Daily Summary:

• BTC ETF resumes large inflows

• Sky announces divestiture of WBTC

According to Farside Investor data, the U.S. spot Bitcoin ETF had a net outflow of $52.83 million yesterday, of which GBTC had a net outflow of $8.13 million and ARKB had a net outflow of $43.41 million. BlackRock IBIT had no inflows or outflows.

The U.S. Ethereum spot ETF had a net outflow of $9.71 million yesterday, of which Grayscale ETHE had an outflow of $14.7 million and BlackRock ETHA had a net inflow of $4.95 million.

Data: The 30-day increase in short-term Bitcoin holders has fallen to the lowest level since 2012, which may hinder price breakthroughs

CryptoQuant data shows that the 30-day increase in Bitcoin short-term holders (STH) has fallen to its lowest level since 2012. Julio Moreno, head of research at CryptoQuant, said this may limit Bitcoin's ability to break out of the current price range.

Data shows that Bitcoin supply is shifting towards long-term holders (LTH), which are addresses that have been held for more than 155 days. While the accumulation of Bitcoin by long-term holders is a prerequisite for price appreciation, Moreno emphasized that Bitcoin still needs new demand from short-term holders to sustain price increases. Moreno added, “We still haven’t seen significant new demand from short-term holders.”

Sky's proposal to divest WBTC passed, to be implemented on October 3

Lending platform Sky (formerly MakerDAO) has passed a proposal to divest $200 million of its WBTC collateral exposure. The vote began on Monday and lasted three days, with 88% of participants voting in favor of abandoning wBTC and five separate proposals to implement a five-step exit process. About 12% abstained. Following the vote, Sky will move forward with the delisting of WBTC, with the first phase starting on October 3 and the final phase ending on November 28.

BA Labs cited the risks of Tron founder Justin Sun’s involvement with the underlying asset’s custodian, BiTGlobal, in its proposal to divest WBTC. WBTC’s original custodian, BitGo, announced in August that it planned to transfer control of the asset to a joint operation with BiT Global, whose custodial operations are based in Hong Kong.

Standard Chartered Bank: Bitcoin and crypto markets will continue to rise after the Fed cuts interest rates

Standard Chartered analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve’s recent rate cut, driven more by favorable macroeconomic conditions than the outcome of the U.S. presidential election.

“Digital assets are the top performers in terms of performance for the first time since the FOMC meeting. This is true despite Polymarket showing Harris at 52/47 today,” Kendrick noted in an email Thursday. He attributed the positive performance to macroeconomic drivers starting to outweigh election-related uncertainty.

Kendrick insisted that the U.S. presidential election is no longer as influential on Bitcoin prices as it used to be. “While the U.S. election is important, macro drivers are starting to take over,” he said, adding that he is monitoring the difference between short-term and long-term U.S. Treasury yields as an indicator of market conditions that are favorable for digital assets. “I look at the U.S. 2s10s curve, and a steeper U.S. yield curve is good for digital assets.”

Market analysis: BTC ETF resumes large inflows, meme sector leads the market

Market Trends

-BTC once approached $64,000 in the early hours of this morning, and is now consolidating around $63,000. BTC ETF has resumed large inflows, and the overall market sentiment is positive;

-ETH finally started to rise slightly after the overall rebound of the market, and there was no inflow/outflow of funds in the ETH ETF yesterday;

-The altcoin market rebounded sharply, with the meme sector being the best performing sector, and MEW, BILLY, and NEIROCTO being the best performing tokens;

- In terms of data indicators, today's AHR999 index is 0.71, and the current BTC price is still suitable for long-term fixed investment; the fear and greed index is 54, and market sentiment is gradually heating up.

Market Hotspots

1. Meme sector: MEW, TURBO, BILLY and other tokens surged, and the overall growth of the meme sector led the market. MEW was listed on the Korean trading market, and the new fiat currency trading pair stimulated the price of MEW.

2. Modular blockchain: Modular blockchain protocol tokens such as SAGA, DYM, ALT, and TIA all rose collectively. SAGA is a modular game public chain built on cosmos. The GameFi sector of the market has recovered, driving the rise of game infrastructure projects. TIA will usher in a large amount of unlocking next month, and there is currently a possibility of pulling up the market before unlocking to improve liquidity.

3.Solana Ecosystem: SOL returned to $140, with a daily increase of 7%. Solana ecological projects generally rose, with POPCAT, FIDA and others soaring. Solana officially announced the launch of the second-generation Web3 mobile phone.

Macroeconomics: US stocks continue to hit record highs, excessive interest rate cuts may trigger a stock market bubble

After the Federal Reserve announced a 50 basis point interest rate cut, the U.S. stock market experienced a significant rise. Today the Dow rose 522.09 points, or 1.26%, to close at 42025.19 points; the S&P 500 rose 95.38 points, or 1.70%, to close at 5713.64 points; the Nasdaq rose 440.68 points, or 2.51%, to close at 18013.98 points. The Dow and S&P 500 both hit record highs.

There are different views on the Fed's future rate cut pace. Financial institutions such as Goldman Sachs and JPMorgan Chase have adjusted their forecasts, but generally believe that the Fed will continue to cut interest rates in the future to support economic growth. However, some analysts have warned that excessive rate cuts may trigger risks such as stock market bubbles.

Summarize

The prices of BTC and ETH may continue to rise with ETF inflows and positive market sentiment. The AHR999 Index and the Fear and Greed Index show that the current market sentiment is relatively optimistic and suitable for long-term investment. The strong performance of the meme sector and the modular blockchain sector may attract more capital inflows, driving a further rebound in the overall altcoin market.

Solana ecosystem projects may continue to be popular in the market with the good news of the official new product release. In terms of macroeconomics, the Fed’s interest rate cut policy may boost market confidence in the short term, but we need to be wary of the risk of a “hard landing” of the US economy.

Overall, with the gradual warming of market sentiment and the strong performance of various tokens, the cryptocurrency market is expected to continue to rebound in the short term. However, investors should remain vigilant, pay attention to macroeconomic and market dynamics, and adjust their investment strategies in a timely manner.