Daily News | BTC is Suppressed by the $65,000 Mark, Crypto Market May Enter a Short-term Adjustment after a General Rise

Crypto Daily Digest: BTC ETF continues to have positive inflows, and the Fed may cut interest rates by another 50 basis points in November

According to Farside Investor data, the US Bitcoin spot ETFs had a net inflow of $100 million yesterday. BlackRock’s IBIT inflow was $184 million, and Fidelity’s FBTC net outflow was $33 million.

Yesterday, the US ethereum-eth" target="_blank" class="blog_inner_link">Ethereum spot ETFs had a net inflow of $43 million, including $9 million from BlackRock ETHA and $26 million from Grayscale Mini ETH.

Ethereum’s net supply increased by 6,556 tokens in the past seven days

According to Ultrasound.money data, the net supply of Ethereum has increased by 6,556 coins in the past seven days, of which the supply has increased by approximately 18,349 ETH, and 11,793 ETH have been destroyed through the destruction mechanism. The total supply of Ethereum has reached 120,359,815 ETH, with the supply growth rate currently dropping to 0.284% per year.

Analysis: If labor data disappoints again, Powell may have a chance to persuade colleagues to support a 50 basis point rate cut

When the Federal Reserve announced its decision on September 18th, its forecast showed that the vast majority of officials supported adjusting the benchmark interest rate by a full percentage point or more this year. This means there will be at least one significant rate cut. But quite a few people also believe that only 75 basis points are needed, indicating support for three smaller rate cuts.

However, all but one of the 12 Federal Open Market Committee (FOMC) voting members supported Powell’s 50 basis point rate cut. This is a crucial victory for Powell as he attempts to prolong the economic expansion that many have predicted has long ended. The only dissenting Fed member, Bauman, called for a more restrained pace of interest rate cuts to avoid undermining progress in inflation.

Economists say that if the economy starts to decline, another 50 basis point interest rate cut is possible. As long as inflation cools, Powell will prioritize maintaining the economy close to full employment. If the labor market data disappoints again, Powell may be able to tilt his colleagues towards a 50 basis point rate cut in the coming months. Some officials have stated in recent days’ speeches that they are likely to support continuing the 25 basis point rate cut but have also opened the door for another significant rate cut.

Berachain launched RFB incentive program to provide liquidity and other support for early-stage teams

Berachain announced the launch of the Request For Broposal (RFB) incentive program. RFB mainly provides liquidity and other support for Berachain’s eco projects and testnet developers, helping the project to start cold.

It is reported that projects deployed on the Berachain testingnet can apply to participate in the RFB program before October 9th and can choose to participate in the Boyco project at the same time. The Boyco project supports project parties in accessing the Royco Protocol, allowing them to directly receive liquidity support from Berachain and focus on project development and community operations.

Market Trends: HMSTR will go live, NEIROCTO rose and then fell back

Mainstream Coins

The leader of the “click-to-earn” game Hamster Kombat on Ton Chain will conduct token airdrops and launch them on Gate.io today. Hamster Kombat has over 100 million users, and users with this base size cannot receive large token airdrops per capita. It is likely just a consolation prize. Currently, the estimated market cap of HMSTR is about $1 billion, and the current market cap of the previously released Ton Chain game DOGS has fallen from a high of $900 million to $450 million;

solana-sol" target="_blank" class="blog_inner_link">Solana‘s on-chain meme token, Hippo Moodeng, has risen nearly 1,000 times in two weeks, with a market cap exceeding $100 million. Animal meme coins have shown a trend of spreading to other star animals after cats, dogs, and frogs. However, it remains to be seen how much exposure this trend can bring to tokens and whether the momentum of token appreciation will continue;

Market Hotspots

BTC fell below $63,000 this morning, and there was a large outflow of funds from BTC ETFs. The market is still suppressed by $65,000;

After briefly breaking through $2,700, ETH has fallen back and is now back below $2,600. Despite the inflow of over $6,000 into the ETH ETFs yesterday, it has not been able to change the decline of ETH since this round of market trend;

Altcoins generally experienced a pullback, with NEIROCTO plummeting by 30% after rising, while stagflation tokens such as WLD and celo-celo" target="_blank" class="blog_inner_link">CELO rose.

Macroeconomics: The three major US stock indices fluctuated, while US bond yields slightly increased

The three major US stock market indexes have fluctuated, with the S&P 500 index falling 0.19% to 5,722.26 points, the Dow Jones Industrial Average falling 0.70% to 41,914.75 points, and the Nasdaq index rising 0.04% to 18,082.21 points. The benchmark 10-year Treasury yield is 3.79%, while the 2-year Treasury yield, most sensitive to the Federal Reserve policy rate, is 3.53%.

In recent statements, Federal Reserve Governor Kugler strongly supported the Fed’s decision to cut interest rates last week and hinted that if inflation progresses as expected, he will support further interest rate cuts. The market has responded positively to this, with the Chicago Mercantile Exchange’s FedWatch tool showing that the market’s expectation for the Federal Reserve to cut interest rates by another 50 basis points at its November meeting has risen to over 60%. Goldman Sachs’ Chief US Equity Strategist David Kostin predicts that once the dust settles on the US presidential election results, US stocks will continue to rise, and the S&P 500 index is expected to reach around 6000 points in a year.

Conclusion

The current digital currency market is greatly influenced by the macroeconomic environment, especially the expectation of interest rate cuts by the Federal Reserve. The fund flow of Bitcoin and Ethereum ETFs shows investor divergence and market uncertainty. The Altcoin market is highly volatile, and investors must operate cautiously. In terms of macroeconomics, the policy direction of the Federal Reserve and the performance of the US stock market will continue to affect the sentiment and trend of the entire market.

Investors need to closely monitor the Federal Reserve’s policy movements and labor market data while maintaining sensitivity to market hotspots to seize investment opportunities amidst fluctuations.