Key Points
- The crypto market responded positively to the first Fed rate cut in four years, with Bitcoin and Ethereum seeing gains.
- Former US President Trump made a transaction using Bitcoin, and Wisdom Tree launched an RWA tokenization platform on Ethereum.
The crypto market experienced a positive reaction following the first Fed rate cut in four years.
On September 18, the U.S. Fed reduced interest rates by 0.50% (50 basis points), a move that surprised many economists who had anticipated a 25 bps cut.
Bitcoin and Ethereum Gain
After the Fed’s decision, 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, Donald Trump, the former US president, visited the well-known New York PubKey bar 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 an RWA (real-world asset) tokenization platform that operates on Ethereum.
The product, named Wisdom Tree Connect, will facilitate integration between TradFi and 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.
