Daily news| Crypto Market Declines Over the Weekend, U.S. Spot Bitcoin ETFs Acquired 6,892 BTC Last Week, Fed to Announce Rate Decision This Week

2024-09-16, 03:30

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##Crypto Daily Digest:  Crypto Market Declines Over the Weekend, U.S. Spot Bitcoin ETFs Acquired 6,892 BTC Last Week, Fed to Announce Rate Decision This Week

Last week, U.S. spot <a href="/fr/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs purchased a total of 6,892 BTC, while miners produced only 2,250 BTC. On Friday, the daily net inflow for U.S. spot Bitcoin ETFs reached $263.1 million, marking the highest single-day inflow since July 22, when it was $485.9 million.
 
This week, the Federal Reserve is set to announce its interest rate decision and economic outlook summary. As the Asian markets opened today, there was a 67% chance of a 50 basis point rate cut.
 
Gradient Network, an open edge computing layer within the  <a href="/fr/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> ecosystem, has completed a new round of financing with participation from Multicoin Capital and others.
 
The tokenized healthcare platform has secured $1.2 million in pre-seed funding, with investment from Animoca Brands and others.
 
Recently, Trias unveiled its advanced AI product, NetX Agent. This agent serves as a gateway to the future network economy built on the Trias Layer-1 network and the NetX mainnet, offering features like 24/7 operation, unlimited growth, and collaborative capabilities.
 
YGG announced that their game tester program will enable the community to participate in transforming early <a href="/fr/web3" target="_blank" class="blog_inner_link">Web3</a> game projects into high-quality games. The program aims to recruit 1,000-2,000 active testers by the end of 2024.
 
The popular cat-themed metaverse game Catizen has announced its tokenomics, revealing that 34% of its tokens will be allocated for airdrops.
 
There are reports suggesting another assassination attempt on Donald Trump. Following the shooting incident, Trump's chances of winning the election increased by 1%, though he still trails behind Harris. President Biden has instructed his team to ensure the <a href="/fr/price/secret-scrt" target="_blank" class="blog_inner_link">Secret</a> Service has sufficient resources to protect Trump. Meanwhile, Florida has launched its own investigation into the incident.
 
On the X platform, the on-chain perpetual DEX LogX announced that its Token Generation Event (TGE) will take place on September 24.
 
The <a href="/fr/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>-based liquidity re-staking protocol Eigenpie has unveiled its EGP token economic model, with a total supply of 10 million EGP tokens.
 
Usual has released its roadmap and announced that its TGE will occur in mid-November, with 90% of the tokens being distributed to the community.

The decentralized AI security detection and AI training platform Triathon has introduced a new $GROW token staking service. Users can earn up to 20% annual yield by staking $GROW tokens, and also receive veGROW, which can be used for community governance and voting.
 
Data: The assets under management for the Grayscale SUI Trust Fund have surpassed $1 million.
 
The Central Bank of Russia and the Ministry of Finance are drafting regulations to establish rules for cross-border cryptocurrency payments. The government aims to finalize these regulations by the end of November.
 
According to the schedule, the Federal Reserve will announce its interest rate decision and economic outlook summary this Thursday at 2 PM.
 
Circle has announced plans to move its global headquarters to New York, with the new office expected to open in early 2025.
 
A survey by the Financial Industry Regulatory Authority (FINRA) reveals that 55% of U.S. Generation Z prefers investing in cryptocurrencies. Gen Z favors on-chain financial activities over online ones.
 
Sam Bankman-Fried (SBF), the founder of the crypto trading platform FTX, has formally appealed his fraud charges, requesting a retrial and accusing the presiding judge of bias against him.
 
According to the acting president of Montenegro's Supreme Court, a decision on whether the extradition ruling for Do Kwon violated the law is expected by the end of this month.
 
Data from Breadcrumbs.app indicates that the cryptocurrency industry has contributed $190 million to political donations for the 2024 U.S. elections so far.
 
The U.S. Securities and Exchange Commission (SEC) has expanded its lawsuit, adding tokens such as <a href="/fr/price/axie-infinity-axs" target="_blank" class="blog_inner_link">Axie Infinity</a> (AXS), <a href="/fr/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> (FIL), Cosmos (ATOM), <a href="/fr/price/the-sandbox-sand" target="_blank" class="blog_inner_link">The Sandbox</a> (SAND), and <a href="/fr/price/decentraland-mana" target="_blank" class="blog_inner_link">Decentraland</a> (MANA) as unregistered securities.

##Market Analysis: BTC Faces Resistance at $60,000, Awaiting Further Momentum
**General trend: **
Bitcoin (BTC) experienced a moderate pullback over the weekend, facing resistance at the 60-day moving average and the psychological $60,000 level, halting its recent rebound. As of the time of writing, BTC has seen three consecutive days of decline, with the market caught in a wide-ranging tug-of-war between bulls and bears. This week, attention is focused on the support level at $55,000 and the potential impact of the upcoming Federal Reserve interest rate decision. 
 
From a technical perspective, Bitcoin has been in a broad consolidation phase since mid-March, which aligns with the historical pattern of post-halving consolidation. Despite the recent three-day decline, the weekly chart shows a bullish engulfing pattern. Given the CME futures' gaps both above and below the current price, the fluctuation range is expected to remain tight. Historically, Bitcoin does not tend to exhibit unidirectional movements, suggesting that the market may choose a direction in October after this period of adjustment.
 
