistance levels with high volatility.
RIPPLE (XRP)
XRP is priced at $0.5861 with a 0.15% loss in value as of the morning hours. On the 4-hour chart, the price failed to break the 0.5900 resistance level and was rejected from this level. The 0.5900 – 0.6100 resistance zone has shown its effect. In the current situation, there is a possibility that the price may pull back towards the 0.5150 support level. If the 0.5150 level is broken, the price may continue to fall to the 0.5150 – 0.5350 support zone.
AVALANCHE (AVAX)
AVAX is priced at $26.20 as of the morning hours, gaining 4.13% in value. On the 4-hour chart, the price has broken the 24.69 resistance level. The 24.00 – 25.00 range is now in support. In the current outlook, the price can be expected to fall to the 25 support level. If this level is broken, a deeper drop to the 21.88 USDT level and then to the 20.00 – 21.00 support zone can be seen.
SOLANA (SOL)
SOL is priced at $138.50 with a 4.15% gain as of the morning hours. On the 4-hour chart, the price is trying to hold just below the 134.00 resistance level. The price, which has retreated due to selling pressure from the 145.00 – 149.00 resistance area, is likely to retest the 131.00 support. If this support level is broken, the price may continue to fall towards the lower price area of 125.00 – 135.00.
OUNCE GOLD
The ounce of gold is priced at $2575 with a 0.62% increase in value as of the morning hours. In the 4-hour chart, ATH was refreshed. The 2600 level was seen. There was a pullback to $2548, but there is an increase. 2590 is a region that is likely to work as resistance. As support, $2560 seems appropriate.
OUNCE SILVER
Silver is priced at $30,916 with a 2.86% gain as of the morning hours. On the 4-hour chart, the price is trading just below the 31,057 resistance level and has reached the resistance area between 30,300 – 31,057. It is likely to encounter resistance at this level and pullback. In a possible pullback, the price is expected to fall towards the 30,300 and then 28,700 support levels. If the downtrend line is broken upwards, the rise will likely continue.
