Interest Rate Cut Impact: Bitcoin Price Reaction Unraveled With Future Projections

The Bitcoin price experienced a significant downturn on Wednesday, briefly falling below the $100,000 milestone as the US Federal Reserve’s (Fed) cautious outlook on interest rate cuts dampened crypto investments. At one point in Wednesday’s trading session, the market’s leading crypto dropped to $98,760 before recovering to the six-figure mark. Other cryptocurrencies, including Ethereum (ETH) and Dogecoin (DOGE), also faced substantial retraces. Fed’s Cautious Rate Cut Sparks Uncertainty In Markets The Federal Reserve’s decision to lower borrowing costs for the third consecutive time came with a tempered forecast for future reductions, particularly for 2025. Chair Jerome Powell emphasized that more progress is needed on inflation before the central bank can consider further easing of monetary policy. Tony Sycamore, a market analyst at IG Australia Pty, noted that the Fed’s decision was largely anticipated given recent trends in US inflation and economic activity. However, it acted as a catalyst for shedding some of the “speculative excess” that had entered risk assets, including stocks and Bitcoin, especially following the recent US elections, according to Sycamore. Related Reading: Bitcoin Price Still Mirroring Bullish Move From 2023, What To Expect After Hitting $108,000 ATH Despite this dip, the Bitcoin price remains up approximately 50% since the US elections on November 5, largely due to President-elect Donald Trump’s commitment to deregulating the cryptocurrency sector while floating the idea of establishing a national stockpile of Bitcoin, further boosting market sentiment. Paul Veradittakit, managing partner at Pantera Capital, expressed optimism about the Bitcoin price future, stating, “All signs point to a good floor and outlook for Bitcoin,” even as some traders took profits following the Fed meeting. Market dynamics shifted post-Fed meeting, with Sean McNulty, director of trading at liquidity provider Arbelos Markets, reporting an uptick in demand for options to hedge against potential Bitcoin declines. Zann Kwan, chief investment officer at Revo Digital Family Office, indicated that a temporary retreat into the low $90,000s for Bitcoin is possible. Bitcoin Price Eyes Key Resistance Level At $105,400 Crypto analyst Ali Martinez provided insights into market sentiment, emphasizing that current market behavior reflects expectations about future conditions rather than past events. The analyst noted that while the 25 basis point rate cut was largely anticipated, the Fed’s updated outlook for 2025 was not well received. Instead of three anticipated rate cuts in 2025, the Fed now projects only two, raising concerns about persistent inflation. Related Reading: Bitcoin Could Peak Between $160,000 And $290,000 If These Historical Patterns Repeat – Report Recent inflation data has also been disheartening, with core consumer price index (CPI) figures annualizing at 4% and core personal consumption expenditures (PCE) approaching 3.5%. Producer price index (PPI) figures are similarly trending upward, suggesting that inflation could remain an ongoing challenge. However, Martinez emphasizes that the real turning point came during Powell’s press conference when he described the decision as a “closer call,” indicating that not all Fed officials were in agreement about the cuts. This sent the US dollar soaring to levels not seen since 2022, which typically correlates with declines for BTC. Martinez also disclosed that the Bitcoin price had broken out of a head-and-shoulders pattern on Wednesday, which resulted in its drop just below $99,000, but emphasized that the cryptocurrency must surpass $105,400 to negate any bearish outlook. At the time of writing, the Bitcoin price stands at $101,180, down 2.2% over the past 24 hours. Featured image from DALL-E, chart from TradingView.com

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Ethena Partners with World Liberty Financial for Dual Reward DeFi Integration

