Bitcoin and Ethereum Face Crucial Week as Federal Reserve Decision Looms

Bitcoin and Ethereum: Only 8 Days Left

Börse Online reports that investors have limited time as a showdown for Bitcoin and Ethereum approaches. The critical date is Wednesday evening, September 18th, when the future of cryptocurrencies will be influenced by the US Federal Reserve's interest rate decision. In recent months, both Bitcoin and especially Ethereum have been in a downward trend. Bitcoin has experienced an orderly decline since March 14th, while Ethereum and other altcoins have suffered significantly more.

Hopes now rest on central bank decisions to lower interest rates. On Thursday afternoon, the ECB is expected to cut its rates before the FED likely follows next week with a reduction of 0.25 percentage points. Lowering interest rates could benefit cryptocurrencies as they become more attractive investments, although they are considered riskier assets without generating cash flow.

Investors should focus on buying Bitcoin while being cautious with altcoins like Ethereum until there’s clear evidence of market recovery beyond these eight days.

Ethereum Weakens: Is Vitalik Buterin Selling His ETH Holdings?

According to finanzen.net, rumors are swirling about whether Vitalik Buterin, co-founder of Ethereum, might be losing faith in his own cryptocurrency amid its current downturn. Despite strong performance during the bull markets of 2020/2021 and significant upgrades such as transitioning to Proof-of-Stake (PoS) and launching an ETF based on it, Ether has lagged behind Bitcoin since September last year.

A report from Coincierge suggests Buterin recently transferred $10 billion worth of ETH into a multisig wallet, sparking speculation about potential sales or loss of confidence in ETH.
"I haven't sold any holdings since 2018," clarified Buterin via the X platform, explaining all previous sales were aimed at supporting various projects within or outside the ecosystem, including charitable causes related to biomedical research and development efforts.

Ethereum Layer-2s Becoming Competitors?

An article from FinanzNachrichten.de discusses how improvements made through Proto-Danksharding helped reduce transaction fees, raising questions if reliance on layer-two solutions remains necessary given their rapid growth compared to main chain metrics. Recent trends indicate possible shifts impacting broader adoption scenarios moving forward.

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Article Summary

Investors have only eight days left before the US Federal Reserve's interest rate decision on September 18th, which could significantly impact Bitcoin and Ethereum. Amidst rumors of Vitalik Buterin potentially selling his ETH holdings, hopes rest on central banks lowering rates to make cryptocurrencies more attractive investments despite their inherent risks.