Daily Summary:
Bitcoin is the best performing asset so far this year, DOGE whales increase holdings
According to Farside Investor data, US Bitcoin spot ETFs had a net inflow of US$233.8 million yesterday, of which BlackRock IBIT had a net inflow of US$96.5 million and Fidelity FBTC had a net inflow of US$103.7 million.
There was no inflow or outflow of funds for the US Ethereum spot ETF yesterday.
Report: Bitcoin remains the best performing asset so far this year
New York Digital Investment Group (NYDIG) said that despite a "seasonally weak" third quarter, Bitcoin is still the best performing asset so far this year. Sales grew by just 2.5% in the third quarter, rebounding after a drop in the second quarter but hampered by massive sales during the same period, NYDIG head of research Greg Cipolaro said in an Oct. 4 report.
“Bitcoin remains the best performing asset class in 2024, but its lead has narrowed,” Cipolaro said. Bitcoin is up 49.2% year to date. Trading has remained largely range-bound for much of the past six months amid major headwinds such as the Mt. Gox and Genesis creditor distributions, which totaled nearly $13.5 billion, and massive BTC sales by the U.S. and German governments.
Cipolaro added that other assets such as precious metals and certain stock sectors rose relative to BTC, and most asset classes had a "stellar year." Bitcoin also bucked the trend in September, rising 10%, which is typically a bearish month for the asset.
DOGE whales increased their holdings of DOGE tokens worth more than $230 million last week, the highest level since January this year
According to IntoTheBlock, Dogecoin (DOGE) whales purchased a total of 2.07 billion DOGE tokens (about $231 million) last week, the highest level since January this year. This may indicate that investors' interest in DOGE is rising, and this large-scale accumulation behavior is usually seen as a signal for price increases.
Fed's Musallem: Further rate cuts may be appropriate, but it is more desirable that further rate cuts be gradual
According to BlockBeats, on October 8, St. Louis Fed President Musallem said he supported the Fed's decision to cut interest rates by 50 basis points last month, but stressed that he would prefer further rate cuts to be gradual. Given the current economic situation, it is believed that the cost of excessive easing too early is greater than the cost of too little easing too late, and it may be appropriate to further gradually reduce the policy rate over time. It is predicted that the Fed's preferred inflation measure, the personal consumption expenditure price index (PCE), will converge to 2% in the "next few quarters."
Market Analysis: POPCAT breaks through the $1 billion mark, has the copycat season arrived?
Market Hotspots
- NEIROCTO, MEW, POPCAT and other tokens in the meme sector rose sharply. NEIROCTO is the leading token in this round of market, leading the rise of the entire market. POPCAT and MEW are cat-like meme tokens on the Solana chain. POPCAT has set new historical highs and became the first cat-like meme coin with a market value of over $1 billion;
- American political Polifi tokens collectively surged, including MAGA, STRUMP, TRUMP, etc. As the US presidential election approaches, related political concept meme tokens may usher in hot speculation;
- Public chain SUI, SAGA and other projects rose, while established public chains ETH and SOL performed poorly. SUI rose after a large amount of unlocking, with a market value of nearly 20 billion US dollars. SUI is the leading project in the public chain sector in this round of market;
- Fans coins OG, SANTOS, LAZIO, PORTO, etc. surged. Fans coins usually pull up collectively when the market falls. According to past data, the sustainability of fan coins' pull up is poor;
Market Trends
-BTC fluctuates widely between $60,000 and $64,000, BTC dominance rate decreases, and the alt season is coming;
-ETH fluctuated in a narrow range and is currently maintained around $2,450. ETH ETF trading volume and fund inflows are sluggish;
- Altcoins generally rose, the market lacked new hot spots, and the meme sector remained the most hyped sector in the market.
Macroeconomics: The three major U.S. stock indexes closed down collectively, and U.S. Treasury yields rose
The three major U.S. stock indexes closed down collectively, with the S&P 500 down 0.96% to 5,695.94 points, the Dow Jones down 0.94% to 41,954.24 points, and the Nasdaq down 1.18% to 17,923.90 points. The benchmark 10-year U.S. Treasury yield was 4.03%, and the 2-year Treasury yield, which is most sensitive to the Fed's policy rate, was 3.99%.
The U.S. 2-year/10-year Treasury yield curve turned negative for the first time since the Federal Reserve cut interest rates by 50 basis points on September 18. Traders expect the Fed to further cut interest rates by less than 50 basis points this year.
Summarize
Bitcoin may continue to face challenges from market volatility and macroeconomic policies in the coming months. As investor interest in DOGE rises, it may drive its price further up. The market's interpretation of the Fed's policies will be key, especially the pace and magnitude of interest rate cuts, which will directly affect the performance of risky assets.
In addition, as the US presidential election approaches, political meme tokens may become popular and attract more investors’ attention. Overall, the recovery of the altcoin market and the popularity of meme tokens may provide new opportunities for investors, but the sustainability and stability of the market still need to be observed.
