In this week’s Mudrex Market Outlook, we examine the Fed’s latest interest rate cut and its ripple effects on Bitcoin, stocks, and the broader market. We’ll also cover Solana’s new Web3 smartphone, Donald Trump’s historic Bitcoin transaction, Kamala Harris’ stance on crypto, and the launch of USDC on the Sui network.
Dive in for the key updates moving the crypto space this week.
Fed Cuts Interest Rates by 50 Points, BTC Shoots to $61,000
The U.S. Federal Reserve recently cut interest rates by 50 basis points (0.5%), bringing them down to a range of 4.75%-5%. This is the first time in four years that the Fed has lowered rates after a long period of raising them. The decision caused some uncertainty in the market, making prices go up and down.
After the Fed’s announcement, Bitcoin rose to $61,000 but soon dropped below $60,000. Stocks in the U.S. also saw a quick boost but ended the day lower. Gold hit a new record high before falling back down, and the U.S. dollar’s value dipped but then recovered.
The Federal Reserve made this move because it believes inflation is slowly coming under control, but there are still risks in the economy. Fed members expect to cut rates again, with a goal of reaching 4.4% by the end of the year. Fed Chair Jerome Powell said the U.S. economy is in a good position, and unemployment rates are still healthy, so there’s no strong sign of a recession yet. However, Powell warned that the Fed’s future decisions will depend on the economy’s behavior.
This decision has had a major impact on the crypto market. Analysts say people are watching closely to see how much risk investors are willing to take.
Solana Mobile Unveils Seeker
Solana Mobile has officially introduced the Seeker, the successor to its first web3 smartphone, the Solana Saga.
- The Seeker features a 6.36-inch AMOLED display, 128GB of storage, and 8GB of RAM, providing users with ample space and performance for their apps and activities.
- The Seeker comes equipped with a Seed Vault wallet developed in partnership with Solflare. This wallet allows for secure cryptocurrency management directly on the device.
- An updated version of the Solana dApp Store will be included, offering improved app discoverability and a rewards tracker across various categories, such as payments, DeFi, NFTs, and gaming.
- Users will receive a Seeker Genesis Token, a unique NFT that unlocks exclusive rewards and content within the Solana ecosystem, enhancing their engagement with creators and the community.
- Preorders for the Seeker are currently open, and over 140,000 devices have already been reserved across 57 countries. The official release of the Seeker is planned for 2025, as Solana aims to establish it as the leading mobile device for Web3 applications.
Donald Trump Bites Down on a “Crypto Burger”
On September 18, 2024, former President Donald Trump made history by becoming the first ex-U.S. president to use Bitcoin in a public transaction at a bar in New York City called Pubkey, popular for accepting cryptocurrency.
- During his campaign stop, Trump purchased hamburgers using Bitcoin, spending $998.70 for about a dozen burgers, which he humorously referred to as “crypto burgers.”
- This event occurred shortly after Trump announced the launch of his own token through the World Liberty Financial crypto platform, which his family manages.
- Although Trump previously criticized Bitcoin as a “scam,” he has recently embraced cryptocurrency, advocating for Bitcoin miners and even speaking at the Bitcoin 2024 conference in Nashville.
Kamala Harris Breaks Silence on Crypto, Pledges Support with Consumer Protection
Vice President Kamala Harris, the Democratic Party’s presidential frontrunner, made her first public remarks about cryptocurrency on September 22, 2024, during a Wall Street fundraiser in New York City.
- Harris vowed to encourage investment in innovative technologies like artificial intelligence and digital assets while prioritizing consumer and investor protections.
- Harris also promised to create a safe business environment with consistent and transparent regulations and to invest in industries such as semiconductors, clean energy, and other emerging sectors.
- This marks a shift from the Biden administration’s perceived unfriendly stance towards the crypto industry, which has been waiting for Harris to clarify her position on the matter.
- Harris’ Republican rival, Donald Trump, has also been actively courting the crypto community, recently paying for burgers with Bitcoin at a New York bar and promoting his own crypto project called World Liberty Financial.
- Reactions from the crypto industry have been mixed. Some have praised Harris’ remarks as progress, while others call for more concrete policy details.
Circle’s USDC Stablecoin to Launch on Sui Network
Circle has announced that its USDC stablecoin will soon be natively supported on the Sui network, expanding its reach beyond 15 other blockchain networks.
- The integration will utilize the Cross-Chain Transfer Protocol (CCTP), which allows for seamless USDC transfers between different blockchains by burning and minting tokens.
- Sui is a layer-1 blockchain designed to simplify application development in the Web3 ecosystem, and this integration is expected to enhance its usability, security, and interoperability for developers and users.
- With USDC now available on Sui, developers will have access to one of the most trusted digital currencies, which has processed about $1.4 trillion in transactions over the past year.
- This launch marks a significant milestone for the Sui ecosystem, as it aims to attract more users and developers by providing a reliable and efficient stablecoin for various applications.
