Daily Crypto Signals: Bitcoin Retreats to $110K Despite Fed Rate Cut, Ondo Expands Tokenized Assets to BNB Chain
Bitcoin fell to $109,200 before reclaiming $110,000 following the Federal Reserve's widely anticipated 25bp interest rate cut, with traders
Quick overview
- Bitcoin fell to $109,200 before recovering to $110,000 following the Federal Reserve's 25bp interest rate cut, highlighting concerns about broader economic issues.
- Ondo Global Markets expanded its tokenization platform to BNB Chain, offering over 100 tokenized US stocks and ETFs to 3.4 million daily users.
- Despite short-term volatility, historical trends suggest November could be a strong month for Bitcoin, with analysts predicting potential price increases.
- The Kyrgyzstani government's choice of BNB Chain for its national stablecoin project underscores the growing acceptance of blockchain technology in traditional finance.
Bitcoin BTC/USD fell to $109,200 before reclaiming $110,000 following the Federal Reserve’s widely anticipated 25bp interest rate cut, with traders focusing on macroeconomic headwinds beyond monetary policy. Meanwhile, Ondo Global Markets expanded its real-world asset tokenization platform to BNB Chain BNB/USD, bringing over 100 tokenized US stocks and ETFs to 3.4 million daily users.
Crypto Market Developments
On Wednesday, the cryptocurrency market got contradictory signals as institutional news battled with short-term price pressures. The Federal Reserve did what everyone thought it would and lowered rates by a quarter point. However, Bitcoin’s price movement showed that investors were more worried about the economy as a whole than just monetary policy. The statement brought the target Federal Funds rate to 3.75%–4%, which was another step in the central bank’s cycle of easing that started in September.
More and more people in the market disagree on what to do next. Federal Reserve Chair Jerome Powell’s statements show that there is disagreement within the Fed over a possible rate cut in December. Bitcoin dropped about 2.4% after the FOMC statement because of this uncertainty. The rest of the digital asset market followed suit, showing that traders were hesitant because of mounting worries about the economy, such as dismal jobs statistics and continued trade tensions between the US and China.
Even though there was a lot of volatility in the short term, institutions continued to use blockchain technology. Grayscale Investments started their staking-enabled Solana ETF with $102.7 million in assets. This puts them in the running alongside Bitwise to give institutional investors access to Solana SOL/USD. Also, Ethereum’s Fusaka update went online on its last testnet, getting the network ready for better scalability when it goes live on mainnet December 3rd. As Ethereum ETH/USD advances toward parallel execution capabilities, the patch adds Peer Data Availability Sampling and makes gas limits better.
Bitcoin Dips to $110,000 After FOMC
Bitcoin’s drop to $109,200 is a 6% drop from Monday’s rise to $116,400. This surprised several traders because the 25 basis point rate cut was already priced into the markets. Matt Mena, a market analyst at 21Shares, said that investors had already “fully priced in” the rate decrease decision since they had expected it to happen. But the sell-off sped up when Powell’s statements showed that the Federal Reserve was very divided, with at least one regional Fed president disagreeing with the decision.
The price movement that doesn’t make sense implies that traders are thinking about more than just short-term monetary policy and are also thinking about long-term economic issues. The labor market remains weak, inflation worries are still high, and there is a lot of uncertainty about President Trump’s trade policy. These are the main things that are making risk assets less valuable. Michael Pearce, deputy chief US economist at Oxford Economics, said that “the unexpected hawkish dissent from a regional Fed president shows that future moves are becoming more contentious.” This could mean that crypto market liquidity will be more difficult to get in the future.
Even while there is pressure in the short term, historical trends and analyst predictions give us some hope. November has been one of Bitcoin’s best months in the past. In the last twelve years, it has made money in eight of them, with an average gain of 46.02%. Mena still thinks that there is a “moderately risk-on” view and that “there is a credible path for Bitcoin to break its all-time high before year-end.” According to data from the Chicago Mercantile Exchange, more than 56% of people in the market think there will be another rate decrease in December. However, the developing divide inside the Fed may make this less likely.
The Federal Reserve’s announcement that it will stop quantitative tightening on December 1st and stop shrinking its balance sheet was a big deal that happened at the same time as the rate cut. Goldman Sachs and other major banks say that there will be at least two further 25 basis point reduction by June 2026. This would put the benchmark rate between 3% and 3.25%. However, Hyblock analysts say that the most recent FOMC meetings have routinely caused Bitcoin prices to decline at first and then rise again. This could give investors a chance to buy when they see optimistic indications like bid-heavy order books.
Ondo Launches 100+ Tokenized Stocks on BNB Chain
By launching over 100 tokenized US equities and ETFs on BNB Chain, Ondo Global Markets has greatly increased its presence in the real-world asset tokenization industry. With 3.4 million daily active users, BNB Chain’s integration gives them access to Wall Street securities through blockchain technology. PancakeSwap is the main decentralized exchange for exchanging these tokenized assets. This development is a big step toward Ondo’s goal of making traditional financial markets more accessible to investors all around the world, especially in Asia and Latin America, where it is still hard for brokers to get to US markets.
The switch to BNB Chain comes around two months after Ondo’s tokenized stock solution went live on Ethereum. So far, it has locked up more than $350 million in value and had almost $670 million in on-chain trading volume. RWA.xyz says that since its introduction in July 2021, Ondo has become one of the biggest platforms for tokenizing real-world assets. Onchain, it has tokenized $1.8 billion worth of assets and has about 28,370 holders of Ondo-tokenized financial goods. The BNB Chain team said that tokenized stocks “turn real-world financial products into blockchain-based assets—making them accessible 24/7, transparent, and efficient.”
Last Friday, the Kyrgyzstani government chose BNB Chain to build its national stablecoin project, which added to the proof of the partnership between Ondo and BNB Chain. The decision was made at the second annual meeting of the country’s top blockchain committee. At same meeting, officials also announced intentions to launch a digital currency for the central bank. Changpeng Zhao, the former CEO of Binance, was at the conference. He said that Kyrgyzstan would connect Binance Academy with ten of the country’s best universities and make the Binance app available to all 7.2 million of its residents. This government support shows that more and more institutions are accepting blockchain technology for traditional financial infrastructure. It also puts BNB Chain in a strong position to compete in the battle to connect traditional and decentralized banking.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save