The cryptocurrency market is bracing for significant developments as the industry navigates shifting political landscapes and ambitious partnerships. From Ethena’s integration with Donald Trump-backed World Liberty Financial to BitMEX co-founder Arthur Hayes’ tempered outlook on crypto market trends under Trump’s presidency, the intersection of policy, innovation, and market sentiment is poised to shape the sector’s trajectory in 2025. While bold moves like Ethena’s dual-reward initiative signal growth, cautionary perspectives like Hayes’ remind investors of the complexities ahead. Ethena Partners with Trump-Backed World Liberty Financial to Expand DeFi Horizons Decentralized finance (DeFi) protocol Ethena has announced a landmark partnership with Donald Trump-backed World Liberty Financial (WLF), marking a significant step toward enhancing stablecoin liquidity and incentivizing DeFi adoption. The collaboration, revealed on Dec. 18, aims to integrate Ethena’s sUSDe token — a staked derivative of its USDe synthetic dollar stablecoin — into World Liberty Financial’s Aave instance. This strategic partnership is expected to enable users to deposit USDe and earn dual rewards in sUSDe and WLF’s native token. The move is designed to boost stablecoin utilization while aligning incentives for participants across both platforms. Ethena Labs took to X to announce the partnership, emphasizing the proposal’s potential to reshape the liquidity and functionality of stablecoins within the DeFi ecosystem. “Should it pass, this proposal will enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards. This integration will increase stablecoin liquidity and utilization rates on the protocol, as sUSDe's integration has on Aave's Core instance.” In conjunction with the announcement, Ethena Labs submitted an official proposal to the World Liberty Financial community on Dec. 18, requesting approval to introduce sUSDe as the first new collateral asset for the platform. This move follows sUSDe’s successful risk analysis and adoption in Aave’s Core and Lido instances, further solidifying the token’s credibility. According to a detailed post on the community forum, the Ethena Foundation plans to “co-incentivize supply of sUSDe to come to the instance via its points program.” This approach is designed to encourage user participation while supporting the platform’s dual-reward mechanism. Challenges and the Trump Factor The announcement comes at a critical time for World Liberty Financial , which has faced challenges in establishing itself as a key player in the crypto space. Despite being backed by former US President Donald Trump, the company’s initial token offering in October struggled to gain traction. Out of 20 billion WLFI tokens available for sale, only 848.63 million tokens ($12.7 million worth) were sold in the first 24 hours, leaving an estimated $287 million worth unsold. However, November brought renewed momentum when prominent cryptocurrency entrepreneur Justin Sun purchased $30 million worth of WLF tokens, becoming its largest single holder. This influx of capital allowed World Liberty Financial to make significant investments in assets including Ethereum (ETH), Aave (AAVE), ENA, ONDO, Chainlink (LINK), and cbBTC, collectively valued at $30 million. The partnership with Ethena adds a much-needed strategic boost to World Liberty Financial as it seeks to compete with more established players in the crypto and DeFi markets. The integration of sUSDe into World Liberty Financial’s ecosystem is expected to have ripple effects throughout the DeFi landscape. As stablecoins like USDe gain traction, enhanced liquidity and dual-reward structures can encourage wider adoption and foster greater confidence among users. Ethena’s partnership aligns with broader industry trends emphasizing collaboration between innovative DeFi protocols and centralized platforms seeking to expand their reach. The success of this initiative may set a precedent for future integrations between synthetic assets and platforms looking to maximize user incentives. Arthur Hayes Predicts Crypto Market Volatility Amid Trump’s Inauguration: A Cautionary Perspective Meanwhile, the cryptocurrency market is abuzz with speculation about the impact of United States President-elect Donald Trump’s January 2025 inauguration. Many analysts anticipate a surge in market activity and positive trends driven by potential pro-crypto policies under Trump’s administration. However, Arthur Hayes , co-founder of BitMEX and a prominent figure in the crypto space, offers a contrarian view. In his Dec. 17 blog post, titled “Trump Truth,” Hayes warns of an impending ”reality check” for crypto investors who expect rapid policy changes. He predicts a volatile market trajectory that could see significant price drops in early 2025 before recovering later in the year. High Expectations Meet Political Realities Hayes cautions against the market’s lofty expectations, highlighting a significant disconnect between the optimism surrounding Trump’s pro-crypto rhetoric and the realities of policy implementation. “The market believes that Trump and his people can immediately achieve economic and political miracles,” Hayes wrote, adding that these hopes are likely misplaced in the short term. He notes the absence of politically feasible solutions that could be enacted swiftly. While Trump’s administration has fueled hopes for a more favorable regulatory environment, Hayes predicts that tangible policy changes will take much longer to materialize. This delay, he argues, could lead to disillusionment among investors and a corresponding sell-off in cryptocurrencies. Hayes anticipates a sharp market correction around Trump’s inauguration day, Jan. 20, 2025. He describes this phase as a “harrowing dump” that will act as a wake-up call for overzealous investors. Despite this forecast, Hayes remains bullish on the long-term trajectory of cryptocurrencies, predicting a recovery and “crack-up-boom phase” later in 2025. Hayes also provided insights into the investment strategy of his family office fund, Maelstrom. In anticipation of a market downturn, Maelstrom plans to reduce its positions before Trump’s inauguration, with the intention of re-entering the market at lower prices in the first half of 2025. “Maelstrom will be lightening up on certain positions in advance, hoping to rebuy some core positions at lower prices,” Hayes explained. He added that the fund is prepared to adjust its strategy if the bull market defies expectations and continues through the inauguration. The broader cryptocurrency market has experienced significant momentum since Trump’s victory in the presidential election in November 2024. Bitcoin (BTC) shattered records, surpassing $100,000 for the first time in early December. Analysts, including those from Singapore-based crypto platform Matrixport, forecast a strong start for Bitcoin in 2025, with many investors likely regretting missed accumulation opportunities. However, Hayes’ cautious outlook is not without company. Rumors suggest that MicroStrategy, a major institutional Bitcoin holder, could enter a blackout period in January 2025, temporarily halting its BTC acquisitions. This potential development has added another layer of uncertainty to the market’s near-term trajectory. Balancing Optimism with Prudence While many commentators view Trump’s presidency as a catalyst for mainstream crypto adoption, Hayes offers a sobering reminder of the complexities involved. He argues that the timeline for policy enactment and market adoption is often slower than anticipated, creating opportunities for volatility. “We are committed to admitting defeat if the bull market steamrolls through Jan. 20, licking our wounds, and getting back on the bull [...] I will be buying dips and rips,” Hayes said. As Trump’s inauguration approaches, the cryptocurrency market faces a pivotal moment. The interplay between investor expectations, regulatory realities, and macroeconomic trends will likely shape the market’s direction in early 2025. Hayes’ measured approach serves as a reminder that periods of exuberance often require a tempered perspective. While the short-term outlook remains uncertain, the long-term case for cryptocurrencies continues to strengthen. Whether Trump’s administration delivers the anticipated policy changes or not, the resilience of the crypto market will likely be tested — and, as Hayes suggests, those who manage risks effectively may find the greatest opportunities.

