As the weekend approaches, Bitcoin (CRYPTO: $BTC) and several other cryptocurrencies have seen price gains following a week marked by significant fluctuations due to an interest rate increase by the U.S. Federal Reserve.
On September 18, Bitcoin was trading 6% higher, at $80,850 U.S. This comes after it had been hovering near $75,000 U.S. before the decision on interest rates on September 16. Other cryptocurrencies also experienced boosts, with Ethereum (CRYPTO: $ETH) gaining 6% and Solana (CRYPTO: $SOL) jumping by 11%.
The swift rebound in digital currencies followed the Federal Reserve’s first interest rate increase in three years, which was a rise of 25 basis points. The market seems to be reacting positively, viewing this initial uptick in rates intended to combat inflation as a relief rally for cryptocurrencies.
More Insights From Cryptoprowl:
Falling crude oil prices are also buoying the crypto market as the weekend nears. Brent crude oil, which previously traded near $110 U.S. a barrel, was priced at $103.80 U.S. a barrel on September 18. Analysts suggest that for Bitcoin to solidify its recovery, it needs to break through the $80,000 U.S. barrier.
Additional Updates from the Crypto World This Week:
Clarity Act Fails In U.S. Senate: The notable development this week was the failure of the “Clarity Act” to secure a vital vote in the U.S. Senate, achieving only 50 votes in favor and 49 against, falling short of the 60 necessary for progression. If passed, this legislation would have provided essential guidelines for digital assets such as Bitcoin, greatly influencing the sector’s future. Following this setback, shares of major crypto companies dropped significantly, by up to 10%.
Strategy Maintains Bitcoin Holdings: Strategy (NASDAQ: $MSTR) chose not to adjust its Bitcoin holdings, focusing instead on repurchasing preferred stock (NASDAQ: $STRC). The company acquired 1.42 million of its preferred shares, totaling $139.3 million U.S. Its Bitcoin holdings have remained stable at 845,050 BTC, valued at $65.7 billion U.S. for the second week in a row.
U.S. Regulatory Push for Crypto Following Clarity Act Stalemate: U.S. securities regulators announced plans to proceed with crypto regulations following the Clarity Act’s failure in Congress. Both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have expressed intentions to implement new rules for the crypto sector. Meanwhile, Democratic lawmakers have raised concerns regarding conflicts of interest among politicians involved with crypto. Experts on Wall Street predict that the SEC and CFTC will take the lead in regulating Bitcoin and similar assets.
Kalshi to Introduce U.S. Stock and Commodity Trading: Prediction platform Kalshi is set to allow users to trade perpetual futures contracts on individual U.S. stocks and wager on agricultural commodity price fluctuations. The company is currently seeking regulatory approval for contracts associated with major U.S. companies like Tesla (NASDAQ: $TSLA) and Nvidia (NASDAQ: $NVDA). These perpetual futures, or “perps,” are leveraged contracts that enable speculation on stock price movements without an expiration date.
CoinEx Shuts Down: The Hong Kong-based cryptocurrency exchange CoinEx will cease operations following nine years of service. The company cited an “increasingly difficult” operational climate as the reason for the closure. This is part of a broader trend in the industry, as other exchanges such as Bitmart and BitMEX also shut down this year amid ongoing market challenges.
Cathie Wood Divests from Crypto Stocks: Renowned investor Cathie Wood has sold off several cryptocurrency-related stock holdings as their prices rallied. Ark Invest, Wood’s firm, divested shares of Coinbase Global (NASDAQ: $COIN), Circle (NYSE: $CRCL), Bullish (NYSE: $BLSH), and Bitmine (NYSE: $BMNR) during this period of rising stock prices. The divestments coincide with substantial increases in the crypto market, with Bitcoin and Ethereum appreciating over 20% since the end of August. Wood’s firm regularly adjusts its crypto stock portfolio based on market dynamics.
Deutsche Bank To Provide Cryptocurrency Custody Services: Deutsche Bank (NYSE: $DB), Germany’s largest bank, plans to introduce cryptocurrency custody services for its institutional clientele. A statement from the bank revealed that this digital asset custody offering is expected to launch by year’s end, allowing European institutions and corporations regulated access to secure storage for cryptocurrencies like Bitcoin. Crypto custody entails managing the secure storage of the private keys that verify ownership of these digital assets.
Circle Launches New Arc Blockchain: Circle Internet Group has announced the release of its new blockchain called “Arc.” The development aims to help Circle expand beyond its $74 billion USDC stablecoin (CRYPTO: $USDC). Circle stated that Arc will position it as one of the leading blockchain firms and facilitate the transfer of money and financial assets on-chain. Earlier this year, Circle faced a setback when a group of 21 financial institutions revealed plans for their own U.S. dollar-backed stablecoin scheduled to launch in 2027.
Ransom Demand for Revolut Hackers: Hackers targeting the digital bank Revolut are demanding a ransom of $3 million U.S., payable in Monero (CRYPTO: $XMR). These cybercriminals threaten to leak sensitive customer information to other criminal organizations unless their demands are met. Monero is commonly sought by cybercriminals for ransom payments due to its high level of anonymity. Revolut operates as a prominent digital banking platform, offering users tools to manage finances and trade assets through its mobile application.
Ethereum Upgrade Dates Announced: The Ethereum Foundation has confirmed the testing dates for its upcoming Glamsterdam upgrade. Set for October 6, this significant enhancement to the blockchain network is designed to accommodate increased activity per block without overloading the validating computers. Ultimately, this upgrade aims to allow for more transactions and payments to be processed across the Ethereum platform.
