Bitcoin’s price traded near $92,000 on Wednesday but later declined to just below the $90,000 mark, reflecting ongoing volatility despite the Federal Reserve’s 25 basis point rate cut. The price briefly rose above $93,000 yesterday but settled around $90,600 at the time of reporting. This decline followed mixed signals from the Fed, where interest rates were expected to drop from 3.75% to 3.50%, but cautious remarks from Fed Chair Jerome Powell and a 9-3 split among Federal Open Market Committee members dampened investor enthusiasm. Experts have described this as a “sell the fact” reaction, as the market had already priced in the rate cut.
Meanwhile, Vanguard Group has started offering its clients the ability to trade Bitcoin exchange-traded funds (ETFs), marking a significant advancement in access to cryptocurrency products. However, senior leadership at Vanguard expressed skepticism about cryptocurrencies. John Ameriks, head of Vanguard’s Global Quantitative Equity group, stated that Bitcoin should be viewed primarily as a speculative asset rather than a profitable investment. He likened Bitcoin to a viral plush toy, noting that it does not generate income, compounding, or cash flow—factors critical for long-term investing.
Vanguard’s decision to allow Bitcoin ETF trading reflects the growing popularity of these new financial instruments, which launched in January 2024. Additionally, Bitcoin usage is increasing within the U.S. banking sector, with PNC Bank enabling direct Bitcoin trading for clients and Bank of America encouraging digital asset investments ranging from 1% to 4% of client portfolios.
Currently, Bitcoin is priced at approximately $90,115, with around 19.96 million Bitcoins in circulation and a total market capitalization near $1.81 trillion. Cryptocurrency prices worldwide remain volatile, presenting both risks and opportunities for investors.
Source: bitcoinmagazine
