Daily News | Market is Generally Declining, Trump's Speech Repeats Embracing Cryptocurrency

2024-09-06, 04:18

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## Crypto Daily Digest: BTC ETFs continued to experience large outflows, Trump promises to embrace cryptocurrency
According to Farside Investor data, the net outflow of US <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETFs was $2111.6 million yesterday. Among them, Fidelity FBTC had a net outflow of $149.49 million, Bitwise's BITB had a net outflow of $30 million, and Grayscale GBTC had a net outflow of $23.22 million. BlackRock IBIT has no inflow/outflow of funds.

Yesterday, the overall trading volume of the US spot <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF was extremely low, with a Grayscale ETHE outflow of $7.4 million and a Grayscale ETH inflow of $7.2 million.

**Fed Megaphone: Rising unemployment rate may gain wider support for a 50bp rate cut**

Nick Timiraos, the Fed Megaphone, stated that Friday happens to be the last day before Federal Reserve officials enter the pre meeting silence period. Federal Reserve Governor Williams and Federal Reserve Governor Waller are scheduled to give speeches after the employment report is released, which is the last chance to set expectations for the upcoming meeting. As economic growth and inflation slow down, it is more reasonable for the Federal Reserve to raise interest rates from around 5.3% to around 4.5%.

If there is no indication that the employment slump in July will continue into August, some Federal Reserve officials may resist a significant 50 basis point rate cut. But officials who are open to cutting interest rates at the July meeting may support a 50 basis point rate cut in September. If the unemployment rate jumps again and employment growth slows down further, they will receive broader support.

**Trump promises to embrace 'future industries' such as cryptocurrency and artificial intelligence**

According to CoinDesk, Trump reiterated in a public speech at the Economic Club in New York on Thursday that if re-elected as president, he will build the United States into the world's crypto capital and embrace "future industries" such as cryptocurrency and artificial intelligence. He said, "We will not attack future industries, but will embrace them, including making the United States the world capital of cryptocurrency and Bitcoin.“

In a one hour speech, Trump outlined his plan to reform the US economy after his re-election, including cutting regulations and promoting growth in domestic energy production. Trump also stated that he will adopt Musk's suggestion to establish a government efficiency committee responsible for auditing federal government spending, identifying waste, and proposing to lead the committee.

**Ether Turns to POS on Second Anniversary, Lags Bitcoin by 44% in Performance Over the Same Period**

According to a CryptoQuant analysis report, since switching to proof of stake networks, Ethereum has lagged behind Bitcoin by 44% during the same period. Analysts suggest that Ethereum may further decline due to reduced online activity and increased supply. Next week marks the second anniversary of Ethereum's transition to a proof of stake network. Despite the approval of the Ethereum spot ETFs in the United States on July 23, Ethereum's performance continues to underperform Bitcoin, with the ETH/BTC exchange rate currently at 0.0425, the lowest level since April 2021.

CryptoQuant research director Julio Moreno said, "Since the merger, Ethereum's performance has also been inferior to altcoins such as <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> and <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a>, lagging behind by 53% and 18% respectively." CryptoQuant analysts added, “Ethereum is still above the undervalued zone. We estimate that using Bitcoin as the exchange rate, Ethereum would need to drop to around 0.02, or a 50% drop, in order to enter the undervalued zone.”

CryptoQuant analysts also emphasized the unfavorable supply dynamics for Ethereum prices: "Since early April, shortly after the latest Dencun upgrade, the total supply of Ethereum has been continuously increasing. Currently, the total supply is 1,203.23 million coins, the highest level since May 2023.”

## Market Trends: BTC fluctuated and fell, and there are currently no hot topics in the Altcoin market
### Mainstream Coins
After a brief rebound, BTC's current price has fallen to around $56,500. BTC ETF (exchange traded fund) continues to experience large outflows of funds, and it is expected that Bitcoin will continue its volatile downward trend. Investors should remain cautious, pay attention to market dynamics, and avoid blindly buying at the bottom.

The <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">ETH price</a> fell below $2,400. Since the launch of ETH ETFs, there has been a continuous net outflow of funds, and the selling pressure of Grayscale ETHE (Grayscale Ethereum Trust Fund) will continue to suppress the rise of Ethereum. In the short term, ETH may struggle to escape downward pressure, and investors need to closely monitor market changes.

The Altcoin market is generally declining, with scattered market funds and only a few tokens performing well. Overall, the sentiment in the Altcoin market is sluggish, and investors should be cautious in choosing investment targets and avoid holding positions in high-risk assets.

### Data Indicators
AHR999 Index: Today's AHR999 Index is 0.57, getting closer and closer to the bottom buying range. This indicates that the overall market valuation is low and there are certain investment opportunities.

Fear & Greed Index: The current Fear & Greed Index is 22, indicating that the market's fear sentiment is becoming increasingly severe. Investor sentiment is low, and the market may continue to fluctuate downward in the short term.

### Market Hotspots:
GameFi sector: BIGTIME saw its highest intraday increase of over 40% yesterday, but the current price has fallen back. Despite the significant increase in BIGTIME, its price has dropped by 90% compared to last year's historic high. This is almost the historical destination of GameFi tokens. In the early stages of the GameFi project's launch, with the increase in the number of players and the stimulation of in-game mechanisms, token prices usually spiral upwards. However, this is accompanied by game bottlenecks, leading to a decline in both the number of players and token prices. The spiral upward cycle often lasts only 1-2 months, and investors need to focus on risk management when participating in such projects to avoid entering at high points.

## Macroeconomics: The three major US stock indices have fluctuated, with Tesla continuing its upward trend to 7%
The three major indexes of the US stock market have fluctuated, with the S&P 500 index falling 0.30% to 5,503.41 points; The Dow Jones Industrial Average fell 0.54% to 40,755.75 points; The Nasdaq index rose 0.25% to 17,127.66 points. The benchmark 10-year Treasury yield is 3.73%, and the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 3.75%.

Among the popular US stocks, Apple rose 0.69%, Microsoft fell 0.13%, Nvidia rose 0.94%, Google C rose 0.50%, Google A rose 0.51%, Amazon rose 2.63%, Meta rose 0.80%, TSMC rose 1.71%, Tesla rose 4.90%, and AMD fell 1.02%.

On Thursday, the latest data released by the United States further showed signs of cooling in the labor market, coupled with weak manufacturing data earlier this week, which has made the market increasingly concerned that the US economy will fall into recession. In this context, the market has increased its bet on a 50 basis point rate cut by the Federal Reserve in September, which is also supported by JPMorgan Chase.

The Federal Reserve will make a decision on the direction of interest rates on September 17-18.

### Conclusion
Overall, the current market sentiment is sluggish and the overall trend of the market is not optimistic. Bitcoin and Ethereum are facing ETF fund outflow and selling pressure respectively, making it difficult to shake off the downward trend in the short term. The Altcoin market is generally declining, and investors should be cautious when choosing investment targets. Meanwhile, despite occasional highlights in the GameFi sector, its price fluctuations are severe and investment risks are high. Investors are advised to closely monitor market trends, allocate assets reasonably, and avoid blind operations.

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<div>Author:**Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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