Trump’s Crypto Project Brings Little Cheer Despite Slightly Above $59K

Bitcoin Price Sees Slight Increase Ahead of Federal Reserve Meeting

Bitcoin’s price experienced a modest rise on Tuesday, as the market anticipates a forthcoming meeting of the Federal Reserve, where interest rate cuts are widely expected.

Despite the release of details regarding a new project by Republican presidential candidate Donald Trump, interest in cryptocurrencies remained subdued. This project is anticipated to be a banking or exchange platform.

As of 08:44 ET, Bitcoin climbed 1.4% to $59,399, sustaining its position within the trading range of $50,000 to $60,000 that has characterized much of the year.

Trump Reveals More About His Crypto Initiative

The team behind World Liberty Financial, a crypto project backed by the Trump family, shared key details during a launch event on social media. The project is expected to function as a crypto banking and exchange platform, featuring a native token called WLFI. Approximately 20% of these tokens will be allocated to the founding team, 17% will be reserved for rewards, and the remaining 63% will be made available for public sale.

During the event hosted on social media, Trump expressed his ambition to establish the U.S. as the "crypto capital" of the world, though he provided limited specifics regarding this vision.

Trump has maintained a largely pro-crypto stance during his campaign for the 2024 presidential election, though he has faced challenges, particularly in comparison to Democratic candidate Kamala Harris, following a contentious debate. While Harris has not revealed much about her own plans for cryptocurrency, she is expected to continue the Biden administration’s regulatory approach toward the industry.

Market Trends: Cryptocurrency Prices Hold Steady as Fed Meeting Approaches

Overall cryptocurrency prices remained stable, with attention shifting to the upcoming Federal Reserve meeting this week. The second-largest cryptocurrency by market capitalization rose 0.5% to $2,314.69, while other notable cryptocurrencies saw slight increases. Among meme tokens, one particular token saw a decrease of 0.5%.

The Federal Reserve is anticipated to announce a cut in interest rates, with traders adjusting their expectations to foresee a potential reduction of 50 basis points, rather than the previously anticipated 25 basis points. Such lower rates are generally favorable for cryptocurrencies as they enhance liquidity for speculative investments, though little price movement has occurred in anticipation of the Fed’s decision.

Bitcoin Mining Profitability Declines Significantly

According to a recent report by JPMorgan, Bitcoin mining profitability, measured by hashprice, has dropped by 2% this month and remains over 50% lower than levels observed prior to the halving event. This decline, along with seasonal adjustments, may hinder near-term growth in the network’s hashrate.

The report highlighted that U.S.-listed miners are now responsible for 26.7% of the network’s total hashrate, marking a record high. Bitcoin mining stocks experienced a downturn in the early part of September as Bitcoin prices lingered below $60,000, while the network’s hashrate increased. The hashrate, which indicates the total computational power dedicated to mining and transaction processing, has risen 4% so far this month, returning to pre-halving levels.

JPMorgan is tracking the market capitalization of 14 U.S.-listed Bitcoin miners, which collectively decreased by 3% since the end of August, now standing just under $20 billion. Among these miners, Hut 8 Corp performed well with an 11% increase, whereas CleanSpark Inc lagged, posting a decline of 12%.