Daily News | BTC Rebounded Above $58K, SUI Showed Strong Performance

2024-09-12, 04:23

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## Crypto Daily Digest: BTC ETF experienced a slight outflow, while BTC has rebounded after the release of CPI
According to Farside Investor data, there was a net outflow of $44 million from the US <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETF yesterday. Among them, Ark ARKB had a net inflow of $54 million, and Fidelity FBTC had a small inflow of $12.6 million. 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 ETFs saw a small outflow of $500,000 yesterday, with overall ETH ETF trading volume being relatively small. The cooling of ETFs is also reflected in the price of ETH, which lags far behind BTC in its rebound after the release of CPI data.

**Analysis: The monthly rate of core inflation in the United States has risen, ruling out the possibility of a significant interest rate cut by the Federal Reserve**

According to Informa Global Markets, the overall CPI in the United States slowed to 2.5% year-on-year in August, consistent with expectations and the lowest level since February 2021. The annual core inflation rate remains at 3.2%, which is also in line with expectations. The market noticed that the higher than expected core inflation rate was 0.3% per month, which prompted the US dollar to rise from 141.80 to 142.35 against the Japanese yen. This data supports a 25 basis point rate cut by the Federal Reserve next week and should rule out the possibility of a larger 50 basis point rate cut. After the release of CPI data, the market expects the probability of the Federal Reserve cutting interest rates by 25 basis points in September to rise to 85%.

**If Bitcoin breaks through $60,000, the mainstream CEX's accumulated short clearing strength will reach 732 million**

According to Coinglass data, if Bitcoin rebounds and exceeds $60,000, the mainstream CEX's accumulated short clearing intensity will reach 732 million. On the contrary, if Bitcoin falls below $56,000, the cumulative liquidation strength of mainstream CEX orders will reach 1.203 billion.

The liquidation chart shows to what extent the target price will be affected when it reaches a certain position. A higher 'liquidation column' indicates that the price will have a stronger reaction due to the wave of liquidity once it arrives.

**Blackstone Group: US inflation returned to the Fed's target**

Michael Chae, Chief Financial Officer of Blackstone Group, stated that the company is cautiously optimistic about a soft landing in the United States, indicating that the alternative asset management company is betting that the Federal Reserve's efforts to curb inflation will not trigger a US economic recession.

Blackstone's own inflation measure shows that inflation in the United States has reached 1.7%, which excludes housing costs and includes other related indicators. Chae stated that this will enable the United States to 'achieve the Federal Reserve's inflation target'.

## Market Trends: BTC returned to $58,000, Altcoins did not follow the rebound
### Mainstream Coins
BTC fell sharply after the release of CPI data, and then strongly rebounded above $58,000. Currently, the market sentiment is low, which may suggest that BTC prices are also in the bottom range;

ETH followed the rebound, but its overall performance is still weak, with a rebound of no more than 2%;

Altcoins did not follow the rebound of the market, and SUI and POPCAT performed strongly;

In terms of data indicators, today's AHR999 index is 0.59, not far from the bottom buying range; The Fear & Greed Index is 31, and the market's panic has intensified after the overall rebound.

### Market Hotspots
Public chain Sui: SUI continued its strong price performance, breaking through the $1 mark within the day and increasing by over 10% in 24 hours, becoming the best performing public chain project in the market. The news of Sui's launch of game console pre-sales and the establishment of a grayscale SUI trust warehouse has stimulated the price performance of SUI.

Meme sector: POPCAT, MANEKI, CAT and other Meme coins have risen. POPCAT rose from a low of $0.545 to above $0.62, with a intraday increase of over 10%, becoming the best performing mainstream meme coin. POPCAT currently has a market value of $600 million and is expected to become the first cat meme coin with a market value exceeding $1 billion.

## Macroeconomics: The three major stock indexes in the US stock market collectively closed higher, and the probability of a 25 basis point interest rate cut in September greatly increased
The three major US stock indices collectively closed higher, with the S&P 500 index rising 1.07% to 5,554.13 points; The Dow Jones Industrial Average rose 0.31% to 40,861.71 points; The Nasdaq index rose 2.17% to 17,395.53 points.

The benchmark 10-year Treasury yield is 3.65%, and the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 3.62%.

On Wednesday evening, the August inflation data released by the United States was mixed, and traders lowered their bets on a 50 basis point sharp interest rate cut by the Federal Reserve in September, causing short-term gains in the US dollar index and US Treasury yields. However, later on, driven by technology stocks, the three major stock indexes smoothed out the decline and collectively rose. According to the Chicago Mercantile Exchange's FedWatch tool, the probability of the Federal Reserve cutting interest rates by 25 basis points in September has risen to 85%, while the probability of a 50 basis point rate cut has dropped to 15%.

### Conclusion
Although the current market has experienced short-term fluctuations, the overall trend shows some signs of recovery. The strong rebound of Bitcoin and the performance of specific Altcoins have injected confidence into the market. The improvement of the macroeconomic environment has also provided support for the market. Although the market sentiment is relatively panicked, this may be a good opportunity for investors to layout their positions on dips.

Investors should continue to focus on macroeconomic data and market hotspots, especially strong performing projects such as SUI and POPCAT. At the same time, remain vigilant, diversify investments reasonably, and avoid short-term fluctuations affecting long-term investment strategies.

<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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