Daily News | BTC Oscillates Widely, Is the Altcoin Season Coming?
Crypto Daily Digest: Bitcoin is the best performing asset so far this year, with DOGE Whales increasing holdings
According to Farside Investor data, the net inflow of US Bitcoin spot ETFs was $233.8 million yesterday, with BlackRock IBIT net inflow of $96.5 million and Fidelity FBTC net inflow of $103.7 million.
Yesterday, there was no inflow or outflow of funds for the US Ethereum spot ETFs.
Report: Bitcoin remains the best performing asset so far this year
The New York Digital Investment Group (NYDIG) stated that despite experiencing a “seasonally weak” third quarter, Bitcoin remains the best performing asset so far this year. NYDIG research director Greg Cipolaro stated in a report on October 4th that sales in the third quarter only increased by 2.5%, rebounding after a decline in the second quarter but hindered by large-scale sales during the same period.
Cipolaro stated, “Bitcoin remains the best performing asset class in 2024, but its lead has narrowed.” Bitcoin has risen 49.2% so far this year. For most of the past six months, trading has remained range bound due to significant resistance such as the distribution of Mt. Gox and Genesis creditors (totaling nearly $13.5 billion) and the massive sell-off of BTC by the US and German governments.
Cipolaro added that other assets such as precious metals and certain stock industries have risen relative to BTC, and most asset classes have had a ‘brilliant year’. Bitcoin also rose 10% against the trend in September, which is usually a bearish month for the asset.
DOGE Whales increased holdings of DOGE tokens worth over $230 million last week, reaching the highest level since January this year
According to IntoTheBlock, Dogecoin whales purchased a total of 2.07 billion DOGE tokens (approximately $231 million) last week, the highest level since January of this year. Or it indicates that investors’ interest in DOGE is on the rise, and this large-scale accumulation behavior is often seen as a signal of price increases.
Fed’s Musalem: Further interest rate cuts may be appropriate, but it is hoped that further cuts will be gradual
According to BlockBeats News, On October 8, St. Louis Fed President Muhammed stated that he supports the Fed’s decision to cut interest rates by 50 basis points last month, but emphasized that he prefers further rate cuts to be gradual. Considering the current economic situation, it is believed that the cost of too early and excessive relaxation is greater than the cost of too late and too little relaxation. Over time, further gradual reduction of policy interest rates may be appropriate. Predict that the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures Price Index (PCE), will converge to 2% in the coming quarters.
Market Trends: POPCAT surpassed the $1 billion mark, is the Altcoin season coming?
Market Hotspots
The NEIROCTO, MEW, POPCAT and other tokens in the Meme sector have seen a significant increase. NEIROCTO is the leading token in this round of market trend, leading the overall market increase. POPCAT and MEW are cat meme tokens on the Solana chain, with POPCAT continuously setting new historical highs and becoming the first cat meme coin with a market cap exceeding $1 billion;
Polifi tokens in the US political arena collectively surged, with MAGA, STRUMP, TRUMP, and others experiencing significant increases. The date of the US presidential election is approaching, and related political concepts such as meme tokens may experience hot speculation;
Public chain sectors such as SUI and SAGA rose, while established public chains such as ETH and SOL performed poorly. After a large unlocking, SUI continued to rise, with a market cap of nearly $20 billion. SUI is the leading project in the public chain sector in this round of market trends;
Fan coins, such as OG, SANTOS, LAZIO, PORTO, and others, have surged. The fan coin sector usually experiences collective buying during market downturns, and according to past data, the sustainability of fan coin buying is relatively poor.
Mainstream Coins
BTC oscillates widely between $60,000 and $64,000, leading to a decrease in BTC dominance and the Altcoin season is coming;
ETH oscillates narrowly and currently remains around $2,450, with low trading volume and fund inflows for ETH ETFs;
Altcoins are generally rising, and the market lacks fresh hotspots. The meme sector remains the top priority for speculation in the market.
Macroeconomics: The three major US stock indices collectively closed down, while US bond yields rose
The three major indexes of the US stock market collectively closed down, with the S&P 500 index falling 0.96% to 5,695.94 points; The Dow Jones Industrial Average fell 0.94% to 41,954.24 points; The Nasdaq index fell 1.18% to 17,923.90 points. The benchmark 10-year Treasury yield is 4.03%, while the 2-year Treasury yield, which is most sensitive to the Fed policy rate, is 3.99%.
The yield curve of US two-year/ten-year treasury bonds turned negative for the first time since the Fed 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 within the year.
Conclusion
Last Friday, the net inflow of the Bitcoin spot ETFs was nearly $494 million, and the Ethereum spot ETFs also reported a net inflow of $58.7 million. In addition, tokens such as SUI and OP will be unlocked in the coming days, with a total value of roughly $295.7 million. Overall, the volatility of the crypto market remains high, with Bitcoin and Ethereum performing differently.
Looking ahead, the release of the US ADP employment report and non-farm payroll data may impact market sentiment and trading decisions. If Bitcoin remains above key support levels, we may see a renewed focus on small coins such as SUI and OP, especially as they are about to be unlocked. However, if Bitcoin fails to maintain above $64,000, it may face significant downward pressure.