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Musk Loves Bitcoin (MUSKBTC) Solana Memecoin to Skyrocket 13,000% Before Exchange Listing, While SHIB, BONK and DOGE Underperform

Musk Loves Bitcoin could turn early investors into multi-millionaires, like Shiba Inu (SHIB) and Dogecoin (DOGE) did. Musk Loves Bitcoin (MUSKBTC), a new Solana memecoin that was launched today, is set to explode over 13,000% in price in the coming days. This is because MUSKBTC is set to soon be listed on numerous crypto exchanges, according to reports. This will give the Solana memecoin exposure to millions of additional investors, who will pour funds into the coin and drive its price up. Currently, Musk Loves Bitcoin can only be purchased via Solana decentralized exchanges, like Jup.ag and Raydium.io, and early investors stand to make huge returns in the coming days. Early investors in SHIB and DOGE made astronomical returns, and Musk Loves Bitcoin could become the next viral memecoin. Musk Loves Bitcoin launched with over $9,000 of liquidity, giving it a unique advantage over the majority of other new memecoins, and early investors could make huge gains. How to Buy To buy Musk Loves Bitcoin on Raydium.io or Jup.ag ahead of the CEX listings, users need to connect their Solflare, MetaMask or Phantom wallet, and swap Solana for Musk Loves Bitcoin by entering its contract address – 35GthqqwTd9HokNVfUzGpjsALCJbeUXXeKeJcrPCZsJB – in the receiving field. If you don’t have one of these wallets already, you can create a new wallet in a few minutes and transfer some Solana to it (which will then be used to buy the memecoin), from an exchange like Coinbase, Binance and many others. In fact, early investors could make returns similar to those who invested in Shiba Inu (SHIB) and Dogecoin (DOGE) before these memecoins went viral and exploded in price. If this happens, a new wave of memecoin millionaires could be created in a matter of weeks – or potentially even sooner. The Solana memecoin craze continues amid larger memecoins, like Shiba Inu (SHIB), Dogecoin (DOGE) and DogWifHat (WIF) trading sideways in recent weeks and losing momentum. This is why many SHIB, DOGE and WIF investors are instead investing in new Solana memecoins, like MUSKBTC. Such memecoins have no utility and no inherent value, but investors looking for high gains have been investing in them due to their potential to rapidly rise in price.

