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24 Crypto Update, 20 Sep: Crypto market slumped on hawkish Fed remarks

Key Takeaways
  • Leading cryptocurrency tokens saw a decline in the early morning session
  • Bitcoin maintains its stability around $27,000, with Ethereum trading above $1,600
  • The total market capitalization of cryptocurrencies experienced a decrease, stabilizing at $1.11 trillion
21-Sep-2023 By: Lokesh Gupta
24 Crypto Update, 20

Fed maintains expected rate status at September meeting

During the September gathering, the U.S. Federal Reserve adhered to the anticipated course of action by keeping interest rates steady. Bitcoin momentarily slipped below the $26,900 threshold following hints from Fed Chair Jerome Powell about potential future interest rate hikes to tackle rising inflation. However, Bitcoin promptly rebounded and is presently trading above the critical $27,000 support level. Ether experienced a minor drop but managed to maintain a position above $1,600. Over the past 24 hours, the majority of the top 10 cryptocurrencies, excluding stablecoins, registered declines in their values.

In terms of regulatory developments, the U.S. Securities and Exchange Commission (SEC) has unveiled its plans to expand its regulatory purview over the cryptocurrency sector. The SEC has already taken legal measures against numerous cryptocurrency enterprises, leveling allegations of securities law violations. Prominently, these actions have targeted Ripple Labs, a software company, in addition to the U.S. branches of two significant cryptocurrency exchanges, namely Coinbase Global Inc. and Binance Holdings Ltd.

Major Event to be watch

Crypto Fear and Greed:

Over the past 24 hours, the cryptocurrency market has entered a consolidation phase, signifying a relatively stable sentiment index. Currently, the sentiment index registers at 47 out of a possible 100, indicating limited notable shifts in market sentiment.

Latest Market Update: 

The broader cryptocurrency market maintained stability, with Bitcoin holding above $27,000 on Thursday. Prominent altcoins like Ethereum, Dogecoin, Ripple, Solana and Litecoin exhibited minor fluctuations. Immutable emerged as the top performer, surging by over 37% in 24 hours.

Major Worldwide News Update:

  • Federal Reserve Chair Jerome Powell, in a post-Federal Open Market Committee (FOMC) press conference, announced that interest rates would remain steady at 5.25-5.50%. Powell acknowledged the Fed's commitment to achieving the 2% inflation target and hinted at the possibility of another rate hike. The Fed projects a drop in median PCE inflation to 3.3% by the end of 2023. Market sentiment suggests a 36.3% chance of an interest rate hike to 5.50-5.75% in the November FOMC meeting. Powell also mentioned the potential for future interest rate cuts as inflation gets closer to the target.

  • Federal agencies, including the Justice Department and SEC, are intensifying probes into whether Tesla's Elon Musk misuse company funds for personal benefits, focusing on the rumored "Project 42," a lavish glass house near Tesla's Texas headquarters. Musk denies these allegations amid growing scrutiny over self-driving technology and other issues.

  • Pro-XRP lawyer John E. Deaton highlights the significance of Custodia Bank's lawsuit against the Federal Reserve, emphasizing the potential impact on cryptocurrency "on-ramps" and "off-ramps" if established financial institutions disrupt these vital conduits. The legal battle could have broader implications for the cryptocurrency industry and innovation.

  • OpenAI introduces DALL·E 3, a remarkable advancement in text-to-image synthesis. It excels in creating vivid and accurate images from text prompts, surpassing its predecessor DALL·E 2. Integrated with ChatGPT, it enables collaborative design experiences, set to be available to ChatGPT Plus and Enterprise customers in early October. Users retain rights to images generated by the model.

  • The House Financial Services Committee has approved a bill to halt progress on a U.S. Central Bank Digital Currency (CBDC) until explicitly approved by Congress. This move sparked debates, with concerns about stifling innovation and lagging behind global CBDC developments, particularly China's. The bill faces an uncertain future in the Senate.

  • Shiba Inu's Layer-2 scalability platform, Shibarium, has achieved impressive growth within a month of its relaunch. It now boasts over 1 million wallet addresses, adding 36,667 new addresses daily, and approaching 3 million total transactions. The platform also saw a 633% increase in verified contracts, reaching 415, and encourages users to move their assets to Shibarium for token management and burning. Transaction fees on Shibarium are currently minimal but may increase with higher traffic.

  • A long-dormant Ethereum ICO wallet linked to core developer Danno Ferrin became active, transferring 192.2 ETH (approximately $313.2k) to Coinbase after eight years. This follows other substantial transfers, including Ethereum co-founder Vitalik Buterin's 300 ETH move to Kraken, totaling around $31 million in ETH moved recently. Ethereum's price remains relatively stable despite these transactions.

  • X, formerly known as Twitter, is planning to integrate payment solutions into its Everything app. CEO Linda Yaccarino hinted at these developments, suggesting the ability to pay users through chat features. While there were concerns about potential fees for platform use, Elon Musk clarified that there are no plans to charge all X users.

  • Donald Trump Jr.'s X (Twitter) account was hacked, leading to false claims about his father's death and offensive posts. The incident highlights concerns about platform vulnerabilities and its handling of hate content. X Corporation also faced scrutiny for not addressing 99% of hate content posted by Twitter Blue subscribers.

  • Former UK FCA chair Charles Randell revealed that the FCA faced political pressure to approve crypto firms, some of which are now under US DOJ criminal investigation. Randell highlighted the need for safeguards against industry and political influence on regulatory decisions. The FCA has recently tightened rules on crypto promotions in the UK.

  • Bitcoin (BTC) is currently experiencing a phase of consolidation with relative price stability around $27,159.76 and a market capitalization of approximately $529.37 billion. The consolidation coincides with unexpected drops in inflation rates in the United Kingdom, potentially affecting the Bank of England's interest rate decisions and, subsequently, Bitcoin's trajectory.

  • Ben Armstrong, known as BitBoy in the crypto community, claims to face threats and extortion attempts after being ousted from his company, Hit Network. He filed a lawsuit and made a plea for financial assistance from his followers, garnering mixed reactions within the crypto community.

COIN GABBAR Views: Will Bitcoin undergo a price correction before September ends? Could Bitcoin's price surge to $50K by year-end, potentially booming in October? Following the Fed announcement, is the crypto market poised for a slump or a rise? Will Bitcoin maintain its $25,000 threshold, or might it breach it after the hawkish comments? Stay tuned for the latest news at

Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.

For More News: Crypto Daily Roundup 20 sep:Will the Fed Hit the Brakes on Rate Hikes?