Crypto Market Overview
Bitcoin price dropped below $60,000 during European trading ahead of the widely anticipated first interest rate cut by the Federal Reserve in four years. Lower borrowing costs have historically been a bullish driver for risk assets like cryptocurrencies, but traders are pricing in a 65% chance of a 50 basis-point cut, which could signal concern about the economy.
Ether Performance
After an uninspiring performance in 2024, Ether, the world's second-largest cryptocurrency, could be a contrarian bet heading into the year-end. While BTC is up 30% and SOL 31% this year, ETH has remained relatively flat, though it remains the domain for the majority of stablecoins and 60% of all DeFi assets.
New Stablecoin Introduction
BitGo plans to introduce a dollar-backed stablecoin called USDS next year, differentiating itself in the crowded stablecoin market by offering rewards to institutions that provide liquidity to the network. The stablecoin will be backed by short-duration Treasury bills, overnight repos, and cash, and BitGo will distribute a portion of the returns generated from its reserves to participants on a pro-rata basis.
The information provided in this article is for informational and educational purposes only, based on news and sources gathered from the internet. This content should not be considered as investment advice, financial guidance, or a suggestion to buy or sell any digital assets. Before making any financial decisions, we recommend consulting with a professional financial advisor and conducting your own research. The author and the blog are not responsible for any losses or damages that may arise from using this content.
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