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Stock market wipes $1.5 trillion in a day; Crash imminent?

Wednesday, December 18, proved a particularly bloody day for the stock market as approximately $1.5 trillion was wiped from it before the closing bell. Prominent indices like the small-cap Russell 2,000 and the large-cap S&P 500 both effectively erased their post-election gains. The S&P 500 fell to 5,872.16 points – right between the November 5 close at 5,782.76 and November 6 close at 5,929.04 – and Russell 2,000 to 2,231.51 – below both 2,260.84 ‎on November 5 and 2,392.92 on November 6. S&P 500 and Russell 2,000 6-month price charts with November 6 levels marked. Source: Google The cryptocurrency market didn’t fare much better – though it doubtlessly benefitted from never closing – as it, at one point, erased some $300 billion, but reduced the losses to about $100 billion. Bitcoin ( BTC ) likewise made a $7,000 swing, first falling from just under $105,000 to approximately $98,000 and then recovering to its press time price of $101,708. Why the stock market is crashing The entirety of the latest market tumult can be traced back to the Federal Open Market Committee (FOMC) meeting, which ended on Wednesday. Still, the downturn could appear strange at face value, as the 25 basis points (BPS) cut the Fed announced has been widely expected, as reported by Finbold on December 4. Indeed, as is usually the case, the devil is in the details. Specifically, despite providing the expected interest rate reduction, the Federal Reserve cautioned there would be fewer cuts than previously anticipated in 2025. Similarly, it revised its inflation outlook upward, from 2.1% to 2.5%. Some investors took the announcements as something of an admission that the Federal Reserve’s strategy has not been a resounding success, while others began fearing the return of rampant inflation. The price-rise worries might be particularly pointed as, as it turned out, the feared recession over high interest rates never materialized, but inflation did begin reheating as soon as rate reductions became a reality. Such a setup – provided the trend continues – could lead to particularly bad outcomes, the worst of which is the ‘most predictable forthcoming inflation crisis,’ outlined early in 2024 and forecasting double-digit inflation in the coming years. Featured image via Shutterstock The post Stock market wipes $1.5 trillion in a day; Crash imminent? appeared first on Finbold .

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KuCoin’s “Light Up Africa” Donation Ceremony Held in Ghana, Benefiting 36,000 African Children

