Bitget Research: US July PPI and CPI Data to Be Released This Week, Short-Term Market Decline Expected Due to Risk Aversion

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Bitget Research2024/08/13 07:53

By:Aaron & Tommy

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

In the last 24 hours, the price of BTC has fluctuated around $59,000, with the market in a phase of upward adjustment. The ETH/BTC rate briefly pulled back, presenting clear intraday trading opportunities. The highlights are as follows:

Sectors with strong wealth creation effect: New blockchains and Solana memecoins.
Top searched tokens and topics: SUI and Optimism.
Potential airdrop opportunities: Symbiotic and Yescoin.

Data collection time: August 13, 2024, 4:00 AM (UTC)

1. Market Environment

Over the past 24 hours, BTC has fluctuated around $59,000, with a noticeable narrowing of intraday fluctuation suggesting that the rebound phase might face resistance. The ETH/BTC rate has seen a significant rebound. Driven by community concerns that Bitgo, controlled by Justin Sun, may introduce centralization risks; this concern has led to WBTC weakening relative to BTC. AAVE has shut down its WBTC pool, and whales have been selling WBTC for ETH directly on the chain, causing a rebound in the exchange rate.

From a macroeconomic perspective, the US will sequentially release the July PPI and CPI data this Tuesday and Wednesday, with the PPI expected to grow by 0.2% monthly and the CPI by 3.0% annually. According to CME data, the market currently estimates the probability of the Federal Reserve cutting rates by 25 and 50 basis points in September at 49.5% and 50.5%, respectively. The upcoming PPI and CPI data will significantly impact the market's expectations regarding future rate cuts, with notable effects on the US Dollar Index and US bonds. Crypto assets may face a risk of downward adjustment ahead of this data release, and investors should be cautious.

2. Wealth Creation Sectors

2.1 Sector Movements – New Blockchains (SUI, SEI, and APT)

Primary reasons:

The new blockchain sector has been in a downtrend for an extended period, and in a market environment rebounding from being oversold, it was among the first to attract investment attention.
Recently, ETH's performance has been too weak, with institutions frequently selling off ETH in the secondary market, leading to investment in new blockchains which is supported by a consensus among investors.
Grayscale recently launched a crypto investment trust for SUI, which may directly lead to net capital inflows in the future.

Gainers: Over the past week, SUI, SEI, and APT have risen by 71%, 21%, and 20%, respectively.

Factors affecting future market conditions:

Future trend of ETH: ETH is a core competitor to new blockchains. If institutions continue to sell off ETH and the ETH/BTC rate keeps falling, there will be a consensus on the need for a new blockchain ecosystem capable of supporting users. Thus, there is room for strategic positioning in new chains.
Trend of ecosystem assets: It is crucial to monitor whether tokens within the ecosystem are rising along with SUI. Generally, a rise in SUI that drives up its ecosystem assets can extend the market trend. However, if SUI rises while its ecosystem tokens start to decline, it generally leads to a drop in the SUI too.

2.2 Sectors to Focus on Next – SOL Memecoins (WIF, BONK, and POPCAT)

Primary reasons:

The price of SOL has stabilized, firmly holding above the $140 mark. Recent record highs in trading volume on Solana's DEXes indicate active capital, which has spurred the rise of ecosystem projects.

Specific tokens:

WIF: A memecoin within the Solana ecosystem, previously listed on Robinhood. Generally, when SOL rises, the leading memecoins in Solana tend to appreciate even more rapidly.
BONK and POPCAT: Core memecoins on Solana, which have seen a recent increase in trading volume. The high demand for transactions suggests that these tokens have potential for strategic positioning.

3. Top Searches

3.1 Popular DApps

Optimism:

Optimism developers have unveiled a roadmap designed to establish an interoperability communication layer among Layer 2 chains within its Superchain ecosystem. This layer will include a messaging protocol, a SuperchainERC20 token standard, interoperability fault proofs, and a set of interoperable chains.

3.2 X (former Twitter)

Bitget Research: US July PPI and CPI Data to Be Released This Week, Short-Term Market Decline Expected Due to Risk Aversion image 0

SUI:

SUI has been notably active recently, with a 65% increase over the past seven days. Grayscale has launched new crypto investment products for SUI and TAO. A week ago, SUI integrated the Mysticeti consensus algorithm based on DAG technology, which not only decouples latency and throughput but also maintains high throughput to enhance network performance and security. Top lending projects in the SUI ecosystem, NAVI Protocol and Scallop, have seen their TVL increase by 120% and 50% respectively over the past week. Under SUI subsidies, the APY for supplying USDC and USDT on NAVI Protocol and Scallop has reached 15%-25%.

3.3 Google Search (Global and Regional)

Bitget Research: US July PPI and CPI Data to Be Released This Week, Short-Term Market Decline Expected Due to Risk Aversion image 1

Global focus:

SUI was described above.

Regional focus:

(1) Asia: The X Spaces event featuring Elon Musk and Donald Trump has captured high interest, with DOGE trending in Indonesia and Malaysia. In Singapore, SHIB is the top search, followed by AI tokens OLAS and FET. "RWA Crypto" and ONDO tokens are trending in Hong Kong, Vietnam, the Philippines, and Singapore.

(2) Europe: Search trends are diverse with no uniform characteristics. In France, popular searches include MAGA, ORDI, SUI, and VRA. In Belgium, SHIB and ONDO are trending, while in Switzerland, RENDER, CELO, FLOKI, and PEPE are gaining traction.

(3) CIS Region: Beyond the popular TON ecosystem, Solana ecosystem projects such as Sanctum and Debank are trending in Russia.

4. Potential Airdrop Opportunities

Symbiotic

Symbiotic is a universal restaking project that has completed its seed round funding with $5.8 million raised from investors including Paradigm and Cyber Fund. Symbiotic's TVL has surpassed $1 billion.

The project has launched its development network on the Ethereum Holesky testnet and plans to launch its mainnet later in the third quarter. The team notes that projects including Ethena, LayerZero, and Bolt are exploring the platform, which also features a customizable modular design that can accommodate any combination of tokens as collateral for restaking.

How to participate: Visit the project's official website, link your wallet, and deposit ETH and ETH LSD assets. Currently, Symbiotic's staking capacity is full, but interested participants can wait for the next opening to deposit funds.

Yescoin

Yescoin, a high-traffic Telegram mini app, began its Yes Summer promotion in August. The Yes Summer promotion announcement includes collaborations with numerous project developers and exchange wallets, distributing rewards totaling $1,000,000. https://x.com/Yescoin_Fam/status/1818913140295581817

Yescoin is partnering with Bitget Wallet. https://x.com/BitgetWallet/status/1821870001504317941 By participating in activities like opening treasure chests, inviting friends, and learning about blockchain within the Bitget Wallet, participants can earn future token airdrops and grab a share of the 100,000 BGB reward.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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