Bitcoin is breaking out right now and the memecoins are still fairly flat. Do they need the king of the cryptocurrencies to confirm its breakout first, and they follow, or are they going to continue their current relatively uninspiring price action? $DOGE price maintaining an uptrend Source: TradingView $DOGE is still the undisputed leader of the memecoins, but considering that we are arguably approaching the final stage of this bull market the price action is relatively uninspiring. That said, compared with most of the memecoins, $DOGE is at least maintaining an uptrend. The daily price chart above shows this uptrend, and reveals that a break to the up or the downside should take place soon. Obviously, if $BTC confirms its trend break, a breakout of the current triangle would likely be to the upside for $DOGE. At the bottom of the chart, the Stochastic RSI indicators have recently crossed back up again. A breakout of the triangle would leave the bulls gunning for the horizontal resistance at $0.245, before targeting a higher high at $0.255. $PEPE loses trend Source: TradingView The daily chart for $PEPE is fairly desultory. The price action recently lost the uptrend and now it remains to be seen whether it can gain it again. There is strong horizontal support just below, and support at the current price level could be held. If it is, the Stochastic RSI indicators at the bottom of the chart look as though they are going to cross back up, bringing the momentum for a potential break back above the ascending trendline. $PENGU forms a classic bull flag Source: TradingView After its astonishing 500% climb through June and into July, $PENGU has been putting in a series of lower highs and lower lows. This price action could be construed as a memecoin that was pumped to the highs and is now being discarded and left to deflate. However, this particular price action fits the bill of a classic bull flag, which is a continuation pattern. After the last touch of the bottom trendline of the flag, it might now be expected that the $PENGU price climbs back up to the top trendline, and breaks out from there. $PENGU is certainly one to keep an eye on. If Bitcoin does its thing, and memecoins follow, $PENGU could be one of the main gainers once again. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
The FTSE has finally broken free. After decades of grinding sideways, capped and capped again, the UKX has surged past its long-standing limits.
Jan van Eck, the CEO of global investment management firm VanEck, believes Ethereum will emerge as the leading blockchain as banks and financial institutions prepare for widespread stablecoin adoption. Speaking in an interview with Fox Business on Wednesday, van Eck argued that traditional finance cannot ignore the coming wave of stablecoin transactions and will eventually need to build on Ethereum or similar systems. “It’s very much what I call the Wall Street token,” he said, explaining that the future of banking will require seamless acceptance and settlement of stablecoins. “The winner is going to be Ethereum or something that uses Ethereum’s methodology, known as ECM.” His remarks come as the U.S. moves closer to a regulated framework for stablecoins. Last month, Congress passed the Genius Act , the country’s first federal law dedicated to payment stablecoins, which was later signed into law by President Donald Trump. The timing is significant: stablecoin supply has now surpassed $280 billion, underscoring their growing role in global finance. Banks Face Pressure to Adapt Van Eck suggested that as corporate adoption of stablecoins grows, banks that fail to adjust could lose relevance. A May 14 survey by Fireblocks revealed that 90% of institutional players are already exploring stablecoin usage in their operations. “Companies have to employ technology to enable stablecoin usage over the next 12 months,” van Eck said, adding that no institution wants to reject digital dollar transfers. “If I want to send you stablecoins, your bank has to figure it out, or you will find another institution that will.” The sentiment has been echoed elsewhere in the financial world. Earlier this year, Eric Trump, executive vice president of the Trump Organization, warned that banks unwilling to adopt crypto could face extinction within a decade. Ethereum ETFs and Corporate Treasury Momentum Van Eck’s confidence in Ethereum aligns with his firm’s own offerings. In July 2024, the U.S. Securities and Exchange Commission approved VanEck’s Ether exchange-traded fund (ETF), which tracks the price of ETH without holding the asset directly. The product has since grown to more than $284 million in assets under management. Meanwhile, Ethereum’s broader market appeal is being reinforced by corporate treasuries. Over the past month, companies including BitMine and SharpLink have collectively purchased more than $6 billion worth of Ether . The buying spree coincides with ETH reaching a new all-time high of $4,946 on Sunday, before easing slightly to $4,566 at the time of writing, according to CoinGecko. The post VanEck CEO Calls Ethereum the “Wall Street Token” as Stablecoin Adoption Rises appeared first on TheCoinrise.com .