ACCRA, Ghana, Dec. 19, 2024 /PRNewswire/ — On December 19, the “Light Up Africa” Children’s Solar Lamp Project, jointly initiated by KuCoin, Global CSR, and the Smiling Simon Greenbuild Foundation, held its donation ceremony in Ghana. The project aims to provide light for schoolchildren in underdeveloped areas of Africa, promoting education equality and improving their living conditions. This charitable initiative originated at the 28th United Nations Climate Change Conference (COP28) in 2023, where KuCoin made a firm commitment to support social welfare initiatives during the “KuCoin Green Future Dinner”, witnessed by over 200 guests from various countries. In 2024, KuCoin has continued to fulfill its social responsibilities by launching a series of impactful public welfare projects, with the “Light Up Africa” Children’s Solar Lamp Project standing out as a prime example. Through the donation of solar reading lamps, the project provides opportunities for children in rural African areas without electricity to study at night, illuminating their path to knowledge. In February 2024, the first batch of 2,500 solar lamps was delivered to 25 schools in Nigeria. By October 2024, an additional 7,200 solar lamps were distributed to various communities in Sierra Leone, Nigeria, and Ghana, benefiting even more children. At the donation ceremony in Ghana, Dr. Anita Nana Okuribido from the Smiling Simon Green Building Foundation expressed sincere gratitude to KuCoin. She highlighted that local children previously relied on candles or dim moonlight for their evening studies. The solar lamps donated by KuCoin have significantly improved their learning conditions. One solar lamp impacts at least five students, meaning this project directly benefits 36,000 children, helping them step out of darkness and embrace the light of knowledge. Zhao Jing, Chairman of Global CSR, emphasized that this project has ignited African children’s enthusiasm for learning, boosting their confidence and instilling hope for a brighter future. This effort is not merely a material donation but also a profound source of encouragement. As a global leader in the digital economy, KuCoin remains committed to sustainable development goals, focusing on areas such as climate change, health, and education, and has achieved significant positive social impact. KuCoin’s Chief Sustainability Officer (CSO), Nancy Cheung, stated that the “Light Up Africa” project is a key step in KuCoin’s journey to advance the United Nations’ 17 Sustainable Development Goals. KuCoin will continue to support children’s education and technological innovation, driving society toward a better future. About KuCoin Founded in 2017, KuCoin is one of the pioneering and most globally recognized technology platforms supporting digital economies, built on a robust foundation of cutting-edge blockchain infrastructure, liquidity solutions, and an exceptional user experience. With a connected user base exceeding 37 million worldwide, KuCoin offers comprehensive digital asset solutions across wallets, trading, wealth management, payments, research, ventures, and AI-powered bots. KuCoin has garnered accolades such as “Best Crypto Apps & Exchanges” by Forbes and has been recognized among the “Top 50 Global Unicorns” by Hurun in 2024. These recognitions reflect its commitment to user-centric principles and core values, which include integrity, accountability, collaboration, and a relentless pursuit of excellence.

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ASIC’s Legal Action Against Binance Highlights Concerns Over Retail Investor Protections in Crypto Derivatives

The Australian Securities and Investments Commission (ASIC) has launched legal actions against Binance Australia Derivatives for improperly classifying retail clients, exposing them to significant financial risks. The regulator claims that

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Is a $20 ADA Within Reach? Discover Why 1Fuel Could Be The Next 100x Altcoin Sensation!

