Macro Pulse Update 31.08.2024
The only indicator that I watch tells me its a buy signal
The Tether Ratio Channel is long.
This is supplemented by 4 bullish macro signs👇🧵https://x.com/arndxt_xo/status/1829901307257503845
Macro Pulse Update 31.08.2024, covering the following topics:
1️⃣ Macro events for the week
2️⃣ Bitcoin Buzz Indicator
3️⃣ Market overview
4️⃣ Key Economic Metrics
5️⃣ China Spotlight
1️⃣ Macro events for the week
Last week
Next week
2️⃣ Bitcoin Buzz Indicator
Crypto Market Updates
Bitcoin Dips to $58K, Faces Potential $15B Sell Pressure
Ethereum's 25% Drop Linked to Foundation's $100M Sale
BlackRock's Bitcoin ETF Sees $13.5M Outflow on August 29
Protocols and Projects
Cardano to Burn Genesis Keys Before Chang Hard Fork
Layer 2 Chains on Ethereum Face Rising Blob Fees
Proposal to Merge tBTC with WBTC Gains Traction
Curve Funding Proposal Receives Overwhelming Support
Crypto Exchanges and Platforms
WazirX Allocates $12M for Recovery Amidst Cyber Attack
Hamster Kombat’s HMSTR Token to List on Bitget, OKX
Legal and Regulatory Updates
Elon Musk's Dogecoin Manipulation Lawsuit Dismissed
Country-Specific Developments
Solana Spot ETF Raises $2.75M in Brazilian Public Offering
Naver Partners with Chiliz to Launch Crypto Wallet
Market and Investment
Ethena Whales Dump ENA, Signaling Market Crash
Robot Ventures Secures $75M for Crypto Projects
Gaming and Web3
NFL Rivals Year 2 Update Launches with New Features
3️⃣ Market overview
Crypto markets
Bitcoin dips below $60K: After pushing close to $65,000 over the weekend, the price of bitcoin pulled back aggressively on Tuesday night, dipping below $59,000. It was not clear what caused the slump. This volatility underscores the unpredictable nature of the crypto market and the importance of strategic risk management.
SEC targets OpenSea: The NFT marketplace said it received a Wells notice from the SEC indicating an upcoming enforcement action. This move could set a precedent for how NFTs are regulated, potentially reshaping the landscape for digital art and collectibles.
The stablecoin market cap, excluding algorithmic stablecoins, reached a new peak of $168.1 billion: Tether’s USDT led the growth with a 28% increase this year, now accounting for 70% of the total stablecoin market. As stablecoins continue to solidify their role in the crypto ecosystem, they may become increasingly integral to mainstream financial systems.
Celsius has repaid around $2.5 billion to 251,000 creditors, covering 84% of the $3 billion owed as part of its bankruptcy proceedings: The repayments have been long anticipated since the bankruptcy filing in July 2022. This progress might restore some confidence in the broader crypto lending market, though challenges remain for full restitution.
US Spot BTC ETFs saw $202 million in net inflows on Monday, marking the eighth consecutive day of positive flows: US ETH ETFs, however, have been seeing the opposite, with several days of consecutive outflows. This divergence may reflect shifting investor sentiment and a growing preference for Bitcoin as a safer crypto asset amid market uncertainties.
Macro Markets
U.S. Economy Growth: The U.S. GDP growth for Q2 2024 was revised up to 3.0% annually, driven by strong consumer spending and a rebound in corporate profits, despite weaknesses in business investment and exports.
Nvidia’s Potential Investment in OpenAI: Nvidia is in talks to invest $100 million in OpenAI, part of a funding round that values the AI startup at over $100 billion, reflecting Big Tech’s deepening involvement in AI amid growing regulatory scrutiny.
U.S. Stock Market Mixed Performance: On August 29, 2024, U.S. stock markets had mixed results, with the Nasdaq Composite falling 0.2% due to Nvidia’s 6.4% drop, while the Dow Jones Industrial Average hit its third record close in four days.
Trump’s Crypto Capital Plan: Donald Trump announced his intention to make the U.S. the “crypto capital of the planet,”
4️⃣ Key Economic Metrics
🟢 U.S. Labor Market Revision: The U.S. government revised its job growth data, showing that 818,000 fewer jobs were added in the 12 months leading up to March 2024 than previously reported. Despite this, job growth remains strong, averaging 178,000 new jobs per month, and the revision did not alarm investors, as it was largely expected.
🟢 Federal Reserve Rate Cut Expectations: The Federal Reserve is increasingly likely to cut interest rates in September, with discussions indicating confidence in inflation moving towards the 2% target and recognition of tighter monetary conditions even without rate changes. The only debate seems to be whether the cut will be 25 or 50 basis points.
🟢ECB Rate Cut Signals: In the eurozone, declining wage inflation and weakening employment indicators suggest that the European Central Bank (ECB) is likely to continue cutting interest rates in September, following an initial rate cut in June. The ECB’s July meeting minutes reflect an openness to further easing, reinforced by recent data showing economic weakening.
5️⃣ China Spotlight🔴
Focus on Boosting Domestic Demand: China is shifting its economic strategy to prioritize domestic demand, recognizing that its reliance on exports has led to excess capacity and deflationary pressures. Premier Li Qiang emphasized the need for stronger measures to boost consumption and improve economic circulation.
Private Sector Investment Challenges: The Chinese government acknowledges the weakness in private sector investment, particularly due to the property market slump and regulatory biases favoring state sector investment. Plans to improve the business environment for private companies include removing regulatory barriers and encouraging private participation in infrastructure projects.
Decline in Foreign Direct Investment (FDI): Inbound FDI has sharply declined, down 29.1% in the first half of 2024, partly due to geopolitical tensions. The government aims to take greater action to attract and support foreign investment, though this may be challenging given strained relations with the West.
Nuclear Power Expansion: The State Council approved the construction of five new nuclear power plants to boost economic growth and address climate change, with a goal of increasing nuclear energy’s share in electricity generation from 5% to 25% by the end of the decade.
Weakness in Consumer Spending: The biggest hurdle to boosting domestic demand is weak consumer spending, driven by a loss of household wealth from declining property prices. Government fiscal stimulus may be necessary to boost purchasing power, but this is complicated by concerns over local government debt levels.