The cryptocurrency markets remained bullish, with nearly all major cryptocurrencies registering another day of significant increases. The global crypto market registered another increase of 3.06%, pushing it to $2.21 trillion. Bitcoin (BTC) is up over 3%, while Ethereum (ETH) continues its stellar recovery, and is up almost 6% over the past 24 hours, having surged past $2,500.
Other major cryptocurrencies that have registered an increase are Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Toncoin (TON), Polkadot (DOT), FET, and Bittensor (TAO). According to analysts, the Federal Reserve’s rate cut has enhanced the market sentiment of retail and institutional investors, attracting them to risky assets such as cryptocurrencies.
Impact Of The Federal Reserve’s Rate Cut
Bybit’s head of institution, Chris Aruliah, shared his thoughts on the impact of the Federal Reserve’s rate cut on the cryptocurrency market. Bybit is one of the most prominent cryptocurrency platforms in the world and facilitates the trading of digital assets for retail and institutional users. Aruliah discussed the historical pattern of rate cuts resulting in increased capital inflow from banks to risky assets such as cryptocurrencies, noting that the rate cut could positively impact markets, and encourage a highly diversified approach to investments.
“Historically, a rate cut has often led to an influx of capital from banks into the stock market, as lower interest rates drive more investment into riskier assets, including digital currencies, due to the diminished returns from traditional investment vehicles. We anticipate that the recent rate cut could enhance market sentiment and encourage both retail and institutional investors to diversify their portfolios by exploring and investing in cryptocurrencies.”
Russian Finance Ministry To Tax Crypto Miners
According to government sources, the Russian Finance Ministry is considering taxing crypto miners based on their electricity usage rather than the value of their token sales. Reports have stated that the Finance Ministry favors a crypto market tax system that would initially act as an indirect tax on miners’ electricity consumption.
“Our target remains taxation on profit. This is our long-term goal. In principle, we understand that this is the correct structure – like everyone else, like any [form of] business. An intermediate system could be based on taxation in the form of excise taxes. However, so far, no decision has been made on this matter.”
However, authorities have ruled that it is a stop-gap solution as Moscow tries to figure out how to calculate profits accurately, given that miners will be creative with their accounting. Russia’s Deputy Finance Minister Ivan Chebeskov stated that some miners may not disclose all their wallets, and it would be easier to estimate power consumption than crypto assets’ value. He added that the Finance Ministry expects MPs to approve a law on crypto mining tax by the end of the State Duma’s autumn session.
Commerzbank Announces Partnership With Deutsche Borse’s Crypto Finance
One of Germany’s largest banks, Commerzbank, has partnered with Deutsche Borse subsidiary Crypto Finance to expand its crypto services and offer secure BTC and ETH services to corporate customers. The collaboration will focus on seamless trading and custody solutions and ensure regulated access to crypto services and digital assets for select clients based in Germany. The partnership is a crucial step towards broadening institutional crypto services in Europe.
“The joint service will initially focus on bitcoin and ether, targeting selected existing Commerzbank corporate clients in Germany. Under this strategic partnership, Commerzbank will manage the custody of digital assets, while Crypto Finance will ensure their secure trading. This collaboration provides Commerzbank’s corporate clients with seamless and secure access to crypto assets, without the need to forgo established and regulated structures and partners.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has been incredibly bullish this week, with sentiment turning even more positive following the Federal Reserve’s announcement of a 50 bps rate cut. The world’s largest cryptocurrency has been up over 3% in the past 24 hours and over 10% in the past week as bulls dominate the market. One popular analyst has stated that BTC is flashing a major bullish signal, moving above the daily Ichimoku cloud. The Ichimoku cloud is a Japanese technical analysis method that combines resistance and support levels, giving traders potential entry points in the market.
“Although this is a more bullish picture than a few days ago, the cloud does not yet give its assurance of a bullish continuation yet. That would take a bullish cloud and bullish TK cross.”
