Macro Update, Soft PPI Lifts Crypto, CPI Prints Today
What Moved the Market
- August PPI fell 0.1% MoM, vs a 0.3% increase expected, YoY at 2.6%, vs 3.3% forecast.
- Core PPI, excluding food and energy, declined 0.1% MoM, vs a 0.3% rise expected, YoY at 2.8%, vs 3.5% forecast.
- Bitcoin jumped from $112.3K to $114.3K in about two hours, most major crypto assets posted single digit gains.
Why It Matters
- PPI tracks inflation at the producer level, softer prints imply easing inflation pressure, the Federal Reserve gains more cover to cut rates, risk assets reacted accordingly.
What To Watch Today
- CPI releases this morning, prints below expectations should support prices, prints above expectations should weigh on the market, volatility is likely.
Into The Next FOMC
- The next Federal Open Market Committee decision is scheduled for Wednesday, September 17,
- After the PPI release, markets are pricing roughly a 92% chance of a 25 basis point cut, and an 8% chance of a 50 basis point cut.
Wolfy Wealth
Crypto Insights
Alpha, Bitwise Flags Solana Upside
The Thesis In Brief
- Bitwise CIO Matt Hougan points to a simple setup, spot SOL ETFs, corporate treasury demand, and Solana’s tech advantages, together imply upside, we agree with the direction of travel.
Catalysts To Track
- Spot SOL ETFs, seven managers have filed, including Bitwise, Grayscale, Fidelity, and VanEck, the SEC could rule by October 10.
- Treasury Bid, Forward Industries, ticker FORD, reportedly raised $1.65B from Galaxy Digital and others to acquire and stake SOL.
- Tech Upgrade, Solana is rolling out changes that target transaction finality near 150 milliseconds while keeping fees under one cent.
Positioning Take
- Hougan frames SOL today as analogous to BTC near $40K and ETH near $1,600, strong tailwinds could enable a rapid 3x scenario if catalysts align.
MYX Finance Airdrop
- MYX Finance ($MYX) conducted an airdrop of 1% of its supply, valued at around $200M, which was largely exploited by sybil addresses.
- The team acknowledged the issue and pledged to improve protections against future sybil attacks.
SEC Delays ETF Decisions
- The US SEC postponed decisions regarding Ethereum ($ETH) staking ETFs, stating it requires more time to review applications.
- Decisions on Franklin Templeton's spot ETFs for Ripple ($XRP) and Solana ($SOL) were also delayed.
Hyperliquid Stablecoin Governance
- Native Markets led the $USDH stablecoin governance vote with approximately 38% support from 8 validators.
- Paxos followed with 12% from 3 validators, and Ethena ($ENA) with 8% from 2 validators.
- About 42% of voting power, represented by 6 validators, has yet to cast a vote.
OpenEden Proposal
- OpenEden submitted a proposal related to the Hyperliquid $USDH stablecoin.
- The plan involves issuance via a Bermuda-based entity, collateralized with T-bills held at BNY Mellon.
- It offers around 4% yields for HYPE buybacks, plus 3% incentives in $EDEN.
VanEck ETF Filings
- VanEck is preparing to file for a Hyperliquid ($HYPE) staking ETF in the US.
- The firm also plans to introduce a similar ETP in the European Union.
Polygon Hard Fork
- Polygon ($POL) completed a hard fork to address a finality bug.
- The issue had been causing 10–15 minute delays in block milestone confirmations.
Linea Outage
- Linea ($LINEA) experienced an outage lasting about one hour.
- The team attributed the issue to a sequencer problem triggered after a large bundle was submitted via eth_sendBundle.
Scroll DAO Governance Pause
- Scroll ($SCR) DAO announced a temporary pause in governance activities.
- Co-founder Haichen Shen stated the team is currently redesigning governance structures.
Binance and Franklin Templeton Partnership
- Binance entered a partnership with Franklin Templeton to develop tailored digital asset initiatives.
- The collaboration aims to deliver institutional-grade solutions for a wide range of investors.
Kraken xStocks Launch
- Kraken introduced xStocks for European customers.
- Initially launched on Solana ($SOL), the service is expected to expand to Ethereum ($ETH), Solana ($SOL), and BNB Chain.
By Mike
Wolfy Wealth - Crypto Insights
Wolfy Wealth
Crypto Insights
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