Daily Summary:

  • BTC ETF has a large outflow

  • Maker launches SKY governance token

According to Farside Investor data, the U.S. spot Bitcoin ETF had a net outflow of $127.05 million yesterday, ending the net inflow situation for the past eight consecutive trading days. Yesterday, ARKB had a net outflow of $102 million, GBTC had a net outflow of $18.3 million, and BITB had a net outflow of $6.8 million.

Yesterday, the US spot Ethereum ETF had a net outflow of $3.44 million, of which BlackRock ETHA had no inflow/outflow, Grayscale ETHE had a net outflow of $9.18 million, and Fidelity FETH had a net inflow of $3.88 million. Bitwise ETHW had a net inflow of $1.86 million.

Analyst: Bitcoin could reach $150,000 by the end of 2024

Jamie Coutts, chief crypto analyst at Real Vision, said that "unless something fundamental changes," Bitcoin's price trend is still expected to enter a "crazy season," also known as the "banana zone." The term was coined by Real Vision founder Raoul Pal and refers to the debt refinancing cycle driven by macroeconomic forces, which affects all asset prices, but cryptocurrencies perform particularly well.

Coutts noted that in each of the previous two bull cycles, Bitcoin hit new all-time highs within 365 days of the local dollar index peak. He suggested that if Bitcoin follows the previous bull run pattern, its price could rise more than 100% from its current level to $150,000 by the end of 2024.

CoinGecko Report: PolitiFi Sector Tokens Outperform Meme Coins This Year

Cryptocurrency data aggregation platform CoinGecko released a report stating that between January 1, 2024 and August 25, the PolitiFi (US election figure related meme) token category rose 782.4%, outperforming the broad Meme coin category, which rose 90.2% during the same period.

While the PolitiFi sector tokens have outperformed Meme Coins, they are still far behind. As of August 25, the PolitiFi sector has a 1.5% market share in the Meme Coin category with a market cap of $680.8 million, while Meme Coins has a market cap of $45.6 billion.

Maker rebrands to Sky Protocol and will launch native governance token SKY

According to BlockBeats, on August 27, Cointelegraph reported that the Maker Protocol has officially changed its name to Sky and announced the names of its upgraded stablecoin and native governance token, aiming to make decentralized finance (DeFi) more accessible to the public. As part of the name change, Maker renamed Dai (DAI), the world's largest decentralized stablecoin, to USDS.

The protocol also launched Sky (SKY), a native governance token for the wider Sky ecosystem, as an upgrade to the Maker (MKR) token. MakerDAO co-founder Rune Christensen called the rebrand a step toward the "next evolution of DeFi." MKR holders can upgrade their MKR to SKY, and SKY can also be converted back to MKR. The upgrade is optional. Users can get 24,000 SKY per MKR when upgrading.

Market Trends

-The price of Bitcoin once plunged to around $58,000. Although the BTC ETF saw a large outflow yesterday after inflows of more than $200 million for two consecutive days, this phenomenon is difficult to explain by other market factors. Usually, market trends tend to be ahead of news.

-Ethereum's performance remains weak, with prices falling below $2,400. ETH ETF's trading volume has been weak since its launch, with little positive capital inflow, further exacerbating market concerns about its future trend.

-The altcoin market generally fell sharply, the overall market sentiment was depressed, trading activities decreased significantly, the prices of various tokens fell, and the market was silent.

Data indicators

Today, the AHR999 index is 0.65, and the current price is still suitable for long-term Bitcoin investors to make fixed investments. The fear and greed index is 30, indicating that market sentiment has returned to the fear stage, which usually means that there may be some bargain hunting opportunities in the market, but it should also be treated with caution.

Market Hotspots

1.Ton Ecosystem: TON continued to plummet, and the news of Durov's arrest was still fermenting in the market. Many celebrities, including Elon Musk, called for the rescue of Durov, but the market response was cold and Durov's concept token performed poorly. After DOGS went online, the price basically remained around $0.00125. In the case of a sharp drop in the overall market, DOGS still maintained a strong price, and the current circulating market value is about $650 million. This shows the relative stability of DOGS in the current market environment, which deserves investors' attention.

Macroeconomics: The three major U.S. stock indexes rose slightly, and U.S. bond yields continued to decline

The three major U.S. stock indexes closed higher, with the S&P 500 up 0.16% at 5,625.80 points, the Dow Jones up 0.02% at 41,250.50 points, and the Nasdaq up 0.16% at 17,754.82 points. In addition, the benchmark 10-year U.S. Treasury yield was 3.83%, and the 2-year Treasury yield, which is most sensitive to the Fed's policy rate, was 3.83%.

After Fed Chairman Powell released the strongest message so far on rate cuts, rate cuts seem to be a done deal. According to CME's "Fed Watch", the probability of a 25 basis point rate cut in September is 66%, and the probability of a 50 basis point cut is 34%.

Summarize

The current market shows obvious fear, and the prices of major cryptocurrencies and altcoins have generally fallen. However, individual assets such as BTC and DOGS have shown certain resistance to declines under certain circumstances, which deserves the attention of long-term investors. Changes in the macroeconomic environment, such as the possible interest rate cut by the Federal Reserve, may also bring new opportunities to the cryptocurrency market.

Investors are advised to remain cautious in the current market environment, pay attention to market sentiment and macroeconomic dynamics, and adjust investment strategies in a timely manner. For long-term investors, the current price level and market sentiment may provide certain fixed investment opportunities, but they still need to be cautious and avoid excessive risk exposure.