Welcome to the morning summary of Asia Pacific: its essential summary of cryptographic developments during the night that the regional markets and the global feeling configure. Monday’s edition is the conclusion of last week and this week’s forecast, presented by Paul Kim. Take a green tea and look at this space.
The cryptographic market finally saw a significant impulse last week. From Sunday at 4:00 pm UTC, the price of Bitcoin had jumped 4.78%. The Altcoins rose even more, with ETH rising 7.72% and Sol shot at 22.65%.
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Increase rate rate of the hopes of the driving rally
The main driver behind the recent increase in crypto and other risk assets is the growing anticipation of interest rate cuts in the United States. This expectation intensified after the non -agricultural payroll figures of August (PFN) were published on September 5.
After that report, the markets are priced at 0.75 percentage points by the end of 2025 and 1.5 percentage points for September of the following year.
However, the Federal Reserve has doubted unilaterally rates, since consumer inflation remains stubbornly high, maintained stable in about 3%, well above its objective.
The recent market increase was mainly triggered by encouraging inflation data. On Wednesday, it was announced that the price index of the American producer (PPI) fell by 0.1% month by month, not reaching the anticipated increase of 0.3%. This marked the first decrease in producer prices in four months.
A closer look at the data revealed a remarkable detail: corporate gain margins in wholesale and retail trade decreased, particularly for machinery and vehicles. This suggests that companies absorb some of cost increases instead of completely passing consumers. Experts interpreted this as a sign that inflationary pressures are decreasing more than expected.
The US Consumer Price Index (CPI) of USA.. While the upward trend in inflation remained, the market felt relieved that the rhythm did not accelerate. In response, Bitcoin’s price recovered at $ 115,000 for the first time in two weeks.
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Ethereum’s price was initially mediocre earlier last week, but by Tuesday, capital flows to the ETF Spot market became positive, although slightly.
The real increase began after the IPC report on Thursday, with ETH rising more than 8% in just two days. Only on Friday, more than $ 400 million flowed to the spot ETF market, investing a two -week drop.
Solana, who had struggled to break the level of $ 210 for months, recovered for eight consecutive days. This strong impulse was evident in both futures and spot markets.
The fact that the open interest of Futures exceeded $ 8.1 billion even before the IPC data underlines the strength of this impulse. The rally has also revitalized the Solana ecosystem, with its total blocked value (TVL) exceeding $ 13 billion amid the increase in the use of defi.
Next week: Powell’s words are key
After a strong demonstration during the weekend, Bitcoin withdrew slightly at the level of $ 115,000, entering a consolidation period. Other important currencies such as ETH, Sol and Avax are also experiencing small price corrections.
This week’s most critical event will be the result of the meeting of the Federal Open Market Committee (FOMC) on Wednesday at 6:00 PM UTC. A percentage rate rate of 0.25 seems almost true. The key, however, will be the press conference of Fed Powell president. If you point out a will to cut future rates, Bitcoin could see more profits.
Other important data launches include US retail sales figures on Tuesday. If these numbers are too low, concerns about an economic deceleration could grow, which would probably negatively affect risk assets. We hope that investors have a profitable week.
