Crypto News Catchup: Market Swings, Legal Milestones, and Political Moves Ahead of Fed Rate Cut

Recent developments in the cryptocurrency market include price declines in Bitcoin and Ethereum ahead of an anticipated Federal Reserve rate cut. Legal advancements are shaping the industry, with a UK court recognizing tether (USDT) as property under English law. On the political front, former President Donald Trump has launched a new cryptocurrency project called World Liberty Financial, reflecting the growing role of crypto in the upcoming 2024 US presidential election. Additionally, US Democratic senators are urging Bitcoin ATM operators to address rising fraud targeting elderly Americans.

The recent slump in Ethereum (ETH) prices comes at the start of a pivotal week in the US, with the Federal Reserve expected to announce a rate cut on September 18. The CME Fed Watch tool indicates a 41% chance of a 25 basis point cut and a 59% probability of a 50 basis point cut. Analysts at Bitfinex had earlier predicted that the anticipated rate cut could lead to a decline in the crypto market. Additionally, former President Donald Trump survived a second assassination attempt on September 15, though it’s unclear if this event had any impact on the ETH market.

The High Court of England and Wales has ruled that the stablecoin tether (USDT) is recognized as property under English law, according to Bitcoin.com. In a ruling on September 12, the court clarified that cryptocurrencies, despite being intangible, are treated as property for legal purposes. This decision arose from a case in which Fabrizio D’Aloia claimed that he was defrauded of over £2.5 million in cryptocurrency, including USDT. The ruling allows cryptocurrencies to be traced and treated like other assets in legal disputes. However, in this case, D’Aloia did not provide enough evidence to trace his stolen crypto to specific accounts. This decision has significant implications for future cryptocurrency-related legal cases.

Bitcoin has been on a downward trend since the third week of May when BTC/USD rebounded from the key resistance level of $72,091.859. The increased supply of Bitcoin pushed its price down, supported by several technical bearish signals. On June 11, a bearish reversal pattern, known in technical analysis as a “failure swing,” paved the way for the decline. Additionally, the identification of a “Death Cross,” a bearish technical signal, occurred when the 20-period Exponential Moving Average (EMA) crossed below the 50-period EMA, further accelerating the decline. Although BTC/USD attempted to recover multiple times, it eventually succumbed to downward pressure. Furthermore, the Momentum oscillator and the Relative Strength Index (RSI) support the bearish bias of BTCUSD, as they record values below the 100 and 50 baselines, respectively. Should the bears maintain control of the market, the following price targets may be estimated: $52,510.00, $48,887.00, $47,514.00, and $39,429.00. Conversely, a decisive breach above the key resistance level of $60,594.638 will signal a reversal to the upside, setting the stage for the following price targets: $62,515.375, $65,623.363, and $70,652.087.

Former President Donald Trump and his sons have launched a new cryptocurrency project called World Liberty Financial, aiming to position the United States as a global leader in the digital asset sector. Announced during an X Spaces livestream, the initiative focuses on decentralized finance (DeFi) and plans to issue a digital token named WLFI. Trump emphasized the importance of the US embracing cryptocurrency to compete with countries like China. While details remain limited, the project is intended to enhance financial security and promote free transactions, aligning with Trump’s pro-crypto stance in his current presidential campaign.

A group of seven Democratic US Senators, led by Dick Durbin and Elizabeth Warren, has called on the nation’s largest Bitcoin ATM operators to take immediate action to address fraud, particularly targeting elderly Americans. In letters sent to 10 major crypto ATM companies, the lawmakers highlighted the growing issue of financial fraud, with elderly individuals being three times more likely to fall victim. The senators urged these companies to implement stronger fraud prevention measures, citing Federal Trade Commission data showing $65 million in losses from Bitcoin ATM-related scams in the first half of 2024. Operators have been asked to provide responses by October 4 detailing their efforts to combat fraud.

As the 2024 US presidential election approaches, the cryptocurrency industry and its supporters are rallying behind pro-crypto candidates, especially in key battleground states. According to Cointelegraph, Dr. Tonya M. Evans, a law professor at Pennsylvania State University, believes that while cryptocurrency is a significant issue for many voters, it is not their primary concern and may not be the sole factor swaying multi-issue voters. However, in states like Pennsylvania, Georgia, and Arizona, even small shifts in voter preferences regarding crypto could “move the needle” due to the tight margins. Dr. Evans also noted that support for crypto is bipartisan, supported by the $14 million spent by pro-crypto political action committees on candidates from both major parties. Polls reflect mixed priorities among voters: one poll showed only 6% of respondents wanted presidential candidates to discuss crypto, whereas another poll found that 73% said a candidate’s crypto policies would have “some impact” on their voting decision.

In conclusion, the cryptocurrency landscape is witnessing significant developments that span market dynamics, legal rulings, political engagement, and regulatory actions. Major cryptocurrencies like Ethereum and Bitcoin are experiencing price fluctuations ahead of anticipated Federal Reserve rate cuts. Legal recognition of digital assets is advancing, exemplified by a UK court ruling that classifies tether (USDT) as property under English law. Politically, crypto is taking center stage with initiatives like former President Donald Trump’s new project, highlighting its growing role in the 2024 US presidential campaign. Additionally, US Democratic lawmakers are pressing Bitcoin ATM operators to combat rising fraud targeting elderly Americans. Collectively, these events underscore the increasing influence of cryptocurrency on global finance, law, and politics.