Bitcoin rises amid Fed rate cut. BingX crypto exchange was robbed of $43 million. Ledger and Exodus launch swap aggregator. Visa predicts demand for fiat-linked stablecoins. German bank opens crypto trading
Fed cuts the discount rate: Experts predict a new Bitcoin rally
On Wednesday, September 18, the Fed (the US regulator) lowered the key rate to 4.75-5% per annum, which happened for the first time since 2020. The crypto market responded to this decision with growth.
Bitcoin rose in price, exceeding the $60 thousand mark. As of Monday, September 23, the coin is being traded at $63.6 thousand. Following Bitcoin, other top cryptocurrencies rose in price: Ethereum (+7,14%), Solana (+7,46%), Shiba Inu (+6,6%), NEAR Protocol (+5%).
According to analysts at Standard Chartered, the reduction of the Fed rate can provide steady growth of Bitcoin against the backdrop of an improving macroeconomic situation.
The analyst of the Bitget cryptocurrency exchange Ryan Lee also voiced his forecast. He believes a Fed rate cut could lead to increased liquidity and growing interest in risky assets, including crypto. Ryan predicts that by the end of September, the first cryptocurrency will fluctuate between $57k and $64k, reflecting investor sentiment toward high-risk assets.
Crypto exchange BingX was hacked: Over $43 million in losses
BingX exchange’s hot wallet became a target for hackers, who withdrew more than $43 million. The incident occurred on Friday, September 20.
As a result, the exchange urged users to cancel the access that was previously granted to smart contracts to manage their assets. Withdrawals on the platform were suspended.
The hackers made most transactions through BNB Chain and Ethereum blockchains, withdrawing $9 million and $17 million respectively. Arbitrum, Polygon, Avalanche, Fantom, and Base networks were also affected. The fraudsters converted the stolen money into Ethereum and BNB.
The BingX team is already preparing a plan to recover the stolen funds for the affected customers.
Ledger and Exodus are preparing a profitable alternative to exchanges
Ledger, a hardware wallet manufacturer, and Exodus, a mobile wallet provider, have collaborated to create a new service called XO Swap. It will allow users to exchange thousands of cryptocurrencies by connecting via API to various exchanges.
The new service will be added to the Ledger Live app. Initially, XO Swap will be available only on desktops, and the mobile version will appear later. The main emphasis is on security and user control, making the new service a profitable alternative to exchanges.
The developers note that the service will allow users to conduct exchanges directly from their hardware wallets without exposing their funds to the risks associated with storage on exchanges.
With this integration, Ledger and Exodus aim to increase the convenience and security of cryptocurrency transactions by giving users full control over their assets.
Visa predicts growth in demand for fiat-linked stablecoins
A significant increase in interest in stablecoins linked to traditional currencies is expected in the coming years. This was reported by Kai Sheffield, head of the Visa cryptocurrency division.
According to the expert, dollar-based stablecoins, such as USDT and USDC, dominate the market today, occupying 99%. However, in the future, other stablecoins pegged to currencies other than the dollar may play an important role in international settlements. Rapid conversion between currencies will be key, he said.
Sheffield also emphasized that the creation of new stablecoins is a big plus for international transactions and local payment systems. Countries with high inflation will benefit the most, where stablecoins can become an alternative to traditional currencies.
Sheffield added that 2024 was an important milestone for the adoption of stablecoins, as companies began to actively use them to address foreign employee payments. He also expressed confidence that all major fiat currencies will have digital versions on blockchain in the future.
Germany’s largest bank opens up crypto trading
Commerzbank, Germany’s second-largest bank in terms of branches, is launching cryptocurrency storage and trading services for corporate clients. The initiative will be realized in partnership with Crypto Finance, a subsidiary of Deutsche Boerse Group (German Stock Exchange).
The financial institution received a license to hold cryptocurrencies in November 2023, allowing it to expand its services in this area. The bank anticipates that the addition of digital currencies will open up new opportunities for businesses.
At the same time, Germany’s DZ Bank will also give 700 cooperative financial institutions access to digital assets, thanks to a partnership with Boerse Stuttgart Digital (Stuttgart Stock Exchange). The first banks are already connected, and the product will soon be available to retail customers.
Boerse Stuttgart Digital CEO Matthias Volkel emphasized that their platform offers an infrastructure with full regulatory compliance for trading and storing cryptocurrencies across Europe, making the process safe for all market participants.
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