This year, the most far-reaching events in the crypto market are undoubtedly the approval of Bitcoin and Ethereum spot ETFs and the implementation of interest rate cuts. These two measures are of great significance to the entire crypto market.
Although interest rate cuts are a long-term positive factor, they will not immediately trigger a sharp rise in the market. The decision to cut interest rates has been basically confirmed. It is more like a sustained positive signal than a strong stimulus in the short term. This kind of long-term benefit takes time to brew and accumulate before it can have a significant impact on the market.
The passage of the Ethereum spot ETF has brought a significant positive impact to the encryption market, and it paves the way for traditional investment institutions to legally participate in Web3.0. With the entry of these institutions, a large amount of money will pour into the crypto market, further promoting its development.
According to a statement from the Paris Judicial Court, Pavel Durov is facing charges of providing "cryptography" services and tools without authorization. He is currently under trial and may be detained until August 28. According to data from the Polymarket website, the probability of being released in August is 26%.
San Francisco Fed President Mary Daly echoed Powell's dovish remarks in a speech last night. She said the labor market has achieved full balance, the time has come to adjust policy, and she believes it is appropriate for the Fed to start cutting interest rates.
Russia is about to launch a trial of cryptocurrency exchanges and plans to use digital tokens in cross-border transactions to help Russian companies affected by international sanctions solve payment difficulties. If Russia's move is successful, other sanctioned countries may follow suit. This is a positive for the crypto market as it is expected to further expand the market size and accelerate industry development.
This week's focus
Wednesday: Nvidia earnings release
If Nvidia's poor financial performance leads to a sharp drop in its stock price, the AI sector in the cryptocurrency circle may be dragged down and show a downward trend. You can consider shorting related assets at an appropriate time.
Friday: PCE data released
If the PCE data is lower than expected, it will have a positive impact on the market; conversely, if the data is higher than expected, it will bring bad news and may cause a wave of declines in Bitcoin.
Other market dynamics
Mentougou incident: A large amount of Bitcoin selling pressure still exists. It is expected that the market will fluctuate for at least two weeks in September, and Mentougou will continue to release 30,000 to 40,000 BTC in September. This will bring certain selling pressure to the market, but Bitcoin is still in a volatile pattern, so there is no need to worry too much about a sharp drop.
Geopolitical implications: Lower expectations for conflict between Israel and Iran, increased likelihood of peace talks. The conflict between Russia and Ukraine is also unlikely to escalate significantly in the near future. In addition, interest rate cut expectations bring long-term bullish signals to the market.
If the price of Bitcoin falls below $60,000, it is expected to rebound quickly. The market may fluctuate up and down in shocks, so it is recommended not to chase the rise, and at the same time remain patient, hold the currency in your hands and wait for the market to recover.
Potential altcoins worth paying attention to now
1.ZK
Zksync is one of the most watched cryptocurrencies this year. Although it performed poorly in the early days of listing, resulting in the loss of some of the profits of early investors, the current market trend shows that ZK is expected to become one of the most outstanding cryptocurrencies in the coming months.
Despite the initial drop, ZK has recovered more than 40% of its losses and is showing strong upward momentum. The current price action has pushed ZK’s market cap above $500 million, and this continued growth performance suggests that investors may see more optimistic gains in the coming days.
In addition, ZK's expanding use cases are also a potential driving force for its future price increases. In summary, regardless of ZK's previous performance, investors should pay close attention to the token, observe its price changes this quarter, and seize possible investment opportunities.
2.FLOKI
Floki (FLOKI), a meme cryptocurrency, has seen a sharp rise in price recently, up more than 33%. The market recovery has pushed FLOKI's price to $0.0001522, up more than 3% today. This upward trend is closely related to the recovery of the overall cryptocurrency market, especially the rise of Bitcoin, which may further drive FLOKI's value to double.
According to Coinglass data, the bullish trend in the FLOKI derivatives market is supported by an increase in trading volume and open interest. Trading volume increased by 0.39% to $268.59 million, while open interest surged by more than 3% to $14.22 million, indicating increased market confidence.
Additionally, Binance announced an airdrop of Simon’s Cat (CAT) emoji coins, which boosted FLOKI’s value. Anticipation from the Floki Inu community for this airdrop has helped push the token up 33.18% in the past seven days since the beginning of August, reversing a downward trend that had been going on since early June.
3.NULL
Nuls is a fast-growing blockchain infrastructure that provides modular architecture and cross-chain smart contract functionality. It also allows users to create projects in less time and at a lower cost through ChainBox.
Nuls has been performing strongly recently, with a gain of more than 60% in the past 24 hours. After Binance announced the launch of the NULSUSDT perpetual contract, the demand for the token surged, bringing higher profit opportunities to investors. At the same time, Nuls is also trying other projects to increase its market value.
In addition to the price increase, Nuls' trading volume also increased significantly today, with an intraday increase of more than 1080%. The launch of the contract has boosted investor confidence, and it is expected that Nuls may continue to rise in the new week.
