Bitcoin’s Price Movement and Trump’s Crypto Initiative

Bitcoin’s price rose slightly on Tuesday ahead of the upcoming Federal Reserve meeting, where a cut in interest rates is widely anticipated.

Crypto prices were unperturbed by recent announcements regarding a new project by Republican presidential candidate Donald Trump, which seems to be a banking or exchange platform.

Bitcoin climbed 1.4% to $59,399.0 by 08:44 ET (12:44 GMT), maintaining a trading range of $50,000 to $60,000 that has persisted throughout most of the year.

Trump Unveils More Details on Crypto Project

The team behind World Liberty Financial—a crypto project endorsed by the Trump family—revealed key information during a launch event on X on Monday evening. The project appears to be a crypto banking and exchange platform that will issue a native token, WLFI, which will be allocated as follows:
– 20% to the founders
– 17% for rewards
– 63% for public sale

During the event, Trump briefly spoke, emphasizing his ambition to make America the “crypto capital” of the world, though he provided limited specifics.

As he campaigns for the 2024 presidential election, Trump has adopted a largely pro-crypto agenda but is trailing Democratic candidate Kamala Harris, particularly after a recent debate.

Crypto Price Overview: Fed Meeting in Focus

Overall cryptocurrency prices traded within a narrow range, with concentration shifting to the upcoming Fed meeting.
– Ether rose by 0.5% to $2,314.69.
– XRP added 2%.
– ADA and SOL remained unchanged.
– MATIC increased by 1.9%.
– Among meme tokens, DOGE dipped by 0.5%.

The Fed is largely expected to reduce interest rates and indicate a shift towards an easing cycle when it concludes a two-day meeting on Wednesday. Traders are anticipating a likelihood of a 50 basis points cut, an increase from previous expectations of a 25 basis point cut.

Lower rates are generally favorable for crypto, as they release liquidity that can be funneled into speculative investments. However, the sector experienced muted price movements ahead of the decision.

Bitcoin Mining Profitability Declines

Bitcoin mining profitability, measured by hashprice, has fallen 2% this month and is more than 50% lower compared to pre-halving levels, as reported by JPMorgan. The bank noted that this trend, alongside seasonal cutbacks, could hinder near-term growth in hashrate.

JPMorgan’s analysts also reported that U.S.-listed miners’ share of the network’s hashrate rose to 26.7%, marking a record high as they increased for the fifth consecutive month.

Despite Bitcoin’s price lingering below $60,000, mining stocks faced a downturn in early September. However, the network’s hashrate climbed four percent month-to-date, returning to pre-halving levels. The hashrate indicates the total computational power used in mining and processing transactions on proof-of-work blockchains.

The market cap tracking 14 U.S.-listed bitcoin miners has dropped 3% since late August, totaling nearly $20 billion. Hut 8 Corp saw an 11% gain, while CleanSpark Inc declined by 12% in this time frame.

Ambar Warrick contributed to this report.