Biden expects interest rates to fall further, and block subsidies will become the main source of income for BTC miners

Headlines

▌Biden: Interest rates are expected to fall further

U.S. President Biden said that the work of fighting inflation has not yet been completed; lowering borrowing costs will help economic growth; interest rates are expected to fall further; the Fed's interest rate cut indicates that the economy and recovery are entering A new stage; he respects the independence of the Fed and has not spoken to Fed Chairman Jerome Powell since entering the White House.

▌Block subsidies have become the main source of income for Bitcoin miners, accounting for more than 98%

The impact of the halving has led to a reduction in fee income, and block subsidies have become the main source of income for Bitcoin miners. On September 13, of the $25.35 million in miners’ daily revenue, only $398,860 came from transaction fees, accounting for just 1.6% of total revenue. This is a significant change from previous periods, when transaction fees peaked at over 40% of miners’ revenue. Analysts say that with block subsidies halving every four years, transaction fees will only grow in importance in terms of cybersecurity. Some advocate for larger block sizes to accommodate more transactions, while others advocate for a layer 2 solution, which could push more settled transactions back to the main chain.

Quotes

As of press time, according to Coingecko data:

BTC's recent transaction price was US$62,888.32, with an intraday increase or decrease+1.3%;

ETH’s recent transaction price was US$2,463.92, with intraday gains and losses+3.3%;

BNB’s recent transaction price was US$566.99, with intraday gains and losses+1.0%;

SOL’s latest transaction price 142.96 US dollars, intraday increase or decrease+5.9%;

DOGE's recent transaction price was US$0.1051, with intraday gains and losses+0.7% ;

XPR’s recent transaction price was US$0.5869, with intraday gains and losses+0.1%.

Policy

▌The German government closed 47 companies suspected of illegal activities Cryptocurrency exchanges linked to activities

German authorities have shut down 47 cryptocurrency exchanges suspected of being linked to criminal activities such as money laundering, saying the transactions The Company willfully fails to perform its obligations to conduct identity and background checks on its customers. Some of these exchanges include Xchange cash, 60cek, Baksman, and other smaller platforms. One of the exchanges has been active since 2012, while the others were established just the year before.

▌A Texas court dismissed Consensys’ lawsuit against the U.S. SEC

Consensys' lawsuit against the U.S. Securities and Exchange Commission (SEC) and SEC Chairman Gary Gensler was dismissed in a Texas court late Thursday. Consensys’ lawsuit, originally filed in April, contains some bombshell news, including allegations that the SEC has launched an investigation into Ethereum and that the regulator has issued wells notices to the company behind MetaMask. "The enforcement action does not constitute final agency action, and the notice neither marks the completion of the agency's (i.e., SEC's) decision-making process nor establishes the plaintiff's legal rights or obligations," the judge said in Thursday's ruling.

Blockchain application

▌Hut 8 and Bitmain launch next generation ASIC mining machine, increase hash rate by 80%

Hut 8 Corp. announced the expansion of cooperation with Bitmain Technology to launch the next generation ASIC mining machine Machine U3S21EXPH. Hut 8 plans to deploy the model via a 15 exahash per second hosting agreement in Q2 2025, leveraging custom data center infrastructure developed in-house. According to the press release, the initial agreement includes approximately 15 EH/s and is expected to increase the hash rate managed by Hut 8 from 18.5 EH/s to approximately 33.5 EH/s, an increase of 80%. Hut 8 stock (ticker: HUT ) was up more than 7% at press time.

▌Polkadot launches "Agile Coretime" to improve network efficiency and scalability

Polkadot releases its important product "Agile Coretime", paving the way for the Polkadot 2.0 upgrade. This feature replaces the previous auction system by dynamically allocating computing resources, improving the efficiency, flexibility, and scalability of the network. Developers can now acquire block space on demand, reducing costs and avoiding network congestion. This change is particularly friendly to start-up projects, lowering the barrier to entry and providing more possibilities for future innovative applications. Polkadot’s core developers said that this move will attract more outstanding projects.

Cryptocurrency

▌View: Bitcoin may break through New high, expected to rise to more than 100,000 US dollars before the end of the year

CoinDesk analysts predict that Bitcoin may be about to usher in a new round of price breakthroughs, based on Based on past market cycles, prices are expected to rise to $108,000 to $155,000. Since reaching a high of $73,000 in March, Bitcoin has experienced a lengthy correction, with many investors believing the market has peaked. However, recent Bitcoin price action has been similar to its performance during two bull markets in 2016 and 2020. Both of those bull markets ended the year with significant gains. This suggests that Bitcoin may be on track to see a similar move again before the end of the year. Despite the weakness since March, Bitcoin is still up 290% since the market low in November 2022, consistent with previous bull cycles. If Bitcoin follows past trends, its price could see a 600% to 900% increase before the end of the year, reaching a range of $108,000 to $155,000.

