According to CoinDesk: Bitcoin continues to maintain its position above $58,000 as the market prepares for a potential significant interest rate cut by the Federal Reserve. As of Sept. 18, the odds of a 50 basis point (bps) rate cut have jumped to 67%, a sharp rise from the 25% probability seen just a month ago. The outcome of the Federal Open Market Committee (FOMC) meeting is expected to have a strong influence on risk assets like Bitcoin and other cryptocurrencies.
Currently, Bitcoin (BTC) is trading around $58,480, showing little change in the past 24 hours. Other cryptocurrencies like XRP, SUI, and Fantom (FTM) have seen modest gains, with FTM surging by 10.5% due to optimism surrounding its rebrand to Sonic. Daily inflows into Bitcoin exchange-traded funds (ETFs) reached $12.9 million, primarily driven by BlackRock's IBIT.
Market Anticipates Fed's First Rate Cut in Four Years
The upcoming FOMC meeting is expected to mark the beginning of the Federal Reserve's first interest rate cuts in four years. The market anticipates that this so-called easing cycle will support risk assets like Bitcoin, which historically benefit from increased liquidity. As of the Asian morning on Sept. 18, traders are assigning a 67% probability of a 50 bps rate cut to bring interest rates to the 4.7%-5% range, a notable jump from Monday's 50% and the previous month's 25%.
On Polymarket, predictions suggest a 57% chance of a 50+ bps rate cut, while a 41% probability is assigned to a smaller 25 bps cut. Regardless of the Fed's decision, the cryptocurrency market is bracing for increased volatility in the coming days.
Trump’s World Liberty Financial to Launch Governance Token
In a separate development, World Liberty Financial, a crypto platform endorsed by former U.S. President Donald Trump, announced plans to launch a governance token (WLFI) exclusively for accredited U.S. investors. The team behind the project confirmed the token's launch during a two-hour livestream, though Trump himself did not discuss the token in detail.
The WLFI token will serve governance purposes, giving token holders the right to propose and vote on matters related to the platform. However, the token is not intended for economic gain, and the team refrained from providing a specific launch date during the livestream.
Real Estate-Backed Yield on Figure Markets Exchange
Meanwhile, Figure Markets, founded by SoFi co-founder Mike Cagney, launched its crypto exchange at the Token2049 event in Singapore. The platform offers a unique value proposition by generating yield through real-world assets (RWAs), specifically home equity loans. Figure claims to offer up to 8% returns on non-USD and stablecoin balances by lending pooled funds to Figure Technologies, which then issues secured home equity loans.
Figure’s model creates a spread between borrower interest payments and investor returns, offering dual recourse protections, daily liquidity, and interest payments based on the length of the investment. While RWAs have become an emerging trend in the crypto space, few projects have successfully integrated them into yield-generation models. Figure Markets aims to fill this gap by leveraging real-world assets to offer stable returns to its users.
In 2023, before launching Figure Markets, Cagney withdrew the company's bid for a U.S. federal bank charter following regulatory scrutiny, opting to focus on partnerships with existing banks instead.
As Bitcoin remains relatively stable at around $58,000, all eyes are on the Federal Reserve’s rate decision, which could shape market dynamics in the near term. With growing anticipation of a larger-than-expected rate cut, Bitcoin and other cryptocurrencies could experience significant movement in the days ahead. Meanwhile, the unveiling of the World Liberty Financial token and the launch of Figure Markets signal the continued evolution of the crypto landscape, with both projects focusing on unique governance and yield-generation models.
