COMEBACK SURGE
Recently, Dogwifhat (WIF), a meme-based cryptocurrency on the Solana blockchain, experienced a sharp 38% price drop, causing it to fall out of the top 50 cryptocurrencies by market capitalization. The decline saw its market cap reach a low of $1.52 billion, allowing Fantom (FTM) to temporarily overtake it with a market cap of $1.65 billion. While some traders suggest WIF has entered an “accumulation zone,” crypto trader Blockgraze disputes this, citing a lack of clear buying activity. The drop also impacted futures trading, with the total value of all unsettled contracts decreasing by 25% to $209.64 million. However, despite this, WIF has bounced back, trading at $1.91 and reclaiming its place in the top 50, just behind Pepe (PEPE) with a market cap of $4.57 billion.
FEE FREE ETHEREUM
VanEck announced it will waive fees on its proposed spot Ethereum ETF until 2025, unless the fund reaches $1.5 billion in assets before then, after which a 0.2% fee will apply. This move aims to position VanEck competitively, especially against Franklin Templeton, which charges 0.19% for its Ethereum fund. The strategy echoes VanEck’s approach with its Bitcoin Trust, which has seen substantial inflows with a similar fee structure. Bloomberg Senior ETF Analyst Eric Balchunas highlighted the importance of fees in this emerging market, noting that BlackRock’s fee announcement is a critical missing piece. VanEck’s competitive pricing is designed to attract investors to explore Ethereum’s potential in their portfolios, even if it initially means financial losses for the firm. This comes as Ethereum prices remain volatile, recently trading below $3,300 amidst a general crypto market slump.
MIXED COMMODITIES
Gold prices declined, remaining in the low $2,300s per ounce as a strong dollar and key upcoming inflation data prompted traders to remain cautious. Spot gold fell 0.4% to $2,325.56 an ounce, while futures dropped 0.3% to $2,337.35 an ounce. Moreover, it is worth noting that despite an overnight dip in the dollar, uncertainty about U.S. interest rates kept the greenback in favor. In addition, other precious metals showed mixed results – platinum futures rose 0.4% to $1,016.55 an ounce, while silver futures fell 0.1% to $29.817 an ounce. Moreover, in the industrial metals sector, copper prices saw a slight rise, recovering from recent losses. However, concerns over China, which faces potential trade conflicts with the Eurpean Union and U.S., kept market sentiment fragile. As a result, benchmark copper futures on the London Metal Exchange increased by 0.4% to $9,703.50 a tonne, while one-month futures rose 0.5% to $4.4413 a pound.
STILL RESILIENT
Nvidia’s shares are showing signs of stabilizing after a massive $430 billion selloff pushed the stock into a technical correction, which is a drop of 10% or more from a recent peak. The stock rose by as much as 3.5% earlier this morning, potentially ending a three-day decline. In addition, analysts like Ari Wald of Oppenheimer remain optimistic about Nvidia’s long-term prospects, pointing out that its shares are still trading above key moving averages. Moreover, it is worth to remark that historically, Nvidia often rebounds on the fourth day of significant selloffs about 63% of the time, as stated by Daniel O’Regan of Mizuho Securities. Furthermore, let’s remember that the stock has soared this year due to high demand for its AI computing chips, climbing 43% since May and reaching a market value of $3.34 trillion in June. Looking ahead, technical analysts are keeping an eye on support levels around $115 and $100, with some, using Fibonacci retracement levels to gauge potential support. Thus, despite current volatility, driven by high options activity and broader market trends, experts believe Nvidia’s long-term uptrend remains strong. However, they caution that a drop below $100 could signal more significant issues, especially with upcoming elections and potential Federal Reserve rate changes adding uncertainty.
NO RECESSION EXPECTED
Treasury Secretary Janet Yellen has stated she does not foresee a U.S. recession and expects inflation to hit the Federal Reserve’s 2% target next year, sooner than the Fed’s 2026 projection. While Fed officials signal just one interest rate cut this year, Yellen anticipates inflation will decrease as rental prices stabilize, reducing overall shelter costs. Thus, despite record-high home prices, Yellen emphasized utilizing all tools to address housing affordability but refrained from speculating when the Fed might lower interest rates, highlighting data-dependence. Furthermore, Yellen criticized past corporate tax cuts for exacerbating the deficit without delivering promised investment benefits. The deficit is projected to reach $1.9 trillion in 2024. She noted President Biden’s budget plan aims for $3 trillion in deficit reduction over the next decade to maintain a stable debt-to-GDP ratio. Yellen concluded that with successful deficit reduction, the U.S. could remain fiscally sustainable even with higher interest payments on national debt.
