$63,000 Range... Expected Good News from US FOMC [Bitcoin Now]

Big Rate Cut by US Federal Reserve... Market Cheers
Trump Openly Promotes 'Family' Coin Platform
Crypto Industry "Harris Side Listens to Industry Opinions"

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed)
[Photo by AFP Yonhap News]

The Bitcoin market in the third week of September is showing a stable trend around the $63,000 level as of the 21st (Korean time). This is due to the U.S. Federal Reserve (Fed) implementing a 'big cut' (50 basis points interest rate cut) at the September Federal Open Market Committee (FOMC) meeting. Donald Trump, the U.S. Republican presidential candidate who has proclaimed himself a pro-crypto president and vowed to make the U.S. "the crypto capital of the planet," is simultaneously receiving both anticipation and concern as he openly promotes the crypto platform operated by his two sons.

According to the global crypto market tracking site CoinMarketCap, as of 8:18 PM on the 21st (Korean time), the price of Bitcoin is $63,102.53, up 0.76% from the previous day. Compared to a week ago, it has risen 5.49%, and compared to a month ago, it has increased by 3.06%. The year-over-year growth rate is 135.71%.

Bitcoin started at the $59,000 level on the 15th and, after some volatility on the 16th and 17th, successfully rebounded thanks to the positive impact of the FOMC's rate cut. The price showed a gradual upward movement before and after the FOMC meeting and rose further after the announcement. The FOMC held a two-day meeting starting on the 17th and decided to cut the benchmark interest rate by 50 basis points (bp, 0.01 percentage points) to 4.75?5.00%. This was the expected big cut by the market. However, Board member Bowman voted for a 25bp cut. The forecast is for two more rate cuts this year and four next year.

Political activity was also active. On the 16th (local time), candidate Trump promoted the crypto platform 'World Liberty Financial (WLFI),' jointly launched by his eldest son Trump Jr. and second son Eric, during an online meeting. WLFI plans to issue its own token and create a DeFi platform. General investors can borrow or invest in crypto assets on this platform. Conversely, the Trump family directly operating a profit-driven crypto business has raised concerns about conflicts of interest.

Regarding this, Hong Seong-wook, a researcher at NH Investment & Securities, said, "The digital asset industry is also expressing concerns about pursuing DeFi projects with unclear purposes, and the fact that they are collaborating with individuals from hacked projects is also a worry." He added, "Whether intentionally or unintentionally, if they fail, it will damage not only the Trump family but also the image of the digital asset industry."

Competing candidate Democratic nominee Kamala Harris is also expected to announce crypto-friendly policies. Vice President Harris has not yet announced specific crypto pledges, leading to market skepticism. According to a report by U.S. economic media CNBC on the 19th (local time), Anthony Scaramucci, founder of SkyBridge Capital, revealed at 'Token2049' that Vice President Harris is working with him and other crypto supporters to develop digital asset-related presidential policies. Scaramucci said, "Vice President Harris is listening to the opinions of crypto supporters" and is urging her to support crypto-friendly policies. He also added that a discussion between Vice President Harris and industry stakeholders is scheduled for this week.

The influence of the crypto industry in the U.S. presidential election is growing. CNBC reported on the 16th (local time) that individual and corporate donors from the crypto industry have contributed approximately $190 million (about 253.8 billion KRW) in political donations for the 2024 U.S. presidential election. Among individuals, the largest donors are the Winklevoss twins, founders of the Gemini exchange, who contributed about $10 million in total. The second largest donor is Brian Armstrong, founder of the crypto exchange Coinbase, who donated $1.3 million.

According to crypto data provider Alternative, as of this date, the Fear & Greed Index, which measures investor sentiment, stands at 54 points (neutral). This is the same rating as last week's 50 points (neutral). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating extreme optimism.