In terms of capital flows, U.S. spot ETFs showed a pattern of outflows followed by inflows in September. Notably, U.S. spot Bitcoin ETFs purchased 6,892 BTC last week, while miners produced only 2,250 BTC. This could indicate a recovery in market sentiment, as the market begins to shake off fears of a U.S. economic recession and whale sell-offs.
 
This week, the market will be navigating between expectations of liquidity easing due to potential rate cuts and the urgency of economic risks. Recent economic data indicates a significant cooling of inflation. Whether the Fed opts for a 25 or 50 basis point cut will have different psychological impacts on the market, making it a crucial driver of short-term volatility in crypto assets. However, from a long-term perspective, improvements in macro liquidity are likely to stimulate a return to bullish sentiment in the Bitcoin market.
 
In summary, Bitcoin is still subject to various complex factors and may continue to adjust in the short term. However, the long-term outlook remains positive.

**Market hot spots:**
AI Sector: The AI sector led the market with a slight gain last week, posting a 7-day increase of 8.3%. Leading tokens in this sector, such as ICP, FET, and TAO, saw weekly gains of 9.0%, 16.5%, and 16.7%, respectively. After Nvidia (NVDA.US) released its Q2 earnings report, the initial positive sentiment turned negative, causing a significant price drop. However, the sector began a recovery rally last week alongside the broader market.

Cat-Themed MEME Sector: The cat-themed MEME sector currently boasts a market cap of $2.3 billion and a weekly gain of 16.3%. MEME tokens have evolved into a relatively independent, well-established bull market driver, with cat-themed MEMEs performing particularly well. Leading tokens like POPCAT, MEW, and MOG are at the forefront, and the CAT token, named after the popular overseas IP short film Simon's Cat, also showed impressive performance, ranking fourth in the sector. Weekly gains for these leading tokens were 24.7%, -1.9%, 6.3%, and 19.2%, respectively.

RWA Sector: The RWA (Real World Assets) sector recently followed the broader market with a strong rebound, posting a 7-day gain of 6.3%. Notable gainers in this sector include OM, ONDO, PENDLE, and CFG, with 24-hour gains of 20.1%, 0.9%, 15.9%, and 2.1%, respectively. Despite U.S. Treasury yields remaining at historical highs, the impending rate cut cycle means the RWA sector must quickly find safer, high-yield alternatives to manage potential liquidity shifts.

Overall, while macro liquidity expectations in the <a href="/fr/price" target="_blank" class="blog_inner_<a href="/fr/price/link-ln" target="_blank" class="blog_inner_link">link</a>"><a href="/fr/price" target="_blank" class="blog_inner_link">crypto market</a></a> are gradually improving, short-term uncertainty still prevails. Sectors outperforming Bitcoin are still rare, and market speculation remains cautious, with funds rotating through various sectors. The market may be looking for a breakout product to ignite a rally. In addition to the current bull market drivers like AI, RWA, and MEME, the cat-themed MEME mini-games on the TON chain are worth watching.

##Macro: Key Attention on Thursday's Federal Reserve Rate Decision, Short-Term Market Risks Increase

The Federal Reserve's monetary policy is at a critical turning point, with widespread expectations that it will announce a rate cut this Thursday to address slowing inflation, a cooling labor market, and sluggish economic growth. There is a split in market opinion regarding the extent of the rate cut, with traders predicting nearly equal probabilities for a 25 basis point or a 50 basis point reduction.

If the Federal Reserve chooses to cut rates by 50 basis points, it is often interpreted as an urgent need to control inflation, which could trigger heightened risk aversion in financial markets and negatively impact risk assets, including Bitcoin, in the short term. Such a significant rate cut usually signals a more pessimistic economic outlook, potentially prompting investors to reduce their exposure to high-risk assets. However, some analysts argue that the Federal Reserve's primary goal is to mitigate economic downturn risks rather than directly influence market sentiment.

On the other hand, a smaller rate cut of 25 basis points is considered a more cautious approach. It can signal easing to the market while maintaining policy flexibility to adjust based on future economic data. Notably, JPMorgan CEO Jamie Dimon recently expressed concerns about the risk of stagflation. While there is some <a href="/fr/price/<a href="/price/optimism-op" target="_blank" class="blog_inner_link">optimism</a>-op" target="_blank" class="blog_inner_link">optimism</a> about easing inflation, he warned that the economy still faces significant challenges, particularly the potential for rising inflation due to increased government spending and widening fiscal deficits.

Historically, since March 2020, the Federal Reserve slashed interest rates to near-zero levels to combat the economic impact of the COVID-19 pandemic. Then, starting in 2022, the Fed began raising rates consecutively to curb the rapidly rising inflation. The benchmark lending rate currently stands at a range of 5.25%-5.50%, the highest in 20 years.

Overall, most economists and market participants expect the Federal Reserve to adopt a cautious stance, likely opting for a 25 basis point rate cut to retain policy flexibility. The latest developments in Federal Reserve monetary policy will have profound implications for global financial markets, including cryptocurrencies. Investors are advised to closely monitor the Federal Reserve's rate decision on September 19 and other related developments, and to act when market volatility becomes clearer.

<div class="blog-details-info">
<div>Author:** Carl Y.**
<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.
</div>

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