September token unlocks will release about $4.5 billion in vested tokens, with roughly $1.17 billion via cliff unlocks and $3.36 billion via linear unlocks, potentially raising circulating supply for projects
COINOTAG reported on August 28, citing OnchainLens monitoring that a large SOL whale had unstaked 110,036 SOL — an amount previously unlocked 22 days earlier and valued at roughly $23.51
BitcoinWorld US Dollar’s Crucial Warning: September Rate Cut Looms The cryptocurrency market, ever-attuned to macro-economic shifts, is buzzing with anticipation as the US Dollar under pressure narrative intensifies. For crypto enthusiasts and investors, a weakening dollar often signals a potential bullish tailwind, making the growing September rate cut expectations a topic of paramount importance. As the world’s reserve currency faces significant headwinds, understanding these dynamics is not just for forex traders but for anyone navigating the intricate dance of global finance, including the burgeoning digital asset space. Why is the US Dollar Under Pressure Right Now? The mighty US Dollar, a bedrock of international trade and finance, finds itself at a pivotal juncture. Several factors are converging to exert downward pressure, prompting investors to re-evaluate its immediate and long-term trajectory. This isn’t a sudden development but rather the culmination of evolving economic indicators and shifting global sentiment. Economic Data and Softening Inflation A primary driver behind the dollar’s recent weakness is the consistent stream of economic data suggesting a cooling US economy and a steady deceleration in inflation. The Federal Reserve’s aggressive interest rate hikes over the past couple of years were designed to curb soaring prices, and it appears those efforts are yielding results. Key indicators such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, have shown a trend towards the central bank’s 2% target. Cooling Labor Market: While still robust, the US labor market has shown signs of softening. Job growth, though positive, has moderated, and wage growth, while healthy, is not accelerating at a pace that would reignite inflation fears. This provides the Fed with more flexibility. Retail Sales and Consumer Spending: Recent retail sales figures have indicated a more cautious consumer, suggesting that higher interest rates are beginning to bite into discretionary spending. A less exuberant consumer typically translates to lower inflationary pressures. Manufacturing and Services PMIs: While some sectors show resilience, overall manufacturing activity has remained subdued, and the services sector, though stronger, is also experiencing some moderation. Interest Rate Differentials and Global Central Banks Another crucial element contributing to the US Dollar under pressure is the narrowing gap in interest rate differentials. For a significant period, the Federal Reserve led the charge in raising rates, making the dollar an attractive currency for yield-seeking investors. However, other major central banks are now catching up or even hinting at more hawkish stances: European Central Bank (ECB): The ECB has maintained a relatively hawkish tone, keeping rates high to combat persistent inflation in the Eurozone. This has provided support for the Euro, which accounts for a significant portion of the Dollar Index (DXY). Bank of England (BoE): The BoE has also been grappling with stubborn inflation, maintaining elevated rates, which props up the British Pound. Bank of Japan (BoJ): While the BoJ has historically been an outlier with its ultra-loose monetary policy, there are growing expectations that it might begin to normalize policy, which could strengthen the Yen and further weigh on the dollar. As these differentials shrink, the incentive to hold dollar-denominated assets purely for yield diminishes, leading to capital outflows and dollar depreciation. Geopolitical Shifts and De-dollarization Narratives Beyond economic fundamentals, broader geopolitical shifts and ongoing discussions about de-dollarization also contribute to the dollar’s vulnerability. While the dollar’s status as the world’s primary reserve currency is not under immediate threat, various nations and blocs are actively exploring alternatives for trade and finance, particularly in response to sanctions and geopolitical tensions. This long-term trend, though slow, adds a layer of structural pressure. Unpacking the Growing September Rate Cut Expectations The market’s conviction that the Federal Reserve will initiate a rate cut by September has solidified considerably. This expectation is not merely speculative but is rooted in a careful interpretation of the Fed’s dual mandate – achieving maximum employment and stable prices – and its recent communications. The Fed’s Data-Dependent Stance Federal Reserve officials have consistently reiterated their data-dependent approach. This means that their policy decisions are directly influenced by incoming economic reports. As mentioned, the trend in inflation and employment data has been favorable, providing the Fed with the necessary room to consider easing monetary policy. Inflation Progress: The most significant factor is the sustained