Bitcoin faces volatility amid anticipated Fed rate cut, Bhutan amasses $780M in bitcoin, Ledger and Exodus launch crypto swap feature
Bitcoin faces volatility amid anticipated Fed rate cut and global economic slowdown
Bitcoin’s price has been fluctuating near $58,000 as investors brace for the U.S. Federal Reserve’s monetary policy decision, while global economic uncertainty, particularly in China, adds to the volatility. Between September 15 and 16, Bitcoin dropped by 4.1% to $57,595 after facing resistance at the $60,000 level. Although Bitcoin initially saw gains due to a weakening U.S. dollar and major investments like MicroStrategy’s $1.11 billion Bitcoin purchase, it struggled to maintain momentum above $62,000.
The upcoming Federal Open Market Committee (FOMC) meeting on September 18 has left traders cautious. A potential 0.50% rate cut could benefit risk-on assets like Bitcoin, but with equities performing well — such as the S&P 500 trading near its all-time high — investors may prioritize stocks over Bitcoin. If the Fed opts for a smaller 0.25% cut, it could negatively affect risk markets, including Bitcoin, by raising capital costs and hurting corporate earnings.
China’s slowing economic growth further complicates the outlook for Bitcoin. August’s retail sales in China grew by just 2.1%, while industrial production rose by 4.5%, both signaling a slowdown. Economists warn of long-term challenges in China’s economy, which could create additional uncertainty for global markets, including Bitcoin.
Investor sentiment has also been affected by regulatory risks. A dormant Bitcoin address transferred 211.3 BTC to Kraken, signaling potential selling by long-term holders. Additionally, the U.S. Securities and Exchange Commission (SEC) has escalated its case against Binance, labeling certain tokens as unregistered securities, which has further dampened the appetite for Bitcoin.
In summary, Bitcoin’s price faces pressure from macroeconomic concerns, regulatory risks, and investor caution ahead of the Fed’s decision.
Source: Cointelegraph
Bhutan amasses $780M in bitcoin, nearly one-third of its GDP
Bhutan, a small, landlocked nation in the Himalayas, has accumulated over $780 million in Bitcoin, representing nearly one-third of its $3 billion GDP. This makes Bhutan the fourth-largest state entity to hold Bitcoin, with these assets managed by its state-owned investment arm, Druk Holdings. Unlike most governments that acquire Bitcoin through asset seizures, Bhutan has invested in Bitcoin mining, which has expanded rapidly since early 2023.
Druk Holdings’ Bitcoin mining operations are linked to a collaboration with Singapore-based mining giant Bitdeer. In 2023, Bitdeer partnered with the Bhutanese government to establish cryptocurrency mining in Southeast Asia, raising over $500 million for the project. By the first phase of this initiative, Bitdeer had built a 100 megawatt (MW) facility, with plans to expand to 600MW by 2025.
Bhutan, a nation of fewer than 900,000 people, focuses on citizen well-being and happiness over economic measures. Its economy, largely dependent on hydropower, tourism, and agriculture, saw a GDP of just under $3 billion in 2022. However, the government, through Druk Holdings, is diversifying into digital assets and other sectors, such as metaverses and technology-driven investments, to boost revenue.
Druk Holdings’ Bitcoin wallets, tracked by Arkham, have shown active transaction activity in recent weeks. The fund has received several BTC deposits from various sources, including Foundry, a Bitcoin mining firm. Periodically, the fund has transferred Bitcoin to other wallets or cryptocurrency exchanges, including a significant transaction of over $25 million worth of BTC to Kraken in early July, where the Bitcoin was likely sold.
This Bitcoin investment signals Bhutan’s strategic push into digital assets to enhance its economic standing.
Source: Coindesk
Ledger and Exodus team up to launch decentralized crypto swap feature
Exodus Movement, a publicly traded fiat-to-crypto services company, has partnered with Ledger, a leading blockchain hardware manufacturer, to introduce a new crypto swap aggregator called XO Swap. This feature will be integrated into the Ledger Live application, allowing users to swap thousands of crypto pairs directly from their self-custody wallets. By connecting to third-party exchange APIs, XO Swap enables on-chain crypto transactions that ensure user control and security, offering an alternative to centralized exchange platforms.
Ledger, known for its hardware wallets, is focusing on expanding services that bridge multiple blockchains, aiming to make them more interconnected. This new swap feature aligns with the growing multichain crypto industry, which prioritizes security and decentralization. Users will be able to convert crypto assets across various platforms, with the swapped tokens delivered directly to their Ledger wallets. Initially, XO Swap will be available on desktops, with a mobile version set to follow later.
The partnership comes at a challenging financial time for Exodus Movement, which reported a $10 million loss in its August quarterly report, a stark contrast to the $2 million profit it posted in the same quarter the previous year. Despite this setback, the collaboration with Ledger represents a significant move to expand Exodus’ crypto services and improve its market position.
In summary, the XO Swap feature enhances user autonomy by offering secure, decentralized asset swaps across multiple blockchains, with an emphasis on self-custody, security, and privacy. This partnership between Exodus and Ledger could potentially strengthen both companies’ foothold in the increasingly competitive cryptocurrency market.
Source: The Block
