The cryptocurrency market has been experiencing significant volatility, with prices fluctuating wildly over the past few weeks. This volatility is attributed to several factors, including regulatory news, market speculation, and macroeconomic indicators.

Bitcoin, the largest cryptocurrency by market capitalization, saw its price drop by 10% in a single day, only to recover partially within the next 24 hours. Ethereum followed a similar pattern, with a 12% dip and a subsequent 8% recovery. These rapid changes have left investors and analysts scrambling to understand the underlying causes.

One major factor contributing to the recent volatility is the regulatory environment. Various governments are taking different approaches to cryptocurrency regulation, creating uncertainty in the market. For example, China’s recent crackdown on cryptocurrency mining and trading has had a significant impact, causing a sharp decline in prices¹.

Another element influencing the market is the increasing institutional interest in cryptocurrencies. Large financial institutions and corporations are beginning to invest in cryptocurrencies, adding both liquidity and volatility to the market. For instance, Tesla’s announcement of accepting Bitcoin for car purchases initially caused a price surge, but their subsequent reversal led to a significant drop².

Speculation also plays a critical role in cryptocurrency price movements. Social media platforms and online forums are rife with discussions and predictions about the future of various cryptocurrencies. These speculative activities can lead to rapid price changes, as seen with the recent surge in Dogecoin’s price following tweets from high-profile individuals like Elon Musk.

Moreover, macroeconomic indicators such as inflation rates and monetary policies are also affecting cryptocurrency prices. Investors often see cryptocurrencies as a hedge against inflation, leading to increased demand during periods of economic uncertainty. Conversely, positive economic indicators can lead to a decrease in cryptocurrency investments as traditional assets become more attractive.

Despite the recent volatility, many analysts remain optimistic about the long-term prospects of cryptocurrencies. They argue that the current fluctuations are part of the market’s maturation process and that increased adoption and regulatory clarity will eventually lead to more stable prices.

In conclusion, the cryptocurrency market is experiencing a period of significant volatility driven by regulatory developments, institutional interest, speculation, and macroeconomic factors. While this volatility can be challenging for investors, it also presents opportunities for those who can navigate the market effectively.

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TAIPEI, Sept. 18, 2024 /PRNewswire/ — Unitas Foundation announced today that the second phase of Unitas Protocol is now live on the mainnet. This phase introduced insurance providers (IPs) who will lend their USDT to the Unitas Protocol to support its over-collateralization. Concurrently, the 4REX tokenomics system has begun its operations, including auctions, profit sharing, and IP-related benefits.

“This milestone completed the first iteration of the Unitas stablecoin ecosystem— a  USDT-backed unitized stablecoin mechanism,” said Sun Huang, Co-founder and Chief Technology Officer of Unitas Foundation. “Now, anyone can ‘unitize’ USDT into one local currency unit, including USD91 (INR-pegged), USD971 (AED-pegged), USD84 (VND-pegged), and USD1 (USD-pegged) with the over-collateralization provided by IPs.”

The concept of reserving USDT as a store of value while dealing in the local unit of account is designed to address dollar shortages in emerging markets, improving both transactions and cross-border payments.

“We are thrilled to complete the USDT-reserved Unitas system,” said Wayne Huang, Co-Founder and Board Director of Unitas Foundation. “The real-world applications in developing countries will be the main focus of the next stage. Meanwhile, our team is building the second Unitas ecosystem which will be backed by Tether Gold (XAUt). The transition from USD to Gold represents an exciting development for the stablecoin movement, and we are pleased to collaborate with Tether, the world’s largest stablecoin issuer on this project.”

Unitas Foundation, Tether, and XREX Group, a blockchain-enabled financial institution, will work together to launch XAU1, a USD-pegged unitized stablecoin over-reserved with XAUt, providing customers with a stable alternative and a hedge against inflation.

Unitas Foundation will unveil more exciting details at the second edition of the Stablecoin Summit, held on 20 September at Andaz Singapore as a side event of TOKEN2049.

About Unitas Foundation

Unitas Foundation is a non-profit organization founded in 2022. Unitas Protocol operates exogenously over-reserved stablecoins pegged to emerging market currencies. These stablecoins unleash emerging market potentials by facilitating foreign investment, cross-border payment, global market access, DeFi participation, efficient USD liquidity, and more.

To learn more about Unitas Foundation, visit its official website, Wiki, Telegram, X (formerly known as Twitter), blog, or email team@unitas.foundation.

Disclaimer:

1. The press release is for informative purposes only. It does not solicit funds, constitute contractual offers or promises, or proffer any legal, investment, or tax advice. Please seek a licensed professional’s support to address your particular situation should you need any professional advice.
   
