🤯 FED's Mega Rate Cut: Can Crypto Hit the Moon 🌕?

Good Morning!

The Fed just slashed rates by 50 basis points, landing us in the 4.75-5% range. The markets responded like a kid on a sugar rush – the S&P 500 hit a record high before taking a breather, while the Nikkei and Aussie shares are partying like it's 1999. Meanwhile, the dollar dipped then rebounded, and gold's shining brighter than a disco ball. Powell's keeping it cool, though, reminding us this isn't a new trend.

In today’s email:

• FedWatch: 50bp rate cut done, another 50bp before year end?

• Bitcoin: Bitcoin back above $62k, time for next leg up?

• BlackRock: Calls Bitcoin a “Unique Hedge” in new whitepaper

• Gold: New ATH $2600/oz 🚀

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THE BIG IDEA

The Fed's bold 50bp rate cut signals a shift towards easing, sparking market reactions and debates about future economic prospects

The Fed just dropped a bombshell that's shaking things up. In a move that's got everyone talking, they've slashed interest rates by a whopping 50 basis points, bringing us down to the 4.75%-5.00% range. It's like they've hit the economic reset button, and boy, are we feeling it.

Powell's not messing around this time. He's made it clear that this isn't just a one-off – it's the start of a whole new ballgame. The Fed's crystal ball is showing another 50bp cut this year, with more to come in 2025 and 2026. Talk about planning ahead!

But here's where it gets juicy:

Not everyone's on board with this. We've got our first Fed governor dissent since 2005, with Michelle Bowman preferring a gentler approach. It's like watching a high-stakes poker game, and Powell's just gone all in.

The markets? They're doing the cha-cha. Stocks hit record highs before taking a breather, the dollar's playing hard to get, and Treasury yields are doing their own little dance. It's a financial fiesta out there!

Now, here's the million-dollar question: Is this the Fed's way of averting a recession, or are they seeing storm clouds we can't? With unemployment at 4.2% and the economy still purring along, some folks are scratching their heads. But Powell's got his eye on the prize – he's aiming for that sweet spot where inflation's tamed and jobs are plentiful.

One thing's for sure – it's going to be one heck of a year in the financial world. Keep your eyes peeled, your portfolios ready, and maybe, just maybe, we'll all come out on top.

Here's a link to the full press release for those interested!

MARKETS AT A GLANCE

TOP NEWS

Ray Dalio warns of economic challenges as Fed cuts rates amid massive U.S. debt

The Fed's 50bp rate cut has Ray Dalio sounding the alarm. With the U.S. drowning in $35.3 trillion of debt, the Bridgewater bigwig says we're in uncharted waters. Dalio's crystal ball shows a future that looks a lot like Japan's playbook – think artificially low rates and a weaker currency. His advice? Steer clear of debt assets.

Billionaire John Paulson threatens market exit if Harris wins presidency, citing economic concerns

Hedge fund titan John Paulson's dropping bombshells about the upcoming election. If Harris clinches the presidency, he's threatening to go full Scrooge McDuck – diving into a pool of cash and gold. Why? He's spooked by her proposed policies, especially that sneaky unrealized gains tax. Paulson's crystal ball shows market crashes and recessions if Harris takes the reins. Meanwhile, he's singing Trump's praises louder than a Vegas showgirl!

SEC approves half-penny stock pricing to reduce investor costs and improve market efficiency

The SEC's throwing us a bone with their latest market shake-up. Starting November 2025, you might see some of your favorite stocks sporting fancy half-penny price tags. It's all about tightening those bid-ask spreads and putting more pennies back in your pocket. With up to 1,700 stocks getting this VIP treatment, from Ford to Snap, it's like a financial facelift for the market. Gensler's not messing around – he's determined to make trading cheaper than your morning coffee!

CRYPTO

BlackRock Calls Bitcoin a "Unique Hedge" Against Global Risks

BlackRock's new whitepaper highlights Bitcoin's role as a "unique diversifier" and hedge against fiscal, monetary, and geopolitical risks. The firm notes Bitcoin's minimal correlation to traditional macro factors, making it a "flight to safety" during global uncertainty. While volatile, Bitcoin has outperformed other asset classes in seven of the last ten years. BlackRock emphasizes Bitcoin's potential as a global monetary alternative, especially as concerns over the U.S. dollar grow.

Bitcoin Holds Steady Above $60K Amid Post-FOMC Volatility

Bitcoin (BTC) remained above $60,000 despite heavy volatility after the Federal Reserve confirmed a 50 basis point rate cut. BTC initially surged past $61,000 but retraced before stabilizing. And currently back above $62k. Market sentiment is cautiously neutral, with key moving averages supporting the price. Altcoins struggled, with Ethereum down 0.16% and other tokens showing mixed performances following the Fed's announcement.

Bitwise exec defends Ethereum as the "Microsoft of blockchains" despite current market sentiment

Ethereum's getting more shade than a beach umbrella, but Bitwise's Matt Hougan says the haters might end up with egg on their faces. Sure, ETH's price is flatter than week-old soda, but it's still the cool kid's blockchain for developers and big companies. With 50% of stablecoins and 60% of DeFi assets, Ethereum's like the blockchain world's Microsoft – not always trendy, but always there. Hougan's betting on an ETH comeback, especially with the U.S. election on the horizon. Contrarian play, anyone?

Fintech giant Revolut reportedly developing its own stablecoin, joining a growing trend in the crypto space

Revolut, the fintech darling with a fresh UK banking license, is reportedly cooking up its own stablecoin. It's like they're joining the crypto cool kids' table, rubbing shoulders with PayPal and Ripple. With Tether raking in billions, it's no wonder Revolut wants a slice of that sweet, stable pie. The company's playing coy, but insiders say they're already knee-deep in development. Could this be the next big thing in borderless banking? Stay tuned!

GOLD

Gold Spikes to $2,600 After Fed Cuts Rates by 50 Basis Points

Gold surged $30 to briefly touch a record $2,600 per ounce after the Federal Reserve cut interest rates by 50 basis points. The rate cut exceeded many economists' expectations, driving bullish bets on gold futures. Gold later pulled back to $2,564 as speculators reduced positions. Silver also rose, hitting a nine-week high above $31 per ounce, before retreating below $30. Central bank demand continues to support higher gold prices.

DAILY ECONOMIC CALENDAR (ET)

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