The FED's first interest rate cut triggers a new era!

Thought of the week

As expected by many market participants, the US Federal Reserve (FED) has cut key interest rates by 0.5%, heralding a new “era” in which capital will tend to become “cheaper” again. This could create long-term positivity in the markets if economic conditions remain optimistic.

Digital Asset News

Bitcoin has outperformed almost all other asset classes over the last 12 months, but the leading cryptocurrency’s recent run has still “spooked” some investors, according to asset management firm VanEck.
In fact, the Bitcoin price is up a whopping 124% compared to September 2023 and has also noticeably expanded its relative market dominance on the crypto market. The market capitalization of BTC currently amounts to just under USD 1.25 trillion. US dollars, which corresponds to a market share of 56 % and marks a whopping 15 % increase compared to the previous year.
And VanEck assumes that this “long-term upward trend” will continue unabated in the near future, as “the adoption of Bitcoin as an investment product is no longer being driven solely by the same forces as in 2023”.he “rise in value [of Bitcoin[ this year can be better explained by its increasing adoption as money or as a store of value and means of transaction”, as VanEck summarizes.
The driving force behind this development is the approval of the first American Bitcoin index funds (ETFs), which were waved through by the US Securities and Exchange Commission (SEC) in January. According to Morningstar data, the new crypto investment products have now raised almost USD 55 billion.
The United States is still lagging far behind when it comes to cryptocurrencies, and despite recent hopes, the upcoming presidential election won’t change that in the short term, according to Fiona Murray, managing director of Ripple Asia Pacific.

Speaking to Cointelegraph at Token2049 in Singapore, Murray explained that the majority of innovation in Ripple’s business takes place in Singapore, not the US. She emphasized that a “lack of open-mindedness” has driven many crypto founders to Asia and other countries in search of a level playing field.
The Ripple executive believes that the APAC region has created a “stable environment” with a good infrastructure that allows for healthy development for the crypto industry.
“The banking partners in Singapore, like DBS, are really at the forefront, and they have been encouraged by the regulators to work with responsible web3 companies,” she said. “So it’s not just about regulation,” Murray said, referring to DBS Bank, the largest bank in Southeast Asia.
“You also need a supportive banking system and, beyond that, the infrastructure, the necessary rails and the organization in general. “So the US is way behind at the moment, but it could catch up,” she added.
Donald Trump, meanwhile, may have even become the first former US president to buy a burger with Bitcoin, while Democrats are also slowly warming to cryptocurrencies, but Murray still doubts that the upcoming election will bring a quick fix for the US crypto industry.

Digital Asset Market

Market report including trading idea

The majority of digital assets experienced a week that once again produced positive price movements, giving September an unexpected boost. The positive outlook was bolstered by the interest rate cuts in the US and Jerome Powell’s dovish speech led to a long-term view that radiated hope for positivity. As a result, almost all assets were able to record gains and continue a positive consolidation over the weekend.
The message for the coming week is that if current levels can be maintained, further upturns are likely to follow by the beginning of October at the latest.

Chart technology

From a chart perspective, Bitcoin is now above half of the support zone of $60,000 and has been able to break away significantly. The price zone in which Bitcoin is currently ~$63,000 – ~$64,000 served as a consolidation zone and now as a starting point for the coming week. If the interest rate decision does not trigger any “price fantasies”, there could be a slight setback, followed by $60,000 holding as support again to underpin the positive trend.
Should further positivity follow, volatile and strong upswings could be the result.

The next price targets in the event of a positive trend: ~$65,000, ~$67,500, ~$69,000

The next price targets in the event of a negative development: ~$61,000, ~$59,500 ~$57,000

Trading idea

If the positive trend continues, altcoins, which have risen little in relation to Bitcoin, could represent an interesting investment.