– The decline in the price of bitcoin and other cryptocurrencies this week is most likely due to investors anticipating the upcoming decision by the US Federal Reserve regarding a rate cut. The announcement will be made following the conclusion of the meeting on 18 September.
However, as some analysts have noted, the timing of the price drop also coincides with reports of another assassination attempt on Donald Trump. It is worth mentioning that this former (and possibly future) US president positions himself as a supporter of cryptocurrencies and has promised to turn the US into the "world capital of bitcoin and cryptocurrencies".
– The stablecoin Tether (USDT) can already be considered one of the key elements of the global financial system. Statistics have shown that in 2023, the volume of transactions and the network’s profitability reached the same levels as Visa. The only difference is that Visa processes transactions through credit cards in traditional currency, while Tether occupies a similar niche in the crypto sphere. Moreover, Tether surpassed BlackRock, the world’s largest asset management company, in profit by $700 million. All of this not only reflects the volume of USDT usage but also the role this stablecoin has come to play in global financial operations.
For reference: According to Token Terminal, over the past two years, USDT's market share has grown by more than 20%. The asset now controls over 75% of the entire stablecoin market. In Q1 2024, Tether earned more than $4.5 billion in profit. In just the last 30 days, Tether made around $400 million.
– According to WeRate co-founder Quinten Francois, current data indicates the imminent start of a bull rally for the leading cryptocurrency. "The average bitcoin cycle begins approximately 170 days after the halving, with the peak forming after 480 days," he writes. Based on this, there is not much time left before the rally starts – according to Francois's calculations, the surge should begin on Tuesday, 8 October.
The analyst believes that it is crucial for the asset to hold its position around the critically important support zone of $59,000. With the US Federal Reserve meeting, the second half of this week will be extremely significant. Francois predicts that there is a possibility BTC could rise above $64,500. If this happens, the coin's price may increase by at least 46% over the course of October-November.
– Michaël van de Poppe, CIO and founder of MN Trading Consultancy, believes that major economies will soon be forced to begin the process of refinancing their debt obligations. As a result, the increase in global liquidity will become a key catalyst for the next bull cycle in the digital market. "Cryptocurrencies and commodities are highly undervalued," van de Poppe writes, "and it is very likely that they will enter a 10-year bull market. I expect significant growth from these two asset classes."
According to the expert, the leading cryptocurrency is already primed for growth after a decline that has lasted more than three months. BTC could rise to $90,000, having tested the key support level of $58,000. Van de Poppe considers the likelihood of the price falling below $55,000 to be almost zero. (It’s worth noting that earlier in September, analysts at the American company ARK Invest identified $52,000 and $46,000 as key support levels for bitcoin).
– According to analyst Vladimir Cohen, liquidity began to exit the altcoin sector in April, which led to a summer marked by fear across this market. However, the trend has now reversed, and reaching a new all-time high in market capitalisation of $1.1 trillion is just a matter of time. A significant influx of liquidity into the sector is expected due to the easing policies of central banks. In Cohen's view, some altcoins will experience growth of thousands of percent, while others will die out completely. He believes that the exit of coins that lack practical value will have a positive impact, making the sector more transparent and liquid.
Cohen also highlighted that the correlation between altcoins and bitcoin has weakened, with altcoins no longer experiencing significant price drops during bitcoin's dumps. This, according to the expert, suggests that investors have shifted into a long-term holding mode and are prepared to weather the dips in asset prices.
– The analyst known as Rekt Capital believes that bitcoin's growing dominance will deal a serious blow to altcoins. On the weekly chart, the market share of the leading cryptocurrency has consolidated above 57.68% for the first time since April 2019. Five years ago, after this threshold was crossed, an upward trend emerged, during which BTC dominance reached 71%, writes Rekt Capital.
This time, bitcoin’s position in the overall cryptocurrency market capitalisation has been strengthening for the past 210 days, despite BTC losing nearly 14% of its value over the past six months. As a result, bitcoin’s share of the total market capitalisation of digital assets has grown at the expense of falling altcoin prices. If this trend continues and BTC dominance rises, the prices of many alternative tokens are likely to drop.
However, the analyst known as Cryptollica has a different view. He believes that bitcoin's dominance will peak at 58% before collapsing to 35% by mid-2025. In this scenario, the market would enter an "altcoin season," characterised by an explosive surge in the prices of these tokens.
– Speaking at the Ethereum Singapore 2024 conference, Vitalik Buterin discussed the risks posed by centralised organisations and highlighted the role of individual network participants. In his view, solo stakers are the primary key to the security of the entire blockchain. Buterin emphasised that although these stakers form a diverse group, which is almost impossible to coordinate, they reduce reliance on centralised entities and add an essential decentralised layer of protection to the Ethereum network.
– MicroStrategy, founded by Michael Saylor, plans to raise an additional $700 million to pay off debts and increase its bitcoin holdings. The funding scheme is not new. MicroStrategy will issue convertible bonds, which will be exchanged for the company's shares in 2028. These securities are likely to be in high demand among investors, as the value of the company’s assets has nearly quadrupled over the past year.
The convertible bonds will be sold exclusively to qualified institutional investors. Of the funds raised, MicroStrategy intends to spend $500 million to repay debt on existing bonds, while the remaining $200 million will be used to increase its BTC holdings. Currently, MicroStrategy leads the ranking of private companies in terms of investments in "digital gold," holding 244,800 coins valued at approximately $14 billion. The average purchase price was $38,781 per 1 BTC.
– In August, the International Monetary Fund (IMF) once again recommended that the government of El Salvador abandon the integration of digital currencies into the country's economy and reconsider its policy towards the flagship cryptocurrency. However, it seems that such pressure has only fuelled El Salvador's leadership's desire for financial independence. Recently, President Nayib Bukele announced that the government plans to combat the budget deficit and its reliance on IMF loans by developing the crypto sector. To create a favourable investment climate, work is already underway to establish a network of private crypto banks, which will provide investors, including international ones, access to bitcoin transactions with fewer restrictions compared to traditional banks.
It is worth recalling that El Salvador became the first country in the world to make bitcoin legal tender on 7 September 2021. As of the end of August, the country’s crypto reserves amounted to 5,870 BTC. Additionally, 474 coins have been mined using geothermal energy.
– Unlike El Salvador, the Central Bank of Russia views cryptocurrencies and stablecoins as one of the main risk factors for the economy. In its financial market development project, the Russian Central Bank states that, due to the lack of global regulation, the use of cryptocurrencies and stablecoins in trade settlements could increase sharply. While some countries are taking steps to reduce the "destabilising role of cryptocurrencies," these efforts are insufficient, given the cross-border nature of digital coins. National economies must take measures to mitigate the risks posed by modern digital monetary substitutes and prevent them from gaining a dominant position over national currencies, according to the Russian Central Bank.
– The Madras High Court in India has prohibited the freezing of bank accounts belonging to crypto investors. The court emphasised that investigative authorities are required to notify account holders and the courts of such actions, though these requirements are often not followed. The Madras Court has been receiving numerous petitions to unfreeze the bank accounts of cryptocurrency owners, indicating law enforcement's inability to adequately explain the reasons for such blockages to account holders.
Earlier, Australian Senator Andrew Bragg described the freezing of bank accounts of companies and individuals using cryptocurrencies as a violation of antitrust laws. According to the senator, this does not resemble an effective approach to combating money laundering and the financing of terrorism through cryptocurrencies.