progress on inflation. With CPI and PCE showing consistent declines, the Fed is gaining confidence that inflation is on a sustainable path back to 2%. Employment Moderation: While the labor market remains strong, signs of moderation, such as a slight uptick in unemployment claims or a decrease in job openings, suggest that the economy is cooling without tipping into a severe downturn. This ‘soft landing’ scenario is ideal for a rate cut. Fed Officials’ Commentary: Recent speeches and interviews from various Fed governors and regional presidents have increasingly hinted at the possibility of rate cuts in the latter half of the year, provided the data continues to cooperate. While cautious, the tone has shifted from ‘higher for longer’ to a more flexible outlook. Market Pricing and the FedWatch Tool Financial markets, particularly through instruments like Fed Funds futures, actively price in the probability of future rate changes. The CME FedWatch Tool, a widely followed indicator, shows a substantial and growing probability of a September rate cut . This market consensus reflects the collective wisdom of thousands of traders and analysts, incorporating all available information. Historically, the Fed often moves in line with these market expectations, or at least aims to manage them to avoid market shocks. The increasing certainty around a September cut suggests that the market believes the Fed has enough evidence to act. What Does a Potential Fed Rate Cut Mean for Your Portfolio? A Fed rate cut is not an isolated event; it sends ripples across all asset classes, fundamentally altering the investment landscape. For both traditional and crypto investors, understanding these implications is crucial for strategic positioning. Impact on Traditional Asset Classes A rate cut typically signals a shift towards a more accommodative monetary policy, which can have diverse effects: Stocks: Generally positive. Lower borrowing costs for companies can boost profitability and encourage investment, leading to higher stock valuations. Growth stocks, which are more sensitive to future earnings, often benefit disproportionately. Bonds: Mixed. Existing bonds with higher yields become more attractive, potentially increasing their value. However, new bond issuances will likely carry lower yields, reducing future income for fixed-income investors. The yield curve might steepen if short-term rates fall more sharply than long-term rates. Commodities: Often positive. A weaker dollar, a common consequence of rate cuts, makes dollar-denominated commodities like oil, gold, and industrial metals cheaper for international buyers, stimulating demand. Real Estate: Positive. Lower mortgage rates can stimulate housing demand and make real estate investments more attractive, though the impact varies by market conditions. Here’s a simplified overview of how different asset classes might react: Asset Class Typical Impact of Rate Cut Explanation Stocks (Equities) Potentially Positive Lower borrowing costs, increased corporate profits, higher valuations, risk-on sentiment. Bonds (Fixed Income) Mixed Existing bonds with higher yields become more valuable; new bond yields will be lower. Commodities Potentially Positive Weaker dollar makes commodities cheaper for foreign buyers; increased demand. Gold Potentially Positive Viewed as a safe-haven asset and alternative to a weakening dollar; lower opportunity cost of holding non-yielding assets. Real Estate Potentially Positive Lower mortgage rates can stimulate housing demand and make property investments more attractive. Implications for the Cryptocurrency Market For the crypto world, a Fed rate cut is often viewed through a bullish lens. Cryptocurrencies, particularly Bitcoin, have at times exhibited an inverse correlation with the dollar, acting as a hedge against inflation or a flight to quality when traditional currencies face instability. Risk-On Sentiment: Lower interest rates generally foster a ‘risk-on’ environment. With less attractive yields from traditional safe assets, investors might be more inclined to allocate capital to higher-risk, higher-reward assets like cryptocurrencies. Dollar Weakness and Store of Value: As the dollar weakens, the appeal of alternative stores of value, such as Bitcoin, can increase. International investors might view Bitcoin as a more stable asset compared to a depreciating fiat currency. Increased Liquidity: A more accommodative monetary policy often leads to increased liquidity in the financial system. This excess capital can flow into various markets, including cryptocurrencies, boosting prices. Reduced Opportunity Cost: When interest rates are high, holding non-yielding assets like Bitcoin carries a significant opportunity cost. As rates fall, this cost diminishes, making crypto more appealing. Navigating Global Monetary Policy Shifts The Federal Reserve’s actions do not occur in a vacuum. Its monetary policy decisions reverberate across the globe, influencing other central banks, currency valuations, and international capital flows. Understanding this interconnectedness is vital for a holistic market perspective. Central Bank Divergence vs. Convergence Currently, we are witnessing a period