BTC is + 9.22%, trading at $59.4K
ETH is +4.74.%, trading at $2.35K
BTC dominance: 56.4%
Crypto market cap: $2.08T
Digital asset markets have had a choppy week, but today BTC gained 3.8% to reclaim $59K. This movement follows MicroStrategy’s purchase of an additional 18,300 bitcoin for $1.1bn, taking its holdings to 244,800 BTC.
Macro Overview
Global markets have been grappling with the size of the Fed’s potential rate cut for months. With the latest CPI at 2.5% and PPI at 1.7%, expectations for a 50-bps cut are fading. A 25bps cut is now widely anticipated at the upcoming FOMC meeting, though Goldman Sachs CEO David Solomon still argues for a more aggressive reduction. In Europe, the ECB delivered the expected 25bps deposit rate and 60bps refinancing rate cuts – a move viewed as constructive for crypto markets.
US events
Election Debate
Following the closely watched Trump-Harris debate, Harris has gained ground in the polls. Bitcoin prices and shares of Coinbase dropped sharply in the immediate aftermath, signaling traders see a lower chance of pro-crypto candidate Trump winning the U.S. 2024 presidential election. With no clear frontrunner and ambiguous policies from both sides, markets are bracing for a risk-off shift as Election Day approaches.
Trump’s DeFi Project
Meanwhile, Trump’s World Liberty Financial DeFi project is set to launch on Sept 16 with a live event on Twitter Spaces. Analysts remain skeptical due to insider-heavy token allocations (70%) and similarities to the previously compromised Dough Finance. The timing of the launch, just before the election, is also raising questions.
DeFi hearing
Tuesday marked a landmark day for the crypto market as Congress held its first DeFi hearing on Tuesday. The 2.5 hour session highlighted a split between lawmakers; democrats focused on crime and sanctions evasion, while Republicans and industry leaders stressed DeFi’s potential for inclusivit
Other notable developments
UK to clarify crypto’s legal status
The UK has introduced a bill to officially and legally classify digital assets as personal property. The new law will hopefully bring more certainty to the UK crypto market, striving to protect owners and companies against fraud and scams and help judges handle complex cases involving digital holdings, such as in divorce settlements.
Fundraising Landscape
New PitchBook data shows that crypto VC fundraising is showing signs of recovery in 2024, with raised capital on track to exceed last year’s $2.6B. However, AI continues to dominate the spotlight, with $64.1bn in VC funding this year, as per WSJ.
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