Crypto

• It is becoming increasingly clear that the first U.S. interest rate cut is just around the corner.
• The next Federal Open Market Committee (FOMC) meeting, scheduled for September 18, will determine the Federal Reserve’s (FED) next move on U.S. Dollar interest rates.
• The FED has strongly indicated its intent to reduce rates by at least 25 basis points, with a slim possibility of a 50 basis point cut, although this is highly unlikely following the release of a slightly higher-than-expected U.S. Consumer Price Index (CPI) yesterday.

• TradFi shows resilience, while crypto struggles—BTC is down, and ETH underperforms US Treasuries.
• Powell’s Pivot promises hope, but crypto markets await the real demand catalyst for recovery.
• Despite market weakness, short-term opportunities exist—learn to navigate price action and volume dynamics.

• Since the release of our Crypto Moves #42 on Friday, the market experienced further declines but has since regained some of its lost ground.
• Our outlook remains unchanged: at best, the market will move sideways throughout September, and at worst, we may see further declines.
• However, starting in October, the market will most likely show signs of life similar to those we saw in the early months of this year.

• Austin from Solana tweeted about Solana’s new network extensions
• Kyle Samani discussed how Solana rollups will differ from Ethereum’s
• Prasad observed developments in Solana rollups, including SVM separation and new apps like Magic Block and Spicenet.

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• In Monday’s Crypto Crisp, we took a bearish stance, driven by a worsening economic outlook, with growth falling short of expectations and liquidity conditions looking grim for September.
• Since then, the crypto market has continued its decline.
• While we believe September will likely be challenging for digital assets, it is too extreme to claim the bull market is over.

• Bitcoin and other cryptocurrencies are experiencing significant price fluctuations
• Stablecoins like Tether and USDC have remained stable, providing a store of value
• The narrative around stablecoins as the killer app of crypto raises questions about reliance on existing financial infrastructure and potential systemic risks

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• As we enter a new month, it is a good time to reassess the market outlook.
• Throughout August, we held the belief that the crypto market would gradually recover from its early-month lows.
• While this expectation was partly fulfilled, we now recognize several indicators suggesting a downward trend or, at best, sideways movement throughout September.

• In last week’s Crypto Moves #40, we highlighted that we are on the verge of a significant surge in interest toward decentralized finance, or DeFi. We believe that only a select few DeFi-focused cryptocurrencies truly have the potential to benefit from this anticipated increase in DeFi interest, as this interest is likely to translate into greater monetary rewards for their token holders.
• As we have consistently emphasized, apart from Bitcoin, we only invest in productive cryptocurrencies – those that offer monetary rewards to their token holders, much like dividends from equities.
• In some cases, we may consider investing if we are confident that the cryptocurrency in question will soon become productive.

• Powell’s Pivot: A New Era for Crypto Markets as Interest Rates Shift. Discover how the Fed’s changing stance may ignite new demand in the crypto market.
• BTC’s Rally: Can It Sustain Its Momentum Amidst Shifting Economic Policies? Explore the critical market movements and the implications of BTC’s recent surge.
• Stablecoin Growth: The Catalyst for the Next Crypto Boom? Understand the vital role of stablecoins and credit in the future of crypto market growth.

• Over the weekend, both Bitcoin and Ethereum reached their highest levels since the crash three weeks ago.
• As we have emphasized repeatedly in recent weeks, we continue to anticipate a gradual yet steady recovery of the crypto market, with prices to return to their pre-crash levels over the next month.
• Now, let us dive into this week’s top news.

• The summer of 2020 marked a pivotal moment for decentralized finance (DeFi), as it gained significant momentum, reflected by the surge in Total Value Locked (TVL) across DeFi protocols.
• Chart 1: Total Value Locked (TVL) in 2019 and 2020While DeFi continued to grow through 2021, it was the rapid expansion during the summer of 2020 that left a lasting impression on the community, earning the period the moniker ‘DeFi Summer.’Chart 2: Total Value Locked (TVL), All TimeAlthough the actual season may be shifting towards winter, ‘DeFi Summer’ is making a comeback, but the Total Value Locked is still quite far from its 2021 peak.
• However, it is likely only a matter of time before we surpass that all-time high – potentially as soon as the first half of 2025.

• The crypto market has been pretty boring lately, with low volatility and no significant movements in either direction for weeks.
• The past week’s low volatility, combined with the ongoing drop in exchange balances for Bitcoin and Ether, strengthens our view that we are in an accumulation phase.
• This suggests the market is gearing up for a move upward rather than downward.