Daily News | Crypto Market Rebounds Overall, Federal Reserve May Cut Interest Rate by 100% in September
Crypto Daily Digest: BTC spot ETF overall inflow, ETH spot ETF outflow significantly reduced
According to Farside Investor data, on August 1, the overall inflow of Bitcoin spot ETFs came mainly from Grayscale’s mini trust launched this week, which had an inflow of $191 million, while BlackRock had an inflow of $xx billion. Grayscale GBTC had outflows of $71 million and Fidelity had outflows of $48 million.
The ETH ETF is currently experiencing overall outflows, with the main outflow coming from Grayscale ETHE of $78 million. The outflow rate has significantly decreased compared to the first week of trading.
In July, Bitcoin Whale increased its holdings by 84,000 Bitcoins, setting a new record since October 2014
According to data from IntoTheBlock and TradingView, Bitcoin Whale increased its holdings of over 84,000 BTC in July. This is the largest monthly increase in holdings since October 2014.
Grayscale ETHE daily net outflow rate slows down
The daily net outflow rate of Grayscale ETHE has slowed down, with a net outflow of only $78 million yesterday, the lowest outflow since its listing. The total net outflow in the 8 trading days before listing reached $2.055 billion.
Jupiter’s proposal to reduce JUP token supply has now started voting
Jupiter announced that the proposal to reduce the supply of JUP tokens has now started voting, with the main goal of providing more certainty, consistency, and transparency for all JUP holders and communities.
For this proposal, Meow and the core team propose to reduce the total supply by 30%, from 10 billion to 7 billion, with the team voluntarily reducing its designated allocation by 30%.
Market Trends: The market rebounded significantly, but the subsequent trend is still unclear
BTC: Yesterday, the BTC price fell sharply to around $62,500 and quickly rebounded, now rising above $64,500. Despite significant price fluctuations, there are currently no clear signs of cash inflows from BTC ETFs. This indicates that the current rebound is likely to be a short-term phenomenon, and investors are advised to operate cautiously until the trend becomes clear.
ETH: Ethereum fell below the key support level of $3,100 yesterday, but then rebounded along with the market, currently rising above $3,200. It is worth noting that the outflow amount of the Grayscale ETF was less than $100 million for the first time, indicating a significant reduction in the outflow pressure of the ETF. This helps alleviate the selling pressure in the market, but investors still need to carefully observe the subsequent trend.
Altcoins: Altcoins followed the overall rebound of the market, but currently there is no obvious leading currency. There are only 115 tokens in the market that have increased by more than 10%, and market funds are still relatively dispersed. This indicates that the current market lacks a clear flow of funds and may continue to exhibit a volatile pattern in the short term.
AHR999 Index: Today’s AHR999 Index is 0.85, indicating a significant decline in the index. The current price is a good buying opportunity for long-term investors.
Fear & Greed Index: The current index is 57, and market sentiment has recovered after a rebound, but it is still in a rational range.
Market Hotspots:
Meme sector: Cat tokens in the Meme sector (such as MIGGLES, MANEKI, POPCAT, etc.) rebounded more than 15% from yesterday’s low. Despite the relatively strong performance of cat-themed Meme coins in the past month, no coin has yet surpassed the $1 billion market value mark. POPCAT and MEW were once close to $1 billion, but both have fallen significantly.
Solana Eco: SOL failed to hit the $200 mark again in July and has now fallen to around $165. The recent decline of SOL has also affected Solana’s eco projects. In the political market tokens at the end of July, FIGHT and FEARNOT, among others, performed better on the Ethereum chain with the same name tokens.
To Sum Up
The current market is showing an overall volatile pattern, with both Bitcoin and Ethereum showing signs of short-term rebound, but lacking significant capital inflow support. The funds in the Altcoin market are scattered and lack leading currencies. In terms of macro environment, the Fed’s monetary policy is approaching a cyclical shift, and market expectations for interest rate cuts are high, which may bring new capital inflows to the crypto market. Investors should remain cautious in the current environment and wait for market trends to become clearer before making decisions.
Macro: US stock market drops by over 1%, expectations of Fed September interest rate cut soaring
The three major indexes of the US stock market all experienced a decline of over 1%, with the S&P 500 index falling 1.37% to 5446.68 points; The Dow Jones Industrial Average fell 1.21% to 40347.97 points; The Nasdaq index fell 2.30% to 17194.14 points.
The performance of popular US stocks varies, with Apple falling 1.68%, Nvidia falling 6.67%, Meta rising 4.83%, TSMC falling 4.59%, Tesla falling 6.55%, and Intel falling 5.50%.
On the early morning of August 1 Beijing time, the Federal Reserve announced that it would maintain the target range of the federal funds rate between 5.25% and 5.5% unchanged. This is the eighth consecutive time that the Federal Reserve has kept interest rates unchanged. The Federal Reserve has stated that if progress continues to be made in combating inflation, it may announce a rate cut at its September meeting this year. Institutional insiders generally believe that it is almost certain that the Federal Reserve will initiate a rate cut cycle in September this year, with a high probability of cutting interest rates twice within the year.
Overall, the Fed’s monetary policy is approaching the window of cyclical change, and market expectations for a rate cut in September are high. The conditions for the Fed to cut interest rates are ripe, and a new round of monetary easing is about to begin.
