We Are Getting Close! 🚀
Inflation is cooling and the Fed Rate Cuts are next week. Survive September and thrive in October.
Hey Thinkers 💡
We received some good news this morning: the U.S. inflation rate cooled to 2.5% year-over-year in August, the lowest level since February 2021. This gives the Federal Reserve confidence to begin cutting rates, with the first cut scheduled for next Wednesday, September 18. The expected amount of the cut is 25 basis points.
It is anticipated that the rate cuts will be positive for the markets, as they will kick off the easy money cycle. This should also accelerate the downtrend of the Dollar Currency Index (DXY), which is favorable for risk assets. A break below 100 on the DXY would signal a "risk-on" environment for many investors.
However, we must first navigate through the remainder of September, which is historically unfavorable for markets. That said, October and beyond tend to be much better.
Here is some great data that was shared by Jeff Park from Bitwise asset management. He tweeted:
“September being terrible for BTC is only half the story. You also need to add in "sell in May and go away." Below is a chart of Bitcoin performance when held from Oct-Apr vs. May vs. Sep, spanning 10/1/2010 to 8/31/2024. The difference? A staggering 13,656,203% vs. +619.5%.”
Analyst Titan of Crypto shared news of the Bitcoin golden cross and tweeted, “In past cycles, every time a golden cross appeared on the 2-month chart, it led to a massive Bitcoin rally. Will this time be any different?”
Signs are pointing to Uptober, but as always, there are no certainties—only probabilities. I believe the higher probability is the bullish case, with both crypto and the stock market continuing to move higher.
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📰 Latest Crypto News:
Swift is embracing crypto - releasing an article today titled “Streamlining the global movement of digital assets and currencies” - source
The first presidential debate between Donald Trump and Kamala Harris ended without mentioning crypto.
CleanSpark buys seven bitcoin mining facilities in Tennessee for $30 million - source
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📈Crypto Market Metrics
Here are some key data points from Santiment
Top 10 Coins Trending via Social Media
Developer Activity
The top 10 coins with the most developer activity over the past 30 days
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📺 Recent Interviews
Tim Ogilvie, Kraken’s Global Head of Institutional talks about how institutions are investing & making money from Crypto.
Dan from 360 Trader talks about the Crypto Bull market not being over. He shares chart analysis and price predictions for Bitcoin, Ethereum, Solana, and XRP.
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📖 ReThinking Crypto Book
Get the book on Amazon
-Tony