He Bitcoin It shoots up this Fridayexceeds US$63,000 and touches three-week highs, after the head of the United States Federal Reserve, Jerome Powell, announced that there will be a cut in interest rates, in a key decision for the global financial world.
The cryptocurrency with the highest market capitalization climbs 5% in the last 24 hours and reaches US$63,341minutes after reaching the US$63,508the highest level since the beginning of the month. At the same time, Ethereum rises 4.7% to $2,732, while Solana gains 4% to $148.82.
Powell announced the rate cut on Friday, speaking at the Federal Reserve’s annual Jackson Hole research conference in Kansas City.
“The time has come for monetary policy to tighten. The direction of travel is clear and the timing and magnitude of cuts will depend on incoming data, the development of the outlook and the balance of risks,” Powell said.
The market reaction was positive. The Dow Jones index rose by almost 1%, while the Nasdaq rose by 1.1%. In contrast, Treasury bonds suffered losses, given the certainty of a cut in yields. Although investors had discounted such a measure, the confirmation gives clarity to the market.
The Fed meeting where the update will be decided will be in September and now the uncertainty is whether the cut will be 0.25 or 0.5 points from the current range of 5.25-5.5%. Analysts have different opinions about what the Fed will decide since it depends on upcoming employment and inflation data in the United States.
The Week in Cryptocurrency: Strong Gains for Altcoins and 16 Years of Satoshi Nakamoto’s Email
This week ends on a positive note for cryptocurrencies with Bitcoinrecording an increase of almost 7% in the last seven days. Meanwhile, Ethereum It records a weekly rise of 4.3% and remains above US$2,700.
The surprise this week is on the side of the altcoins that are recording increases. Such is the case of Polygon (MATIC) which is on track to close the week above 32%. Cardano (ADA), meanwhile, is up almost 20% in recent days. Meanwhile, the so-called memecoin segment is also seeing strong gains. Shiba Inu (SHIB) climbs 13% for the week, but Pepe (PEPE) surprises and scores 19%. Meanwhile, DogeCoin (DOGE) is up 12.5% and closes the week in the green, Buenbit reported.
Satoshi Nakamoto, miners’ reserves and the US elections
In other industry news, Thursday marked the 16th anniversary of that email from Satoshi Nakamotothe enigmatic character credited with creating Bitcoin. It so happens that on August 22, 2008, Nakamoto initiated an email exchange with Wei Dai, the creator of b-money, and mentioned that he was about to release a paper that would expand Dai’s ideas into a fully-fledged, working system. At the time, the price of Bitcoin was $0, as the cryptocurrency had not yet been publicly launched. That month marked a pivotal moment in crypto history, laying the groundwork for the creation of Bitcoin and the financial revolution that would follow.
On the other hand, according to a recent report by CryptoQuantBitcoin reserves held by miners rose to their highest level in more than two years. This is key, as it could trigger declines in the price of Bitcoin. “Historical patterns suggest that when miner reserves reach significant levels, they often precede a crash in the cryptocurrency market,” the document notes.
According to the report, miner reserves on over-the-counter (OTC) trading desks have seen a massive increase, reaching a level not seen since June 2022. “Historically, increases in Bitcoin OTC trading desk balances have been associated with declines in Bitcoin prices,” CryptoQuant says.
As it happens week after week, the crypto industry continues to generate followers and revolutionize the system as it is traditionally known. So much so, that it is shaking the US elections by contributing a staggering US$119 millionpositioning itself as the main corporate donor of the electoral cycle.
To give you an idea, the study exemplifies that the influence of crypto companies in this year’s elections is second only to the fossil fuel industry, traditionally the largest contributor to various campaigns. Since the Supreme Court’s 2010 decision in the Citizens United case, which allowed unlimited corporate donations to political campaigns, crypto corporations have rapidly increased their spending, now accounting for 15% of all corporate contributions in the last three election cycles.
And in that electoral context, the week in crypto news closed with the promise of one of the candidates for president in the United States. It turns out that one of the top campaign advisors Kamala Harris said the Democrat is interested in clear regulations and policies that help boost the crypto ecosystem, All of this, of course, if she is elected in November. “Harris will support policies that ensure that emerging technologies and that type of industry can continue to grow,” said Brian Nelson, senior campaign adviser.
Source: Ambito
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