Bitcoin Faces Pivotal Week as Fed Rate Cut and $1.5 Billion Treasury Plan Loom

Bitcoin is facing a crucial week as investors monitor the Federal Reserve's anticipated rate cut. A significant development in traditional finance involves Asset Entities' merger with Strive Enterprises to create a Bitcoin treasury company.

  • Over $7 trillion from U.S. money market funds may flow into cryptocurrencies if the Fed cuts rates.
  • Asset Entities shares surged after shareholders approved the merger on September 9.
  • The new entity, Strive Inc, aims to raise $1.5 billion to acquire Bitcoin, potentially making it a top ten public corporate holder.
  • The capital raise will consist of $750 million from a private investment and $750 million from warrant exercises.
  • This amount could fund the acquisition of about 13,450 BTC at current prices.
  • Strive has ambitions to acquire 75,000 BTC linked to claims from the collapsed Mt. Gox exchange.
  • The merger is poised to enhance Strive's Bitcoin-per-share ratio.

As the Fed prepares for its first rate cut of this cycle, markets expect a reduction of 25–50 basis points. Historical patterns suggest that lower rates could attract fresh capital to Bitcoin.