Weekly Crypto News: Bitcoin, Fed, Musk, And More

On September 18, the Federal Reserve cut interest rates by 50 basis points, as expected. Initially, the market reacted positively, with Bitcoin briefly rising above $64,000 (€57,500). However, the enthusiasm faded after the Fed's report hinted at fewer rate cuts in the next two years than anticipated, as Jerome Powell, the Fed Chair, mentioned that future cuts would depend on how the economy performs. Some believe the move may be politically motivated, with implications for both traditional and crypto markets. Analysts are now waiting for upcoming economic data to gauge the Fed's next steps.​

Bitcoin experienced significant price swings this week, initially dropping below €54,000 after the Fed’s rate cut announcement. Later, however, positive reactions from the Asian markets helped Bitcoin recover to over €56,000, reflecting a renewed sense of optimism. Historically, September has been a challenging month for Bitcoin due to lower market liquidity, but many investors are looking forward to October, known as "Uptober" for its typically positive market trends. With the U.S. elections approaching and a Bitcoin halving already behind us, some analysts believe that history could repeat itself with a strong bull run.

In a surprising move, Donald Trump used Bitcoin to buy burgers at a New York bar, becoming the first former U.S. president to make a Bitcoin transaction. This event took place shortly after Trump announced a new token through a crypto platform run by his family. Meanwhile, Kamala Harris is receiving substantial financial support from Wall Street and Silicon Valley, creating contrasting crypto approaches between the candidates as the 2024 election heats up. These developments highlight the growing influence of crypto in U.S. politics.

Elon Musk is under scrutiny by the SEC for not appearing for a court-ordered testimony regarding his acquisition of Twitter, now known as X. The SEC is investigating whether Musk followed securities laws during the purchase. His legal team argues that he rescheduled the testimony for October, calling the potential sanctions unnecessary. This development adds to Musk’s ongoing tensions with regulators and the SEC, over potential violations of securities laws during his purchase of Twitter stock.