Daily News | BTC Surged, Meme Sector Led the Market

2024-09-20, 05:03

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## Crypto Daily Digest: BTC ETF resumed large inflows, Sky announced divestment of WBTC
According to Farside Investor data, the US spot <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETF had a net outflow of $52.83 million yesterday, including a net outflow of $8.13 million from GBTC and $43.41 million from ARKB. BlackRock IBIT has no inflow or outflow of funds.

The US <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> spot ETF had a net outflow of $9.71 million yesterday, with a grayscale ETF outflow of $14.7 million and a BlackRock ETF net inflow of $4.95 million.

**Data: Bitcoin short-term holders' 30 day increment has dropped to the lowest level since 2012, potentially hindering price breakthroughs**

CryptoQuant data shows that the 30 day increment of short-term holders (STH) of Bitcoin has dropped to its lowest level since 2012. CryptoQuant research director Julio Moreno stated that this may limit Bitcoin's ability to break through the current price range.

The data shows that the supply of Bitcoin is shifting towards long-term holders (LTH), which refers to addresses held for more than 155 days. Although the accumulation of Bitcoin by long-term holders is a prerequisite for price appreciation, Moreno emphasized that Bitcoin still needs new demand from short-term holders to maintain price increases. Moreno added, “We have not yet seen significant new demand from short-term holders.”

**Sky's proposal to divest WBTC has been approved and will be implemented starting from October 3**

The lending platform Sky (formerly MakerDAO) has approved a proposal to divest $200 million of its WBTC collateral asset exposure. The voting started on Monday and lasted for three days, with 88% of participants voting in favor of abandoning wBTC and proposing five separate proposals to implement a five step exit process. About 12% of people abstained. After the vote, Sky will proceed with the offline work of WBTC, with the first phase starting on October 3rd and the final phase ending on November 28.

BA Labs mentioned in its proposal to divest WBTC that there are risks associated with <a href="/price/tron-trx" target="_blank" class="blog_inner_link">Tron</a> founder Justin Sun's involvement in underlying asset custodian BiTGlobal. The original custodian of WBTC, BitGo, announced in August that it plans to transfer control of the asset to a joint operating entity of BiT Global, whose regulatory operations are based in Hong Kong.

**Standard Chartered Bank: Bitcoin and crypto markets will continue to rise after Federal Reserve cuts interest rates**

Standard Chartered Bank analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve's recent interest rate cuts, driven more by favorable macroeconomic conditions than the outcome of the US presidential election.

Kendrick pointed out in an email on Thursday: "After the FOMC meeting, digital assets ranked among the top performers for the first time in terms of performance. Although Polymarket showed Harris' approval rating of 52/47 today, the situation remains the same." He attributed this positive performance to macroeconomic drivers beginning to overwhelm election related uncertainties.

Kendrick insists that the impact of the US presidential election on Bitcoin prices is no longer as significant as it used to be. He said: "Although the US election is very important, the macro drivers are beginning to dominate." Kendrick said that he is monitoring the difference between short-term and long-term US treasury bond bond yields as an indicator of market conditions conducive to digital assets. “I have observed the 2s10s curve in the United States, and a steeper US yield curve is favorable for digital assets.”

## Market Trends: BTC ETFs resumed large inflows, meme sector led market gains
### Mainstream Coins
BTC briefly approached $64,000 early this morning and is now consolidating around $63,000. BTC ETFs have resumed large inflows, and overall market sentiment is improving;

After the overall rebound of the market, ETH finally started a slight rise, and there was no inflow/outflow of funds for ETH ETF yesterday;

The Altcoin market has rebounded significantly, with the meme sector being the best performing sector, and MEW, BILLY, and NEIROCTO being the best performing tokens；

In terms of data indicators, the AHR999 index was 0.71 today, indicating that the current <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">BTC price</a> is still suitable for long-term investment; The Fear & Greed Index is 54, and market sentiment is gradually rising.

### Market Hotspots
Meme sector: MEW, TURBO, BILLY and other sectors saw significant gains, with the Meme sector leading the market in overall growth. MEW has been launched on the Korean trading market, and the new fiat currency trading pairs have stimulated the price of MEW.

Modular blockchain: SAGA, DYM, ALT, TIA and other modular blockchain protocol tokens have collectively risen. SAGA is a modular gaming public chain built on Cosmos, and the GameFi sector in the market has recovered, driving the rise of gaming infrastructure projects. TIA will receive a large unlocking next month, and there is currently a possibility of pre unlocking to increase liquidity.

<a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> Ecosystem: SOL returned to $140, with a 7% intraday increase. Solana ecosystem projects have generally risen, with POPCAT, FIDA, and others experiencing significant increases. Solana officially announced the launch of the second generation <a href="/web3" target="_blank" class="blog_inner_link">Web3</a> mobile phone.

## Macroeconomy: US stocks continue to record high, excessive interest rate cuts may cause stock market foam
After the Federal Reserve announced a 50 basis point interest rate cut, the US stock market experienced a significant rise. Today, the Dow Jones Industrial Average rose 522.09 points, or 1.26%, to close at 42025.19 points; The S&P 500 index rose 95.38 points, or 1.70%, to close at 5713.64 points; The Nasdaq rose 440.68 points, or 2.51%, to close at 18013.98 points. Both the Dow Jones Industrial Average and the S&P 500 Index have reached historic highs.

There are different opinions in the market regarding the pace of future interest rate cuts by the Federal Reserve. Financial institutions such as Goldman Sachs and JPMorgan Chase have adjusted their forecasts, but it is widely believed that the Federal Reserve will continue to cut interest rates in the coming period to support economic growth. However, some analysts warned that excessive interest rate cuts may trigger risks such as foam in the stock market.

### Conclusion
The prices of BTC and ETH may continue to rise with the inflow of ETFs and positive market sentiment. The AHR999 Index and Fear & Greed Index indicate that the current market sentiment is optimistic and suitable for long-term investment. The strong performance of the meme and modular blockchain sectors may attract more capital inflows, driving further rebound in the overall Altcoin market.

Under the positive news of the official new product release, the Solana ecosystem project may continue to be sought after by the market. In terms of macroeconomics, the Federal Reserve's interest rate cut policy may boost market confidence in the short term, but caution should be exercised about the risk of a "hard landing" for the US economy.

Overall, with the gradual rise in market sentiment and strong performance of various tokens, the <a href="/price" target="_blank" class="blog_inner_link">crypto market</a> is expected to continue to rebound in the short term. However, investors should remain vigilant, focus on macroeconomic and market dynamics, and adjust their investment strategies in a timely manner.

<div class="blog-details-info">
<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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