Affected by the decline of U.S. stocks and market panic, Bitcoin fell back to US$57,800 and Ethereum fell back to US$2,250.
Altcoins as a whole are also following the broader market in a correction, with the MEME coin sector performing the strongest, with TURBO, BABYDOGE, and NEIRO all rising against the trend.
The news worth noting is:
1. Binance launches MEME coin projects such as NEIRO, TURBO and BABYDOGE
Yesterday, Binance launched three MEME coin projects at once, sparking widespread discussion in the market.
The number one female investor of Binance responded that currently only the MEME coin project is popular in the market. In the absence of new narratives, Binance can only choose to follow the traffic.
This reflects that the entire cryptocurrency industry is in a period of confusion, lacking a clear direction, leading to intensified internal competition. No one is sure where the next innovation will come from.
The two key ingredients for a bull market are massive capital inflows and a strong narrative support.
The market currently lacks new narratives like DeFi in 2020 or GameFi in 2021, so MEME coins become a liquidity carrier. External funds may push up these MEME coins and make them mainstream in the short term.
Binance is also looking for a direction, not knowing which tokens can continue to develop. Competition between exchanges has intensified, and the big exchanges have to list the coins that only small exchanges dared to list before. In order to obtain the remaining liquidity in the market, Binance has become a liquidity supermarket.
Many people hope that Binance, as an industry leader, will not only follow the trend, but also lead the industry to find a new direction.
Although no one is clear about the direction at the moment, we hope to see meaningful attempts.
Binance has led the market through innovative models, such as IEO and BSC public chain. Although these attempts are not perfect, they are meaningful explorations.
The market is expecting a new narrative to drive the bull market, but the arrival of such a change is not controlled by individual will and requires patience.
However, we don't need to be too pessimistic. The reshuffle and reconstruction of the industry will come sooner or later.
The last thing the cryptocurrency industry fears is rebirth from the ashes. Bitcoin is an innovation at the level of human civilization, Ethereum’s infrastructure is gradually improving, and the US ETF is also attracting and breaking the circle for the crypto industry.
2. Expectations of a Fed rate cut trigger market volatility
The main reason for the decline was that the market was worried that a 50 basis point interest rate cut might mean economic problems.
Global markets were nervous amid expectations that the Federal Reserve would soon adjust its policy, with investors uncertain about the extent of the Fed's rate cuts and Powell's explanation.
U.S. Treasury yields continued to fall after the U.S. stock market opened due to concerns about the economy, gold prices remained high, and both U.S. stocks and cryptocurrency markets fell.
The market is now waiting for a critical moment: the Federal Reserve's interest rate decision at 2 a.m. on the 19th. If the rate is cut by 25 basis points, the market may rise.
If the rate is cut by 50 basis points, panic may intensify. After that, Powell's explanation at 2:30 is also very important. A clear explanation may trigger a rebound, otherwise panic will intensify.
3. The impact of the TOKEN2049 conference
The TOKEN2049 conference will open on September 18th. It is one of the largest Web3 events in the world, attracting 20,000 attendees and more than 500 events. This shows the influence of the crypto industry around the world.
However, there is a saying in the market that the market may fall during the summit. I wonder if the curse of falling during the summit can be broken this time.
The conference will be held from September 18 to 19, which coincides with the Federal Reserve's interest rate decision meeting.
In the short term, the market will fluctuate greatly, so those who play contracts should be careful.
In general, affected by the decline of US stocks, the crypto market is also following the correction. The current market focus is on the Federal Reserve's interest rate meeting.
Historically, the U.S. has cut interest rates six times, and the U.S. stock market has fallen. This is the seventh time, and the market is paying special attention to the performance of U.S. stocks and Bitcoin.
You can pay special attention to the Federal Reserve’s interest rate decision at 2:00 a.m. on September 19 and Powell’s speech at 2:30 a.m.