The post Is a $20 ADA Within Reach? Discover Why 1Fuel Could Be The Next 100x Altcoin Sensation! appeared first on Coinpedia Fintech News As the market enters the recovery phase with several assets seeing month-long gains, there’s been a high level of interest in certain tokens for their utility and potential returns. ADA is one of these tokens, but its rally isn’t yet defined as several factors surround it. For 1Fuel (OFT) , its rally is guaranteed and expected to return over 500x from its current presale price of $0.012. The excitement and anticipation by investors and institutional traders buying 1Fuel stems from its role as the utility token for the best cryptocurrency wallet. You’ll learn more about why 1Fuel’s boom is more anticipated than ADA’s. Whales Are Accumulating ADA: A Strong Indication Of Buying ADA has seen notable interest among whales, otherwise known as large investors, as they activate their buying spree. In a recent move, over $1 million worth of ADA has been purchased according to Santiment. When such buying occurs, it means there’s ongoing demand for ADA that can take its price higher. The asset has naturally been bullish, with a gain of 45.84% in the past month and 6,123.93% since its all-time low of $0.01735 according to CoinMarketCap. With the current bullish momentum in the market and the positive developments surrounding Cardano, the Layer 1 blockchain could trade back to its previous all-time high of $3.10. However, a move to $20 could remain a stretch unless there’s continued strength in the market. While there’s no guarantee of ADA’s super surge, it’s a different scenario with 1Fuel , which has been investors’ priority. Utility Drives Investor Interest in 1Fuel The utility of 1Fuel remains unrivaled as it sits at the center of all activities happening on the platform, serving as one of the best cryptocurrency wallets. Unlike the multiple cryptocurrency exchanges available, which come in a very fragmented nature, there’s no seamless transaction system. Traders wanting to interact with different blockchains require specific tokens—for example, BNB for BEP20 and ETH for ERC20 transactions. With 1Fuel, the situation is different. All you need is the token to consolidate transactions across multiple blockchains on its platform without any difficulties or delays. This means you’ll only require the token to complete transactions. With multiple activities happening on the wallet, the asset is expected to see a significant price surge, especially post-launch. Beyond the above, there are multiple other reasons why 1Fuel is of interest in the market . One major reason is its unique staking mechanism, which provides up to 30% Annual Percentage Rate (APR). Additionally, its peer-to-peer (P2P) mechanism allows it to compete with some of the best cryptocurrency exchanges. Conclusion 1Fuel is expected to deliver gains of over 100x when it finally launches, trading far higher than its current level of $0.012—offering returns far greater than what ADA can deliver. This makes 1Fuel the best choice for investors looking for guaranteed returns, significant gains, and superior utility. A major factor in its expected impact is its listing on some of the best cryptocurrency exchanges, which will make the asset even more valuable. 1 Fuel is currently trading at $0.012, slightly above its Stage 1 price of $0.01 and with Stage 2 filling up quickly and over $650k raised in a few days, you need to be quick to secure the lowest possible price. Don’t be late—join the presale today and be part of the future of secure, cross-chain cryptocurrency transactions. More about 1FUEL? Visit the links below: Presale: https://www.1fuel.io/ Telegram: https://t.me/Portal_1Fuel X: https://x.com/1fuel_?s=21

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Bitcoin Price Reaches $102,037: Key Insights and Analysis

Bitcoin Surpasses $102K Again! ————— 💰Coin: Bitcoin ( $BTC ) $102,037.00 ————— NFA.

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Australia Securities Regulator Sues Binance Over Alleged Consumer Safeguard Failures

"Crypto derivative products are inherently risky and complex, so it is critical that retail clients are classified correctly,” an ASIC official said.

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Is El Salvador Giving Up on Bitcoin? Agreement Reached with IMF! Here Are the Details

El Salvador has reached a preliminary agreement with the International Monetary Fund (IMF) to limit domestic Bitcoin activities in exchange for a $1.4 billion financing package. El Salvador to Reduce Bitcoin Activities in Pursuit of $1.4 Billion IMF Deal The agreement is part of the IMF's 40-month Extended Fund Facility (EFF), which aims to support the country's reform agenda and address its balance of payments challenges. According to the IMF, the financing package is expected to exceed $3.5 billion, with contributions from the World Bank, the Inter-American Development Bank and other regional development banks. Policy Changes Regarding Bitcoin El Salvador, under President Nayib Bukele, became the first country to accept Bitcoin as legal tender in June 2021 in a bid to promote financial inclusion. But the new deal with the IMF aims to reduce potential risks associated with the country’s Bitcoin project. Basic precautions include: Voluntary Bitcoin Acceptance: Private sector businesses will no longer be required to accept Bitcoin as payment, a departure from the 2021 Bitcoin Act, which requires all economic agents to accept Bitcoin. Public Sector Restrictions: The government will limit Bitcoin-related activities, purchases, and transactions. Tax Payments in USD Only: Citizens will be required to pay their taxes in USD only. Chivo Shutdown: The government will gradually reduce its involvement in state-run Bitcoin wallet Chivo. The IMF stressed that regulations on digital assets will be enhanced to promote transparency, maintain financial stability, and protect consumers and investors. *This is not investment advice. Continue Reading: Is El Salvador Giving Up on Bitcoin? Agreement Reached with IMF! Here Are the Details

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