▌The market value of the “Trump Bitcoin to Buy Burgers” concept coin BURGER exceeded US$4.5 million< /p>

The market value of Ethereum ecological Meme coin BURGER exceeded US$4.5 million, and the trading volume reached US$15 million within 18 hours of the token being online. Earlier today, it was reported that former US President Trump used Bitcoin to purchase a cheeseburger at PubKey, a Bitcoin-themed bar near New York University. Note: There is no actual use case for Meme currency, and the price fluctuates greatly. Users need to invest carefully.

▌There was no inflow or outflow of funds from GBTC and ETHE yesterday

According to Farside Investors monitoring, the U.S. spot Bitcoin ETF and spot Ethereum ETF (September 19) data are as follows: Spot Bitcoin ETF: BTC had a net outflow of US$9.5 million; GBTC had no inflow or outflow. Spot Ethereum ETF: There is no inflow or outflow of funds for ETHE and ETH.

Important economic news

▌U.S. stocks continue to rise, with the Nasdaq rising nearly 3%

U.S. stocks continued to rise, with the S&P 500 index rising more than 2% and setting a new high; the Nasdaq rose nearly 3%, and the Dow rose about 1.5%. Tesla rose more than 7%, Nvidia rose more than 5%, Meta rose more than 3%, and Netflix, Microsoft, and Google rose more than 2%.

▌Standard Chartered Bank: Bitcoin and the broader crypto market will continue to rise after the Fed cuts interest rates< /p>

Standard Chartered Bank analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve’s recent interest rate cut, which will be driven more by favorable macroeconomic conditions than Driven by the results of the U.S. presidential election. “Digital assets topped the list in terms of performance for the first time following the FOMC meeting,” Kendrick noted in an email on Thursday. “This remains the case despite Polymarket showing Kamala Harris with a 52/47 approval rating today.” He Attribute this positive performance to macroeconomic drivers starting to overwhelm election-related uncertainty. Kendrick insists that the U.S. presidential election does not have as big an impact on Bitcoin prices as it did in the past. “While the U.S. election is important, macro drivers are starting to take over,” he said. Kendrick said he is monitoring the difference between short-term and long-term U.S. Treasury yields as an indicator of market conditions favorable to digital assets. . “I looked at the U.S. 2s10s curve, and a steeper U.S. yield curve is good for digital assets.”

▌S&P: Emerging market central banks are expected to continue/start cutting interest rates in late 2024 and early 2025

S&P said it expects emerging market central banks to continue/begin to cut interest rates in late 2024 and early 2025 to boost domestic demand. U.S. economic uncertainty, geopolitical risks, and political uncertainty may create the basis for future market volatility.

▌Former U.S. Treasury Secretary Summers: Interest rate cuts in the next few years are not expected to be as severe as the Federal Reserve’s forecast

Former U.S. Treasury Secretary Summers said that inflation may cause the Federal Reserve to cut interest rates less than expected in the next few years. "In terms of monetary policy, for the Fed to actually cut interest rates as much as it forecasts, it faces the risk of rising inflation," he said. The median federal funds rate forecast by Fed policymakers in the latest dot plot for the end of next year is 3.4%. , equivalent to a possible 150 basis point interest rate cut on top of the 50 basis point rate cut announced on Wednesday. Summers said once inflationary pressures return, interest rates won't fall as much as officials predict on the dot plot. He reminded that investors also overestimated the Fed's subsequent easing efforts.

Golden Encyclopedia

▌What is the Ethereum Prague-Electra (Pectra) upgrade?

Ethereum’s Pectra upgrade combines two separate upgrades: the Prague upgrade and the Electra upgrade. The Bragg upgrade focuses on changes to the network’s execution layer, while the Electra upgrade affects the consensus layer. When combined together, these upgrades are collectively referred to as the "Pectra" upgrade. The Pectra upgrade will follow "Dencun", a merger of the Deneb and Cancun upgrades, taking place in March 2024. Technically, Dencun is an Ethereum hard fork designed to reduce transaction fees for Layer 2 solutions. Pectra is a new milestone on the Ethereum development roadmap, scheduled to go live in the first quarter of 2025. This timeline allows for the inclusion of additional features to improve the Ethereum user experience (UX).

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and not as actual investment advice. Please establish a correct investment philosophy and be sure to increase your risk awareness.