Markets’ reaction to the Fed rate cut, and US regulator streamlines listing process for crypto ETFs
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📉 Market reaction muted - as rate cut largely priced in.
📊 SEC approves new ETF listing standards - to streamline access to digital assets.
💰 More crypto ETFs on the way - Grayscale’s Digital Large Cap Fund (BTC, ETH, SOL, ADA, XRP) approved.
As expected, the Federal Reserve Bank in the US cut interest rates by 25 basis points (0.25%) yesterday. Less expected was the market’s muted reaction. Bitcoin remains virtually unchanged since the much-hyped rate cut, as does most of the US stock market. Commenting on the decision, Fed Chair Jerome Powell said: “Ordinarily, when the labour market is weak, inflation is low. And when the labour market is really strong, that’s when you should be careful about inflation. We have a situation where we have two-sided risk. There’s no risk-free path.” The Fed signalled two more rate cuts before the end of the year.
Analysts say markets had already priced in the Fed’s move, but the added liquidity could support positive developments going forward. Speaking to Forbes, Julio Moreno, Head of Research at CryptoQuant, noted: “In general, a Fed cut is a positive catalyst for risk assets such as cryptocurrencies and could mark the start of a rally into Q4 as the Fed guidance was for more interest rate cuts this year.”
In regulatory developments, the Securities and Exchange Commission (SEC) yesterday approved new standards for listing exchange-traded funds (ETFs) on exchanges, removing many of the previous barriers. “This approval helps to maximise investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets,” said SEC Chairman Paul Atkins.
The regulator also approved the Grayscale Digital Large Cap Fund, which had been paused for some time. The ETF will trade over the counter for accredited investors and is composed mostly of Bitcoin and Ethereum, but also includes Solana, Cardano, and XRP, Blockworks reports.
In the markets…
🌍 Total crypto market cap ↗️
The global crypto market cap is approximately $4.1 trillion, up 1.03% from this time yesterday.
🟠 Bitcoin (BTC) ↘️
Price: $117,182 down 0.76% in the last 24 h.
Daily high: $117,815
Daily low: $114,950
📈 S&P 500 ↘️
SPY is currently down about 0.097% since yesterday’s close.
📈 Nasdaq 100 ↘️
The Nasdaq 100 is down about 0.21% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 51/100, in Neutral.
*Data is correct as at 18 September, 07:45 GMT.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