Looking at the price chart, we can see just how bullish BTC has been during the ongoing week after starting the week in the red, registering a drop of 1.69% on Monday to settle at $58,164. Demand picked up at the $58,000 level, and the 20-day SMA came into play, with investors buying the dip. As a result, BTC made a strong recovery on Tuesday, rising by almost 4% to push above the 50-day SMA and $60,000 to settle at $60,321. Sellers attempted to drive BTC back below the 50-day SMA on Wednesday but could not do so as it rebounded, registering an increase of 2.41% to move to $61,773.
Source: TradingView
BTC reached a day high of $63,887 on Thursday as the markets felt the positive impact of the Federal Reserve’s announcement of a rate cut. However, with sellers actively defending the $64,000 level, buyers were pegged back as BTC eventually registered an increase of 1.84% and settled at $62,912. The current session sees BTC up by 1.13% as it looks to push above $64,000 and move to the $65,000 level. So far, buyers have maintained complete control of the markets this week, as seen in the price chart and the bullish MACD. Should BTC push above the 200-day SMA, a move to $65,000 could well be achievable. A break above this level could see the price move towards $70,000. However, if sellers retake the session, BTC could drop below $60,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) seems to have overcome its recent sluggishness as it surged past $2,500 this week. The world’s second-largest cryptocurrency is up almost 6% over the past 24 hours and over 9% if we look at weekly numbers. Spot Ethereum ETFs have also registered a limited but noticeable uptick in interest, with the iShares Ethereum Trust recording $5.24 million worth of inflows. Like most other crypto assets, ETH started the current week in the red, dropping below $2,300, a crucial level, and settling at $2,296. However, demand picked up on Tuesday, and buyers attempted to push above the 20-day SMA, which was ultimately unsuccessful. In the end, ETH registered a jump of just over 2% to reclaim $2,300 and settle at $2,343.
Source: TradingView
On Wednesday, sellers attempted to drive ETH below 2,300 once again, as it dipped to a day low of $2,277. However, buyers bought the dip, allowing ETH to register a 1.36% increase and settle at $2,375, but they could still not push above the 20-day SMA or $2,400. That changed on Thursday as ETH jumped by almost 4% to surge past the 20-day SMA and $2,400 and settle at $2,465. The current session has seen bullish sentiment persist as ETH broke past $2,500 and the 50-day SMA. It currently sits at $2,558 after an increase of almost 4%. Buyers will be looking to push to at least $2,700 if they can flip the $2,500 level to support. A break above $2,700 would give buyers the confidence to target the $2,850 level.
Solana (SOL) Price Analysis
Another cryptocurrency hugely benefiting from the Fed’s rate cut decision is Solana (SOL), which is up almost 10% in the past 24 hours. SOL ended the previous week on a bearish note, spending the weekend in the red. The current week began with SOL experiencing significant volatility as buyers and sellers struggled to establish control. Buyers attempted to gain ground as they defended the $130 level, while sellers tried to drive SOL below $130. In the end, neither were successful. Wednesday saw substantial movement as sellers again attempted to drive SOL below $130. However, demand picked up at lower levels, allowing SOL to recover, push back above $130, and settle at $134.
Source: TradingView
With the Fed announcing a 50 bps rate cut, SOL surged on Thursday, pushing above $140 and the 50-day SMA after an increase of 6.36% and settling at $142. The current session has seen SOL continue its upward trajectory, pushing above the crucial $150 level. SOL is currently up by just under 6% and trading at $151. Solana has registered massive institutional interest this month, which, along with the Fed rate cut, is acting as a catalyst for a massive surge in price, with $160 in sight after a move above $150. However, SOL must first get past the 200-day SMA.
Institutions have invested almost $10 million in SOL in the current month after a very bearish August. The week ending September 13 recorded an additional $3.8 million, indicating that institutional investors have immense confidence in Solana’s long-term potential. Solana’s macro momentum has also increased, with the Chaikin Money Flow (CMF) indicator reaching its highest in the past month and a half.
