Weekly Crypto News 9-14 September 2024: August CPI Released and Its Impact on Monetary Policy

Bittime - The latest data from the CPI and PPI for August provides a new picture of the condition of the United States economy. 

This information has a significant impact on the monetary policy the Federal Reserve (Fed) will take in the next few months. August CPI and PPI reports, as well as analysis, are presented here!

CPI Release Announcement for August Exceeds Expectations

Core CPI experienced a seasonally adjusted 0.3% in August. This figure is higher than market expectations of 0.20% and the previous value of 0.20%.

This increase indicates that inflationary pressures are slightly stronger than expected. The core CPI rate on an annual basis was 3.2%, unchanged from the previous month and in line with market expectations. 

While this figure shows stability, it is worth noting that the core inflation rate has declined for the previous four consecutive months. 

This shows that although inflation is still a concern, the downward trend in core inflation is starting to slow down.

United States PPI Released in August

On a monthly basis, the United States PPI for August increased by 0.2%, slightly higher than expectations of 0.10%. 

The previous value was also revised from 0.10% to 0%. On an annual basis, the PPI came in at 1.7%, slightly below expectations of 1.8%, but the previous value was revised down from 2.20% to 2.1%.

Implications for the Fed Monetary Policy

With CPI and PPI data just released, the focus now turns to how the Federal Reserve will respond to this information in its monetary policy. 

According to CME "Fed Watch", the probability that the Fed will cut interest rates by 25 basis points in September is 85%. 

This is a significant increase from the probability before the CPI announcement, which was at 71%. Meanwhile, the possibility of a 50 basis point cut in interest rates fell to 15% from the previous 29%.

Additionally, the cumulative probability of the Fed cutting rates by 50 basis points in November is 43.8%, while the probability of a 75 basis point cut is 48.9%. 

The cumulative probability of cutting interest rates by 100 basis points is at 7.3%. These figures reflect that the market expects the Fed to be more careful in reducing interest rates, especially after the release of the latest CPI data.

Also Read: X Empire Riddle of The Day September 15: Let's Win Prizes!

Collaborations Project in the Crypto Ecosystem This Week

This week, the crypto ecosystem is busy with collaborative projects. Among them:

• Lianchuang Treasure: The game's catalyst plans were hampered, ZKsync further helped the project to realize its vision.

• A “U businessman” in Gansu, China, was convicted of conspiracy and illegal profits were recouped from trading black and gray USDT.

• Pokeee.eth converted 8,239 ETH to 334 WBTC in the last 3 days.

• Financial Industry Regulatory Authority: 55% of Generation Z in the United States prefer to invest in cryptocurrencies.

• Data: The computing power of the fractal network exceeds 263EH/s, ranking fourth in the POW chain

• QCP Capital: Recommends locking in gains ahead of a rate cut and preparing for a bullish scenario.

• NexVault partners with Avenir Group.

Others Crypto Update

Apart from the information above, there are several other updates, namely:

• The GBFA AI+Web3 Asia Digital Economy Investment Forum will be held in Shenzhen on September 27.

• Data: ETH/BTC exchange bull James Fickel has lost around 18,000 ETH.

• Vitalik praised Danny Ryan for his contributions to the Ethereum ecosystem and emphasized his work on the PoW to PoS process.

• DeepLink has completed five phases of Public Sale, raising over $10 million in funding

• The total market value of stablecoins increased 0.64% in the past week.

• Nanhua Securities, a subsidiary of Nanhua Financial, was approved to provide virtual asset trading services to professional investors in Hong Kong.

• Akash will sponsor the AI-themed cruise ship event “DeYACHT” during Token 2049.

• NY Representative: Rather than trying to ban election prediction markets, regulators should focus on regulating them.

• Superfast founder deploys Solana validator node in Johannesburg.

• AI giant Openai is seeking to raise $6.5 billion at a $150 billion valuation.

• USDC circulation has increased by around 500 million in the last seven days.

• 10x Research: If interest rates are cut by 50 basis points next week, it could trigger risk aversion in the market and put pressure on the revival of risk assets.

• Data: Ethereum spot ETF historical cumulative net outflows reached $581 million.

• Analyst Rajat Soni: This bull market is dominated by institutional funds and is different in nature from the breakout of the 21-year bull market.

• Fractal Bitcoin mainnet transaction fees plummeted to just 6 Sat/byte.

• Deribit block options data: A user bought 2,400 ETH call options at the end of the year and sold 3,000 ETH call options.

• SEC softens stance on SAB-121, proposing rules that banks can hold client assets in “remote bankruptcy”

• Chances of the Fed cutting interest rates by 50 basis points in September increase to 50%

• Trader Q: Fidelity FBTC's financial behavior on Bitcoin is currently biased to the bullish side.

• Liquidity reassurance platform Eigenpie announces token economic model, airdrop accounts for 11%

• Ore founded Regolith Labs and completed US$3 million in funding

• Ethereum Foundation researcher Danny Ryan resigns.

• Common Stablecoin Protocol releases roadmap, will be TGE in mid-November

• Moonpay is registered with AUSTRAC in Australia to provide digital currency exchange services.

• SBF appealed its fraud charges, asking the court for a new trial.

• The Uniswap team/investor/advisor address transferred approximately $9 million UNI to Coinbase Prime

• Perhaps influenced by the official application of SBF, FTT rose to 1.37 USDT in the short term.

• OffChain Labs Lianchuang: In 2019, another ecosystem tried to “boil” Arbitrum for a large amount of money, but the team did not accept it.

• The advocacy group Coinbase launched, Stand With Crypto, created a $6 million NFT legal defense fund.

• Trump: Will not leave Truth Social.

• The crypto industry's political donations to the 2024 US elections have reached $190 million

• US SEC Chairman Gary Gensler has received numerous death threats.

• The S&P 500 and Nasdaq had their biggest weekly gains since November last year, and MicroStrategy rose 18.83% on a weekly basis.

• Polymarket shows the odds of a new debate between Harris and Trump have plummeted by 25%

• a16z crypto invested $1 million to co-create a creator defense fund.

• US SEC: Mentioning a so-called “crypto asset security” does not mean that the token is a security.

• The US SEC broadened the scope of its lawsuit against Binance and identified AXS, FIL, ATOM and other tokens as securities.

• People familiar with the matter: Tiger Global plans to participate in OpenAI's billion-dollar funding round.

• Bounce Brand: AUCTION Launchpad will launch on the TON network next week.

• The preliminary one-year inflation rate in the United States in September is forecast at 2.7%, compared with a forecast of 2.7%, and a previous value of 2.8%.

• Vitalik: Compared to AI and cryptographic applications, the potential application areas of the Metaverse have not yet been discovered.

• CertiK: 33 security incidents since early September resulting in approximately $55 million in losses

• Ronin: Ronin Waypoint Universal Account and Keyless Wallet Launched.

Conclusion

That's the update on weekly crypto news 9-14 September 2024. For information on the crypto ecosystem next week, you can listen to the Bittime blog.

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