Bitcoin: $62.880
Fear & Greed Index: 52-Neutral
The Fear & Greed Index is at 52, reflecting a neutral market sentiment. Neither excessive fear nor greed is currently dominating the crypto market.
Interest Rate Shift in the U.S.: Federal Reserve Lowers Interest Rate – Crypto Market Reaction
For the first time in four years, the U.S. Federal Reserve has lowered the key interest rate. According to a press release, the rate has been reduced to 5.0 percent. Fed Chair Jerome Powell stated that the decision aims to maintain price stability without risking a rise in unemployment. The crypto markets responded positively: Bitcoin increased by 2.9% to $62,080, Ether rose by 3.8% to $2,420, and Solana saw a 5.6% gain, reaching $138.30.
The rate cut was largely anticipated, with 61% of market participants expecting two rate cuts. A key factor in the decision was the development of consumer prices, which rose by 2.5% in August compared to the same month last year. Powell emphasized that this measure was also influenced by the record-high U.S. national debt.
German Authorities Shut Down 47 Illegal Crypto Exchanges Due to Shadow Economy
German federal authorities have closed 47 illegal crypto exchanges suspected of supporting criminal activities. These exchanges are accused of knowingly facilitating money laundering and building a „shadow economy“ for cybercriminals. Users of these exchanges reportedly included ransomware extortionists and black market traders who funneled criminal funds into the regular financial system.
The Federal Criminal Police Office (BKA) clarified that it had seized the servers of the affected exchanges, including development and operational servers. A prominent warning appeared on the websites of the confiscated exchanges: „We have your data, and therefore, you as well.“ Despite this action, prosecution is complicated as many operators and users are located abroad.
One of the affected platforms, Xchange.cash, had been active since 2012 and had processed nearly 1.3 million transactions. Until recently, the German government was one of the largest holders of Bitcoin, selling 50,000 BTC worth $3.15 billion in June and July.
Donald Trump Becomes First U.S. President to Buy Burgers with Bitcoin
At a New York restaurant known for accepting Bitcoin, Donald Trump became the first former U.S. president to use the cryptocurrency for a transaction. The Republican presidential candidate visited Pubkey, where he purchased burgers with Bitcoin and distributed them to those present. These „Bitcoin burgers“ became a humorous highlight of his campaign stop.
The event took place just days after Trump announced plans to launch a token through the crypto platform World Liberty Financial, run by his family. Although Trump previously called Bitcoin a „scam,“ he has changed his stance during his current campaign and publicly voiced support for BTC mining.
It has not been confirmed whether the transaction was processed via the Lightning Network. Reports suggest Trump holds cryptocurrencies worth at least $1 million.