2. Unitized stablecoin is an experiment intended to be a decentralized financial tool. To avoid doubt, crypto assets and stablecoins involved within the Protocol are not insured or audited by any third party, licensed or endorsed by any regulatory authority. Thus, unitized stablecoin is subject to various risks, including but not limited to liquidity risk, cybersecurity risk, regulatory risk, transactional risk, and human error risk. Please do your own research before participating in the Protocol. You can find more information at unitas.foundation.

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After 14 months of maintaining federal interest rates in the range of 5.25% to 5.5%, the Federal Reserve is set to announce a reduction in rates. For the cryptocurrency market, Fed rate cuts could signal a positive shift. The decision, expected during the Federal Open Market Committee meeting, is anticipated to be significant, with markets assigning a 65% chance of a 0.5% cut and a 35% chance of a 0.25% reduction. 

The Positive Outlook for Crypto

Higher interest rates typically encourage investors to place their funds in risk-free Treasury bonds, seeking attractive yields. In contrast, a reduction in rates usually nudges investors towards riskier assets like technology stocks and cryptocurrencies, creating a more favorable environment for these investments.

Bitcoin’s Resilience in an Environment of Fed Rate Cuts

Bitcoin (BTC) is poised to benefit substantially from the impending Fed rate cuts for several reasons. Firstly, Bitcoin has shown a strong positive correlation with global liquidity since its inception. “Bitcoin’s price has shown a strong positive correlation with global liquidity,” notes Brian Rudick, director of research at crypto trading firm GSR. This relationship suggests that as liquidity increases due to rate cuts, Bitcoin’s value is likely to rise.

Moreover, Bitcoin’s fixed supply enhances its appeal as a hedge against inflation, akin to gold. With forecasts indicating a 60% chance that rates could decrease by at least 1.25% by December, many experts believe inflation could return with a vengeance. Vincent Deluard, director of global macro for financial services company StoneX, points out that “the underlying conditions have not changed,” implying that inflationary shocks are imminent.

Quinn Thompson, founder of crypto hedge fund Lekker Capital, adds, “Government spending and inflation will likely bolster both Bitcoin and gold.” He emphasizes that inflation will become problematic again, which may prompt the Fed to halt rate cuts eventually. This environment could enhance Bitcoin’s status as a safe-haven asset.

Ethereum and Solana: Mixed Predictions

While Bitcoin’s trajectory is clearer, the outlook for other cryptocurrencies like Ethereum (ETH) and Solana (SOL) is more nuanced. As the leading cryptocurrency, Bitcoin often dictates the market’s direction. When Bitcoin rises, other cryptocurrencies typically follow suit; when Bitcoin falls, they often plunge.

Rudick suggests that “barring token-specific drivers, the majors will likely move in line with their beta, with Solana moving the most, followed by Ethereum, and then Bitcoin.” This implies that both Ethereum and Solana could see gains if Bitcoin maintains an upward trend.

However, Thompson highlights a crucial difference between these cryptocurrencies: Bitcoin and Ethereum have secured approval for US spot exchange-traded funds (ETFs), while Solana has not. The demand for Bitcoin ETFs has outpaced that for Ethereum, affecting capital inflows into the market. “The marginal buyer of crypto right now is an ETF buyer,” he states, emphasizing that ETF inflows have been negative for Ethereum and positive for Bitcoin.

Conclusion: A Cautious Optimism for the Crypto Market

In summary, the anticipated Fed rate cuts could catalyze a bullish environment for cryptocurrencies, particularly Bitcoin. With its established position as a leading asset and a hedge against inflation, Bitcoin is likely to see strong demand. This, in turn, could lift Ethereum and Solana, provided Bitcoin sustains its upward momentum.

While the landscape for cryptocurrency remains complex, especially for Ethereum and Solana without strong ETF backing, the overall sentiment is cautiously optimistic. As investors navigate this shifting market, monitoring Bitcoin’s performance will be essential for gauging the potential growth of Ethereum and Solana in the wake of the Fed’s decision.

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Donald Trump has officially launched his family’s cryptocurrency venture, World Liberty Financial, during a livestreamed interview on the social media platform X. This announcement comes as Trump, the Republican presidential nominee, seeks to expand his influence in the digital currency space. However, the details surrounding the venture remain vague, sparking curiosity and skepticism alike.

Limited Details on World Liberty Financial

In the livestream, Trump did not elaborate on the specifics of World Liberty Financial or how it would function as a cryptocurrency trading platform. Instead, he pivoted to discussions on artificial intelligence and recounted a recent alarming incident—a shooting he described as an apparent assassination attempt. While he expressed gratitude to law enforcement and the Secret Service for their quick response, his comments on the venture itself were largely overshadowed.

