In the crypto market report covering the week of September 9-16 prepared by the ICRYPEX Research team, we compiled current developments regarding crypto assets, price movements of crypto assets and macroeconomics.
You can take a look at the general flow of this report below, and access all the developments that took place in the 7-day period in the Weekly Crypto Market Reports: September 2, 2024.
Weekly Crypto Market Report September 9 Overview
Last week, we followed the correction movements and even the rise of financial markets that experienced major declines. Similar performance and significant price movements were experienced in cryptocurrencies that increased their correlation with US indices. The 50 basis point reduction possibilities that decreased after the US inflation announcement in line with expectations on Wednesday, started to increase again after the PPI data came on Thursday, allowing cryptocurrencies to reach the peak levels we saw on Friday.
When we examine the numerical data, we see that Bitcoin has returned to the $60,000 band with an increase of nearly 8.0%. Although there were many projects that were positively affected by altcoins during this process, Ethereum’s failure to gain enough strength caused Bitcoin dominance to rise to 58%, reaching its highest level in recent years. The total cryptocurrency market value remained above $2 trillion with an increase of 5.80%.
In ETF performances, we see that Bitcoin ETFs completed last week with an inflow of $400 million after a long series of outflows, and the $263 million inflow seen on Friday was the highest inflow amount seen since July. Although September is normally one of the most negative months seen for both stock and cryptocurrency markets, we expect ETF inflows to gradually become positive in the coming weeks as investors slowly return to the market and positive scenarios come true.
When we look back to this week, we see that the central bank meetings of major economies will take place. The US, UK, China and Japan are at the top of the list. The FED meeting to be held on Wednesday can be considered the most important financial event of 2024. Because it is estimated that the FED will start interest rate cuts with this meeting. The biggest question mark on the markets’ minds is whether the cut will be 25 basis points or 50 basis points. While the markets priced in the possibility of a 50 basis point cut at 30% last week, we saw that this possibility reached 60% at the beginning of this week.
The decision to be made on Wednesday and the projections of the FOMC members and Powell’s speech after the decision will allow us to make inferences about the direction of the market in the coming days. It is thought that even in the case of a 50 basis point reduction, which is normally considered a positive scenario, panic sales may be encountered as a result of the recession assessment in the markets.
Those who want to get more comprehensive information about the week covering September 2 – 9 can review the Weekly Crypto Market Reports: September 9, 2024.