Dogwifhat (WIF) Price Analysis
Solana-based meme token Dogwifhat has also registered a sharp uptick this week, as it targets $2 as buyers show renewed interest in the asset. WIF is up over 6% in the past 24 hours and a staggering 19% over the past seven days. The meme token, which has been fluctuating in a large trading range, will look to break out of it and push above $2 as bullish sentiment returns to the market. As we can see in the price chart, WIF has remained in the green all week, starting with a marginal increase on Monday. Buyers continued to push WIF higher on Tuesday as it rose to $1.53, although a move above the 20-day SMA did not materialize.
Source: TradingView
WIF faced intense selling pressure on Wednesday, dropping to a low of $1.44. However, demand picked up at lower levels allowing buyers to retake control and push back above $1.50 and the 20-day SMA to settle at $1.62. Following the rate cut, bullish sentiment returned to the crypto markets, and WIF surged almost 10% on Thursday to settle at $1.77. The current session sees WIF up by nearly 2% and trading around the $1.80 level.
As we can see, buyers have attempted to push towards $2 but have been thwarted for now, thanks to sellers being active closer to $2. Sellers will look to drive WIF back below $1.60. On the other hand, if buyers can maintain current momentum, a move to $2 cannot be ruled out.
Bittensor (TAO) Price Analysis
Bittensor (TAO) has registered a staggering increase of almost 45% over the past 7 days, as it leads the surge in AI tokens. While BTC may have garnered all the attention, TAO’s incredible surge has made it the top token among all AI-related tokens. This comes despite starting the week in the red after a drop of almost 5% on Monday. TAO quickly rebounded on Tuesday, surging to a day high of $368 before sellers dropped the price. TAO eventually settled at $324, registering an impressive increase of 12.52%. Sellers attempted to take control on Wednesday but were unsuccessful. Instead, buyers regained control to push TAO to $337 after an increase of just over 4%.
Source: TradingView
With bullish sentiment returning to the markets on Thursday, TAO surged almost 11%, breaking past $340 to settle at $374. The current session sees TAO up almost 12% as buyers have pushed the price beyond $400.
Ripple (XRP) Price Analysis
Despite the crypto markets turning bullish this week, XRP has struggled as it trades between $0.55 and $0.60 and is witnessing significant volatility. XRP started the week on a positive note, registering an increase of 2.60% on Monday and settling at $0.59. However, with sellers active at $0.60, buyers lost steam, and XRP registered a marginal drop of 0.39% on Tuesday. Sellers attempted to drag XRP below the 50-day SMA on Wednesday, but with demand picking up closer to support levels, XRP recovered, registering a marginal increase to remain at $0.58.
Source: TradingView
Once again, buyers could not build momentum, as XRP registered yet another marginal increase on Thursday, moving to $0.59. The current session sees XRP up by 0.73% as buyers struggle to build momentum and push above $0.60.
Toncoin (TON) Price Analysis
Toncoin (TON) has pushed above $5.60, a level acting as strong resistance, and is now looking to move above the 50-day SMA and test $6, a level where it will encounter considerable resistance. Despite starting the week negatively, TON picked up on Tuesday, even though it managed only a marginal increase of 0.56% to settle at $5.50. TON continued to push higher on Wednesday after a rise of 2.29%, which allowed it to move past $5.60 and settle at $5.63. With TON above the resistance level, buyers attempted a push above the 50-day SMA on Wednesday.
Source: TradingView
However, they were thwarted after reaching a day high of $5.82 as selling pressure increased thanks to the 50-day SMA acting as a dynamic resistance level. TON eventually registered an increase of 0.92% and settled at $5.68. The current session sees TON up by just over 1.02% as buyers continue to look at moving past the 50-day SMA. Should TON move past it, a move to $6 could be on the cards. Whether it can push above these levels remains to be seen, with sellers expected to defend both levels vigorously.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.