World Liberty Financial is anticipated to serve as a borrowing and lending service for trading cryptocurrencies. This would allow users to transact in digital currencies without reliance on traditional banking systems. Exchanges typically charge fees for transactions, which could potentially position Trump’s venture as a cost-effective alternative for cryptocurrency users.

Political Context and Ethical Concerns

The launch of Trump’s cryptocurrency venture has raised ethical questions, particularly regarding the timing of such a business initiative during his presidential campaign. Critics, including Jordan Libowitz from the watchdog group Citizens for Responsibility and Ethics in Washington, highlight the potential for conflicts of interest. “Taking a pro-crypto stance is not necessarily troubling, the troubling aspect is doing it while starting a way to personally benefit from it,” he noted.

Interestingly, during his presidency, Trump had expressed skepticism about cryptocurrencies, stating he was “not a fan” and warning about the potential for illegal activities associated with unregulated digital assets. However, his recent remarks indicate a notable shift in his stance, aligning himself more closely with cryptocurrency supporters.

Shift in Trump’s Stance on Cryptocurrencies

Throughout this election cycle, Trump has adopted a more favorable view of digital currencies. Earlier this year, he announced that his campaign would accept cryptocurrency donations as part of a strategy to build a “crypto army” in anticipation of the upcoming election. His appearance at a bitcoin conference in Nashville, where he promised to make the U.S. the “crypto capital of the planet,” further reflects this shift.

Law professor Hilary Allen, who specializes in cryptocurrency research, has expressed skepticism about Trump’s newfound enthusiasm for digital assets. “I think it’s fair to say that that reversal has been motivated in part by financial interests,” she stated, suggesting that the shift may not be purely ideological.

Implications for Crypto Enthusiasts

For crypto enthusiasts, Trump’s pivot could be seen as a positive development, especially if he regains the presidency. Many believe that his administration could usher in more favorable regulations for digital currencies, potentially benefiting investors in the long run. Meanwhile, other political figures, such as Vice President Kamala Harris, have yet to present clear policies regarding cryptocurrency regulation, leaving the market in a state of uncertainty.

In August, a group of Democratic lawmakers, including Senators Chuck Schumer and Kirsten Gillibrand, engaged with crypto supporters in an online event called Crypto 4 Harris. However, neither Harris nor her campaign team attended, raising questions about the Democrats’ commitment to addressing cryptocurrency issues.

Conclusion

The launch of Trump’s cryptocurrency venture marks a significant development in the intersection of politics and digital finance. While the specifics of World Liberty Financial remain unclear, the venture reflects Trump’s evolving views on cryptocurrencies and their role in the financial landscape. As the political climate continues to shift, the implications for both cryptocurrency investors and the broader market will unfold in the coming months, particularly as the election approaches. The coming weeks will be crucial as stakeholders evaluate how this venture aligns with Trump’s political ambitions and the future of cryptocurrency regulation in the United States.

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WARSAW, Poland, Sept. 16, 2024 /CNW/ — Flipster, a leading crypto derivatives trading platform, is excited to announce that it will co-host an exclusive party coinciding with TOKEN2049, with the industry-leading NFT project Pudgy Penguins, alongside Mocaverse.

The exclusive side event will be held at Zouk, one of Asia’s most renowned nightlife venues, on September 17, providing a relaxed environment for attendees to network. Attendees can look forward to exciting activities, including on-site games, lucky draws, a photo booth, Flipster and Pudgy Penguins swag, giveaways, and more.

Flipster is a silver sponsor of Token2049, Asia’s largest Web3 event, taking place in Singapore on September 18-19. With over 20,000 attendees expected, the event will serve as a key gathering for the global cryptocurrency and blockchain community.

About Pudgy Penguins

Pudgy Penguins is dedicated to making Web3 accessible to everyone by creating innovative products that enable seamless onboarding. Their focus on community empowerment and building brand awareness has made them the leading IP in the Web3 space while also disrupting the traditional IP sphere. They’re committed to impacting the everyday consumer and shaping the future of IP, Web3, and beyond. Visit pudgypenguins.com to learn more.

Instagram: @pudgypenguins
Twitter: @pudgypenguins
YouTube: @pudgypenguinsofficial 

Pudgy Penguins Media Contact
MGroup
press@mgroupsc.com

Sunshine Sachs Morgan & Lylis
pudgypenguins@ssmandl.com 

About Flipster

Flipster is among the fastest-growing crypto derivatives trading platforms, offering lightning-fast perpetual futures listings on the latest cryptocurrencies. The easy-to-use platform provides users with an all-in-one trading experience with leverage of up to 100x on over 250 tokens with high liquidity and zero trading fees. For media enquiries or interview requests with the team, please reach out to pr@flipster.io.

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SOURCE Flipster

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