According to GoldPrice.org, the price of gold hit an all-time high of $2,629 per ounce on September 23 after rising more than 5% over the past two weeks. The significant jump in the commodity followed the Federal Reserve’s 0.5% interest rate cut on Wednesday, September 18, providing a tailwind for the precious metal. Bitcoin (BTC), often referred to as digital gold, is also on the rise, with its price up 8.5% since the Fed’s rate decision. The asset hit an intraday and four-week high of $64,660 during early trading on September 23, according to CoinGecko. According to a recent report from digital asset trading platform Bitfinex, this price increase was largely driven by the Federal Reserve’s decision to cut interest rates, which helped propel BTC to a new local high of $64,200 on September 20.
However, despite this positive momentum, Bitcoin is still just below the critical resistance level of $65,200 set on August 25. The report notes that the failure to break this level may confirm a worrying trend that has characterized BTC’s price action since reaching an all-time high of $73,666 in March. Since that peak, Bitcoin has repeatedly attempted to break past previous highs before making new local lows, indicating a sustained downtrend. This pattern of lower highs is evident on Bitcoin’s daily chart, suggesting that the cryptocurrency has been on a downward trajectory since mid-March.
One notable issue that Bitfinex is finding is the discrepancy between the rise in the price of BTC and the open interest in future markets. As BTC has risen, open interest has grown even faster, reaching $19.43 billion – up from $18.93 billion on August 25 – while the price of Bitcoin has remained about $1,000 below its local high. This discrepancy suggests that much of the recent price movement may be due to speculative trading in futures and perpetual contracts, rather than strong demand in the spot market. Earlier this month, Bitfinex noted that Bitcoin’s rise to around $62,000 was largely driven by heavy buying in the spot market, a stark contrast to the current situation. While this trend in open interest may indicate increased speculative interest in Bitcoin, it does not directly imply bearish sentiment. The report states that open interest is not a definitive measure of leverage in the market; it simply reflects the total value of outstanding contracts.
Ethereum is currently trading at $2,666.83 with a market cap of $320,679,024,820 and a trading volume of $20,178,830,343 over the past 24 hours, a significant increase of 68.83%. Speaking of Ethereum’s bullish move, ETH has been steadily moving in an upward direction over the past seven days, bouncing back to $2,700. This renewed interest could be due to the broader positive sentiment in the crypto space, as the market has shown resilience and continued growth.
Toncoin (TON) price action is out of proportion to the current state of the Telegram ecosystem. The coin has recently seen a sharp rise in price, while the TON ecosystem has been caught succumbing to regulatory pressure. As it stands, regulators have demanded that the social media platform make public the IP addresses of its users, a demand the platform may soon comply with. That is, the situation with Telegram raises serious concerns that could ultimately impact the TON protocol. In addition to his previous statements, Durov emphasized that Telegram search is intended to find friends and discover news, not to promote illegal goods. While this move may hinder Telegram’s vision of protecting free speech, Durov believes it is the best step that can be taken.
Durov’s decision to take the matter seriously comes just weeks after he was detained and blamed for the poor decisions of some Telegram app users. He spent several days with French authorities and, upon his release, promised to improve the overall use of the social network. Meanwhile, TON is currently trading at $5.68 after rising 6.37% and 5.17% over the past 24 hours and week, respectively. This suggests that regulatory hurdles have yet to impact the price, a trend that could reverse over time. If not addressed, this move could have a long-term impact on TON.
Cutting interest rates make assets with yields tied to the Fed’s rates, such as short-term government bonds, less attractive, while inflation hedges like gold are becoming a popular diversification option. Global geopolitical risks such as Russia’s ongoing special military operation in Ukraine, the war between Israel and Hamas, and the upcoming U.S. presidential election in November have also increased appetite for gold investments. In addition, gold purchases by global central banks have tripled since Russia began its special military operation in Ukraine in early 2022, according to a Sept. 12 report from Goldman Sachs. Researchers at the Wall Street investment bank have predicted that gold prices will reach $2,700 by early 2025, helped by further rate cuts by the Federal Reserve. However, gold has yet to surpass its inflation-adjusted price, which peaked at $3,200 in 1980, according to Peter Boockvar, chief investment officer at Bleakley Financial Group.
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