The crypto market experienced a positive reaction following the first Federal Reserve rate cut in four years.
Bitcoin and Ethereum Gains
Following the Fed’s decision on September 18, Bitcoin (BTC) saw a 2.3% increase during the intraday trading session on Wednesday. The following day, during the early Asian hours, BTC’s value rose to $62.5K. At the time this article was written, BTC was worth $62.1K, with significant gains observed across the sector. Ethereum (ETH) had risen by 5% in the past 24 hours. However, experts have expressed caution, suggesting that the Fed’s significant cut may indicate a slowing economy that could unsettle risk assets in the short term.
Trump’s Bitcoin Transaction
On September 18, former US President Donald Trump visited the well-known New York bar PubKey and made a payment using BTC. He purchased food and drinks for his supporters and paid the bill in BTC. PubKey owner Thomas Pacchia referred to the event as 'history.' Trump, who has become a supporter of BTC, has even announced plans to make it a strategic reserve asset if he is re-elected as president.
Wisdom Tree’s Ethereum Platform
Wisdom Tree, an asset manager with $110 billion of assets under management, has introduced a real-world asset (RWA) tokenization platform that operates on Ethereum. The product, named Wisdom Tree Connect, will facilitate integration between traditional finance (TradFi) and decentralized finance (DeFi), according to the company. Wisdom Tree will join other asset managers such as BlackRock and Franklin Templeton, which offer similar products designed to provide yield-bearing products for crypto firms seeking exposure to US treasury bonds as a reserve.
The Fed's rate cut has led to positive changes in the cryptocurrency market, as evidenced by the rise in Bitcoin and Ethereum prices. Additionally, events like Donald Trump’s Bitcoin transaction and the launch of Wisdom Tree’s platform on Ethereum indicate ongoing interest and integration of cryptocurrencies in various sectors.
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