Will the Fed’s Rate Cut Spark a Crypto Rally?

DAILY MARKET OVERVIEW
Rate Cuts and Recession Fears

👋 Hey Crypto Enthusiasts! With the Fed’s big rate decision happening tonight, there’s a lot to unpack so let’s jump right in!

Tonight’s FOMC rate decision has crypto and financial markets on edge, with many expecting a 50 basis point cut. The stakes couldn’t be higher as the Fed attempts to balance a slowing economy and labor market cracks, after aggressively hiking rates to fight inflation.

But the big question remains: will it be enough, or is it too little, too late?

• While rate cuts often signal a bullish surge for risk assets like crypto, this time might not deliver the instant rally some expect.

Macro strategist MacroAlf cautions that while rate cuts can boost markets, the effects might take longer to unfold compared to the 2019 pre-COVID era, where money printing flooded the system.

With the economy already showing signs of strain, we may not see the same quick spike in crypto prices this time around.

Adding to the uncertainty is the fact that inflation remains stubborn, with core CPI and PPI data from last week coming in higher than expected.

• Despite the Fed’s goal of reaching a 2% inflation target, inflation is still persistent in key areas like food and services. Cutting rates now could potentially fuel inflation again, putting the Fed in a difficult position.

• At the same time, the job market is showing signs of trouble, with rising unemployment and fewer job openings. If the Fed keeps rates too high for too long, it could accelerate the risk of a recession, which they’re keen to avoid.

With the world watching, tonight’s decision could have a big impact on markets, especially if it's seen as out of step with inflation management. The Fed’s ability to strike the right balance will be key, and the outcome could shape the future of both traditional and crypto markets in the coming months.

THIS NEWSLETTER IS BROUGHT TO YOU BY:
OPENWALLET

Next-level security for your digital assets

Experience top security with Open Wallet. Your wallet blends user-friendliness with strong security.

TWITTER SENTIMENT
Whale Buys a Mysterious New Altcoin 🐋 

In our recent X exploration, we came across an interesting project called Quilibrium, a project with the potential to impact the decentralized internet.

• Notably what caught our attention was that a large wallet recently purchased $1 million worth of Quilibrium tokens, suggesting growing interest from major players.

So, what’s Quilibrium? It’s a fresh attempt to create a decentralized internet where applications can run securely and permanently, without the risk of being censored or controlled by a central authority. Unlike traditional cloud services, which rely on trust, Quilibrium is built to protect privacy, ensure apps run as they should, and prevent censorship.

Quilibrium uses a peer-to-peer network, so no one knows what data they're processing or who’s asking for it. Developers can also easily build apps on top of this secure, private system. With talks already surrounding this project, it’s definitely one to keep an eye on!

That said, be cautious! Quilibrium doesn’t have a proven track record for its technology or team just yet. While the potential is exciting, it’s important to do your own research and tread carefully before making any investment decisions.

NEWS OVERVIEW
The Latest Crypto Headlines 📰 

Revolut Plans to Launch Its Own Stablecoin
Fintech giant Revolut is reportedly working on its own stablecoin, aiming to expand its crypto offerings and provide secure, accessible services for users.

Circle Expands USDC to Sui Blockchain
Circle is launching its USDC stablecoin on the Sui blockchain, marking its 15th network integration and enhancing cross-chain functionality for decentralized finance applications.

Bitget and Foresight Ventures Invest in TON Blockchain
Bitget and Foresight Ventures invested $30 million into The Open Network (TON) to boost development of Telegram-based projects, including popular tap-to-earn games.

Vitalik Buterin: Crypto’s Usability Has Greatly Improved
Vitalik Buterin highlighted Ethereum's enhanced usability at Token2049, emphasizing lower fees, improved user experiences, and the potential of blockchains as “digital concrete” for secure systems.

YOUTUBE INFLUENCER SUMMARY 📷️ 
Lark Davis - Crypto Holders This Is It! (Get Ready) (18.09.2024 Summary)

Lark’s message is clear: big changes are coming for crypto holders. He focuses on the upcoming U.S. Federal Reserve interest rate cuts, which could create significant volatility in the market, particularly for Bitcoin and altcoins. Whether the cut is 25 or 50 basis points, Lark advises caution for those using leverage, as quick price swings are likely.

• Lark then points to major players like MicroStrategy and Bhutan, both of which continue heavily investing in Bitcoin.

• These moves show growing confidence in Bitcoin’s long-term value, especially for smaller countries like Bhutan, where early adoption could lead to substantial wealth gains.

Turning to Bitcoin’s price, Lark highlights that it’s at a key resistance zone. While a breakout could spark a larger rally, he warns that if it’s driven by short-term news, such as the Fed’s decision, the rise might not last. Sustained momentum is crucial.

In summary, Lark is optimistic but urges caution. With major global shifts in play, it’s essential for investors to remain vigilant during this volatile period.

CryptosRUs - MAJOR Bitcoin Move In Next 24 Hours (18.09.2024 Summary)

George from CryptosRUs highlights the importance of the upcoming Federal Reserve (FOMC) meeting and its potential impact on Bitcoin. He notes that markets expect a 50 basis point interest rate cut, though opinions are mixed on whether this will be good or bad for the economy. Regardless, he anticipates significant volatility.

• George points out that institutions, ETFs, and countries like Bhutan and El Salvador are accumulating Bitcoin, reflecting growing confidence. Major players like BlackRock and MicroStrategy continue to buy, further supporting a long-term bullish outlook.

Historically, September is a weak month for Bitcoin, but George believes the FOMC decision could shift that, with Q4 traditionally being strong. He urges retail investors to focus on long-term strategies, like dollar-cost averaging (DCA) and holding, rather than reacting to short-term market swings.

At a recent networking event, George met industry leaders who are confident in crypto’s future, especially as they look toward 2025. He ends by encouraging investors to stay focused on the long-term potential of Bitcoin, despite any current market volatility.

CRYPTO MEMES

“The Crypto Bull Run So Far" 😂