Bitget Research: Bitcoin Surges to $58,000 After Lower-Than-Expected CPI, Fed Rate Cut Likely Next Week Amid Market Volatility

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

Yesterday’s CPI data came in lower than expected, stabilizing the market after an initial decline. The Fed is expected to announce its interest rate decision next week, which is likely to trigger significant market volatility. The highlights are as follows:

• Sectors with strong wealth creation effects: DeFi blue chips (PENDLE and AAVE).

• Top searched tokens and topics: Fractal Bitcoin, Polymarket, and DOGS.

• Potential airdrop opportunities: Polymarket and Solayer.

Data collection time: September 12, 2024, 4:00 AM (UTC+0)

1. Market Environment

Yesterday's CPI data came in below market expectations, solidifying the likelihood of a 25-basis-point rate cut. Top crypto assets have stopped their declines and are showing slight rebounds. Major traders are now awaiting the Fed's interest rate decision next week. This will be the first rate cut after a prolonged period of high interest rates, which is expected to have a significant impact on the market, likely leading to heightened volatility next week.

On the ETF front, Bitcoin ETFs saw a net outflow of $43 million yesterday, while Ethereum ETFs had a $5 million outflow. This reflects market caution, as inflows and outflows remain subdued.

Meanwhile, Bitcoin's hashrate surged following the launch of Fractal Bitcoin, sparking industry-wide attention. Investors should monitor the project closely for future updates.

2. Wealth Creation Sectors

2.1 Sector Movements: DeFi Blue Chips (AAVE and PENDLE)

Primary reasons:

DeFi blue chips have shown strong resilience, primarily due to their continued importance in the ecosystem, even in a volatile market. Through continuous development and operation, the protocols have consistently performed well across various metrics. AAVE has seen record highs in user activity and steady growth in revenue, while Pendle's involvement in the LSD sector has yielded significant results. Pendle's future growth potential lies in its expansion into BTCFi, which could further boost its revenues.

Gainers: In the past 7 days, AAVE and PENDLE rose by 13.5% and 28.1%, respectively.

Factors affecting future market conditions:

• Total protocol asset size: Revenue generation is directly tied to the asset size each protocol manages. As their asset size increases, so too will their revenue, driving token price appreciation.
• Project updates: Recently, AAVE introduced a token buyback mechanism as part of its tokenomics update. This may prompt other DeFi projects to adopt similar strategies. It's recommended to keep an eye on product updates in the DeFi space, as positive news could present trading opportunities.

2.2 Sectors to Focus on Next – Solana Memecoins (BEER, WIF, and POPCAT)

Main reason: As SOL's price rebounds, panic around assets within its ecosystem has subsided. Temporary improvements in liquidity are driving up asset prices across the entire ecosystem.

Specific tokens:

￮ BEER: A memecoin in the Solana ecosystem. Futures data shows a significant influx of funds, resulting in increased volatility and suggesting that the upward trend may continue.

￮ WIF: A memecoin in the Solana ecosystem, previously listed on Robinhood. Solana memecoins tend to rise sharply when SOL gains.

￮ POPCAT: A key memecoin on the Solana ecosystem. Its trading volume has remained consistently high, increasing more than 50 times over the past year, which suggests a relatively stable token price.

3. Trending Searches

3.1 Popular DApps:

Fractal Bitcoin

Fractal Bitcoin is a scaling solution designed to gradually enhance the scalability of the Bitcoin network. It uses the Proof of Work (POW) consensus mechanism for validation and employs the SHA-256d algorithm for encryption, mirroring the structure of Bitcoin's blockchain. The Unisat wallet supports mainnet switching, and network validation requires ASIC machines. The network has a hash rate of 260 EH/s, and is supported by well-known mining pools such as AntPool, F2PooL, and SpiderPool. Projects in the ecosystem such as CAT 20 are garnering significant interest and media coverage. This project is gaining attention from communities, meriting ongoing observation.

3.2 X (former Twitter)

AAVE (Token)

This week, Aave announced the deployment of a dedicated market for EtherFi and weETH on its platform, allowing users to borrow stablecoins using weETH as collateral. DeFi projects on Ethereum, including AAVE and UNI, are performing well in the secondary market this week. On-chain data shows that some whales are gradually opening positions to buy AAVE and UNI. An address associated with Vitalik Buterin staked 950 ETH and 2.28 million USDC on Aave in the past 24 hours, signaling support for the project. AAVE has been performing well in the secondary market, with an overall increase of over 50% in the past month, maintaining stable growth and making it essential to stay informed on its developments.

3.3 Google Search (Global and Regional)

• Global focus:

Polymarket:

Polymarket is a project that allows users to predict market outcomes. All prediction events are initiated by the community, and participants can earn rewards if their predictions are correct. In a recent TV debate between US presidential candidates Donald Trump and Kamala Harris, the market favored Harris' performance over Trump's. According to Polymarket, Harris is currently leading in the presidential election odds. Given Trump's perception as a crypto-friendly candidate, it’s advisable to monitor Polymarket's data closely to track any changes in his chances of winning the election, so as to make more informed trading decisions.

• Regional focus:

(1) Telegram Bot has garnered major attention in regions like Africa and the CIS, with popular projects such as Dogs and Blum and trending searches from countries including Russia, Vietnam, and Ukraine.

Trending searches in Europe and America are less intense, focusing mainly on fundamental or older projects such as XRP, AKT, INJ, Glass, and KAS.

4. Potential Airdrop Opportunities

Polymarket

Polymarket is a project that allows users to predict market outcomes. All prediction events are initiated by the community, and participants can earn rewards if their predictions are correct.

Polymarket, a centralized prediction marketplace, has raised $70 million across two funding rounds. It secured $40 million in Series B funding led by Founders Fund in 2023 and $25 million in Series A funding in 2022.

How to participate: Although no official airdrop has been announced yet, community speculation suggests that users should register an account, bind a wallet, deposit USDC via the Polygon network, and participate in predictions to qualify for the project's airdrop opportunities.

Solayer

Solayer is building a restaking network on Solana, utilizing its economic security and superior execution as decentralized cloud infrastructure to enable higher degrees of consensus and block space customization for application developers.

In July 2024, Solayer announced the completion of a builder’s funding round, though the specific investment amount was not disclosed. Investors include Binance Labs, Solana Labs co-founder Anatoly Yakovenko, Solend founder Rooter, and Tensor co-founder Richard Wu.

How to participate: Stake SOL and supported SOL LST tokens such as jitoSOL, mSOL, bSOL, and INF to earn points each epoch. The mainnet is now live, and users who stake SOL can earn sSOL and platform points.