Several financial institutions and market analysts have recently revised their expectations regarding the US Federal Reserve’s interest rate policies, forecasting at least two cuts in 2025. This shift in outlook follows disappointing employment data, with only 22,000 jobs added in August, far short of the projected 75,000.
Bank of America has changed its stance, now predicting two 25 basis point rate reductions, one in September and another in December. Goldman Sachs takes a more aggressive approach, suggesting three cuts in the same year, starting in September and continuing through October and November.
In related developments, Trump Media & Technology Group has finalized a significant agreement with crypto exchange Crypto.com to initiate a joint treasury strategy focused on accumulating the Cronos token (CRO). The initial purchase involves 684.4 million CRO tokens, valued at approximately $105 million. This venture aims to create a $6.4 billion crypto treasury and may allow users of Truth Social to earn CRO as part of a rewards program.
Adding to the week’s crypto news, Tron founder Justin Sun has called on World Liberty Financial (WLFI) to unfreeze his token allocation after a blacklisting incident related to suspicious transactions. Sun criticized the decision as a violation of investor rights, underscoring concerns about potential impacts on trust in the project.
Meanwhile, Thumzup Media Corporation, linked to the Trump family, plans to pivot from advertising technology to cryptocurrency mining, targeting annual revenues of up to $103 million based on Dogecoin’s performance. They are set to acquire 3,500 mining rigs as part of this strategy, pending shareholder approval.
In a notable misstep, the US Securities and Exchange Commission (SEC) revealed that a significant portion of former Chair Gary Gensler’s text messages were lost due to “avoidable errors.” An inquiry by the SEC’s Office of Inspector General concluded that a poorly implemented automated policy caused the loss of texts during a critical period for the agency’s crypto enforcement activities.
Bitcoin’s current price stands at $110,822, with Ether at $4,304 and XRP at $2.81, reflecting a total market cap of $3.81 trillion. Among the week’s notable cryptocurrency performers, MemeCore, Story, and Pump.fun saw substantial gains, while World Liberty Financial suffered considerable losses.
On the predictive front, economic analyst Tom Lee of BitMine argued that Ethereum could become a major player if Wall Street increasingly engages with crypto markets, likening the potential shift to a historical financial turning point in 1971.
Conversely, outgoing CFTC Commissioner Kristin N. Johnson warned of the risks associated with prediction markets in her farewell address, stressing the need for clearer regulatory guidelines.
Lastly, Venus Protocol announced the successful recovery of $13.5 million in stolen assets following a phishing attack, illustrating ongoing challenges and advancements in security within the cryptocurrency space. Analysts predict a possible bear market for Bitcoin as its price faces considerable pressure, with bearish trends potentially surfacing as early as October.
