Crypto Market

BTC and ETH Market Insight

The U.S. core PCE increased by 0.1%, marking the lowest rise since May. Following the release of the PCE data, the market‘s expectation for the Federal Reserve to cut interest rates by 50 basis points by November rose from 50.2% to 54.1%. Despite the current lack of crypto-native factors driving price increases, multiple elements in the macro environment are gradually gathering, potentially pushing the market higher. Despite a recent spike in Ethereum transaction fees from earlier lows this month, which has also increased the amount of ether burned, the number of active addresses on the network has dropped to a year-to-date low. Meme coins have caught up to the rest of the market in this recent rally, while AI coins have emerged as the top performers this week.

Options Market

The optimism fuelled by improving macro conditions continued to cheer the market up as we see increasing inflows into spot ETF. BTC reclaimed 66k for the first time since the pullback in early August. ETH was outpacing BTC early in the week hitting 0.0425 mark before giving back the gain at the end of the week - holding well above 0.04. Implied volatility drifted lower across the curve in tandem with realised volatility. ETH's IV maintained a 8% premium over BTC’s. Skew was quite steady with front-end skew being neutral and mid and long-dated skew being bullish.

Altcoins and Blockchain News

• CZ: Will continue to invest in blockchain/decentralized technologies, AI, and biotechnology. Giggle Academy progresses smoothly.

• 10x Research: Bitcoin is expected to reach a new all-time high in the short term.

• Eigen Foundation will lift the EIGEN transfer restrictions on October 1st.

• The USDC circulation increased by approximately $700 million over the past week, bringing the total circulation to $36.2 billion.

• Mind Network, a fully homomorphic encryption(FHE)  restaking layer, completed a $10 million Pre-A round of financing with participation from Animoca Brands and others.

• The TON network operated smoothly during the HMSTR airdrop claim period, and on-chain activities may continue to grow in the coming days.

• Analysis: BlackRock accumulated an increase of 7,808.46 BTC this week, accounting for 45% of the total net inflows into Bitcoin ETFs.

• Ethereum ETFs accumulated an increase of 31,522.88 ETH this week, with the main selling pressure still coming from ETHE.

• Plume Network and a16z have joined the Tokenized Asset Coalition (TAC), which aims to bring over $1 trillion worth of assets on-chain, promoting the adoption of public blockchains, asset tokenization, and institutional DeFi.

• StakeStone has opened the claim for EigenLayer's second season Stakedrop tokens.

Marco

The major indexes moved to new record highs, following the post rate cutting optimism: the DJIA added +0.6%, the S&P 500 added +0.6% and the NASDAQ +1.0%. Investors also celebrate the stimulus plan in China: The Shanghai Composite Index added +12.8%, and the CSI 300 increased by +15.7%.