where some central banks are still contemplating rate hikes or maintaining high rates, while others, like the Fed, are preparing for cuts. This divergence can lead to significant currency volatility and arbitrage opportunities. For example, if the ECB remains hawkish while the Fed cuts rates, the Euro could strengthen considerably against the dollar. Conversely, a synchronized easing cycle, where multiple major central banks cut rates in tandem, could signal a global economic slowdown but might stabilize currency markets relative to each other, albeit at lower rates. Impact on Emerging Markets Emerging markets are particularly sensitive to shifts in US monetary policy. A strong dollar and high US interest rates often lead to capital outflows from emerging economies, making it harder for them to service dollar-denominated debt. A Fed rate cut and a weaker dollar can reverse this trend, encouraging capital inflows and easing financial conditions for these nations. Challenges for Policymakers Central bankers face a delicate balancing act. They must manage inflation without stifling economic growth, respond to domestic conditions while being mindful of global spillovers, and maintain credibility. The path to a ‘soft landing’ is fraught with challenges, and any misstep could lead to renewed inflation or a deeper recession, impacting market sentiment and asset prices, including cryptocurrencies. Forecasting the US Dollar Outlook : Opportunities and Challenges The US Dollar outlook is complex, characterized by a confluence of opposing forces. While the immediate horizon suggests further pressure, several factors could still provide support or even lead to a rebound. Investors must consider a range of scenarios. Potential Bearish Scenarios for the Dollar Aggressive Fed Cuts: If the Fed cuts rates more aggressively than currently anticipated, or if a series of cuts follow the September move, the dollar could experience more substantial depreciation. Global Economic Rebound: A stronger-than-expected economic recovery in other major economies (Eurozone, China, Japan) could shift capital away from the US, weakening the dollar. Fiscal Concerns: Ongoing concerns about the US national debt and fiscal deficits could erode confidence in the dollar over the long term, though this is a more structural issue. Potential Bullish Scenarios for the Dollar Resurgent Inflation: If inflation proves more stubborn than anticipated, forcing the Fed to pause or even reverse its easing path, the dollar could find renewed strength. Global Instability: In times of significant global geopolitical or economic turmoil, the dollar often acts as a safe haven, attracting capital and strengthening its value, regardless of domestic interest rates. US Economic Outperformance: If the US economy significantly outperforms other major economies, it could still attract investment flows, supporting the dollar. Actionable Insights for Investors Given the nuanced US Dollar outlook , a diversified and adaptable investment strategy is paramount: Diversification: Consider diversifying across different asset classes and geographies. A portfolio solely reliant on dollar strength or weakness could be vulnerable. Monitor Economic Data: Pay close attention to key economic indicators (inflation, employment, retail sales) and central bank communications. These will be the primary drivers of market sentiment. Currency Hedging: For international investors or businesses, consider currency hedging strategies to mitigate volatility risks. Alternative Assets: Evaluate the role of alternative assets like gold and cryptocurrencies (e.g., Bitcoin) in your portfolio. These can offer a hedge against dollar weakness and provide diversification benefits. Long-Term Perspective: Avoid making hasty decisions based on short-term market fluctuations. Focus on your long-term financial goals and adjust your strategy accordingly. Conclusion: A Transformative Period for Global Finance The growing September rate cut expectations , driven by the narrative of the US Dollar under pressure , mark a potentially transformative period for global finance. The Federal Reserve’s evolving monetary policy , aimed at achieving a delicate balance between inflation control and economic growth, will have far-reaching consequences, influencing everything from stock markets to the price of commodities and the trajectory of cryptocurrencies. While a Fed rate cut typically signals a more favorable environment for risk assets, the nuanced US Dollar outlook demands careful consideration and strategic positioning from investors. Staying informed about these macro-economic shifts is no longer just for economists; it’s essential for anyone looking to navigate the complexities of modern financial markets. As the dollar’s dominance faces new challenges and central banks recalibrate their strategies, adaptability and a keen understanding of interconnected global forces will be your most valuable assets. To learn more about the latest Forex market trends, explore our article on key developments shaping US Dollar liquidity . This post US Dollar’s Crucial Warning: September Rate Cut Looms first appeared on BitcoinWorld and is written by Editorial Team