Bitget Hot Takes (September 12 - September 18)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
- Ethereum Merge declared a seamless success.
- Starbucks announced an NFT-based loyalty program via Polygon.
- SWIFT announced their blockchain pilot with seven securities players.
- DOGE flipped DOT to become the 10th-largest cryptocurrency.
- ‘Tis The Week: FOMC Meeting Final Decision on Wednesday (September 21)
Most Stubborn Out There
The U.S. CPI Release (we’ll talk about it later) brought back the red to all markets. And Ethereum Merge seems to be the start of a dump, with ETH losing 17.33% of its value after consecutive weeks of up only. Bitcoin also saw a 7.26% decrease in weekly returns, and so did most cryptocurrencies including BGB. Take a look at the chart:
It’s hard to escape the ‘red’ destiny of the whole market, but BGB Holders had a gentler landing compared to all its peers. With a drop of only 3.54% in returns, BGB once again shows its extraordinary ability to resist the market. Unconvinced? Below are our BGB reports for the last months:
The week didn’t end well. We are seeing new lows of the month as Bitcoin closed Sunday below US$19,400 and Ethereum below US$1,400.
Bitcoin price chart
Bitcoin difficulty has recorded a new all-time high, which means profitability impact for miners. Public mining companies also faced the hardship of falling stock prices: Marathon Digital Holdings (MARA), who owns 0.049% of the total Bitcoin supply, and Riot Blockchain (RIOT), who owns 0.032% of the total Bitcoin supply had five out of five days-in-red.
Bitcoin is still on its way down and has breached the US$19K level today (September 19). As the saying goes: ‘Let’s see if 19K holds’.
The silver lining of the last 7 days can be the partnership between Starbucks and Polygon, a move that will offer Starbucks users digitised ‘journey stamps’ aka NFTs whenever they complete a task (Starbucks quizzes for example) and collect these to secure an ‘immersive coffee experience’.
Also under the NFT umbrella is the return of Solana. Data demonstrates that 24H NFT Sales and Unique Buyers on Solana has been constantly on the rise since the beginning of September thanks to y00ts and ABC collections.
And Hong Kong has, again, proved themselves to be extremely crypto-friendly. The Hong Kong Securities and Futures Commission granted HashKey Capital the licence to manage a 100% crypto portfolio.
How Much Is The Next FED Hike?
The September CPI came in on September 13, 2022. The figure last month shows a phase-out in the U.S.’ recent CPI race, hence the 8.1% YoY and -0.1% MoM forecast by economists. If the actual numbers were to be the same or lower than projected, we could expect a less aggressive action from the Federal Reserve (FED) of 0.5% and less pain in equities and crypto markets.
However, that hope could not linger for long. Despite a drop in gas prices, September CPI results are 8.3% YoY and 0.1% MoM - a firm says for FED’s next hike of at least 75bps. These figures and the doom to come this week have made both equities and crypto tumble (remember the correlation between two markets?).
The only positive returns belong to the ProShares BTCUSDT">BTCUSDT">Short Bitcoin Strategy ETF (BITI), Coinbase (COIN) and ARK Next Generation Internet ETF (ARKW). It’s interesting how Grayscale Ethereum Trust (ETHE) achieves the biggest loser title even in the week of Ethereum Merge.
According to CME FedWatch Tool, 80% of the market is expecting a 75bps hike. In that case, Bitcoin price may see a relief because that scenario is (most likely) priced in. But we cannot rule out the possibility of a 100bps raise completely - market confidence in that possibility has increased by 20% since last Monday and 15% over the weekend.
Source: CME FedWatch Tool
What does it mean for investors? Well, 75 or 100bps, FED is making sure that inflation is curbed first even if it means unfortunate costs for households and businesses. Investors will of course respond more adversely to a 1% interest rate raise, creating a stronger spiraling down for Bitcoin, Ethereum, and other cryptocurrencies.
TL;DR: Watch the numbers on Wednesday closely!
The Latest Bitget News
In addition to Bitget Pop Grab - our new feature that helps connect friends and acquaintances in a fun way - we are glad to announce the launch of two more Bitget finesse: Bitget MegaSwap and Bitget Launchpool!
Bitget has never confined itself to the hardcore CEX model; the introduction of Bitget Savings, BGB Earn, and Bitget Launchpad earlier this year is the irrefutable proof. But we as the crypto natives know that it’s not enough for our users, who are passionate about the crypto industry as a whole. If Bitget users can now interact with several automated market makers (AMMs), one of the most influential innovations of the digital space, via Bitget MegaSwap and get access to 5,000+ tokens on Ethereum and BNB Chain, Bitget Launchpool incorporates the true spirit of DeFi into our platform: yield farming.
Check out Bitget Academy’s guides to Bitget MegaSwap and Bitget Launchpool here:
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