Our mission is to help you obtain financial freedom. Checkout Our Youtube Channel Checkout Our Youtube Channel

SEPTEMBER 15, 2023


Although Bitcoin had initially dipped below crucial support at $25,000, it has since risen over 6%, currently trading near $26,600; and as it continues to rally higher, the cryptocurrency has triggered a ripple effect on alternative cryptocurrencies like solana’s SOL as these types of altcoins, which had recently been heavily shorted, now face the possibility of leverage liquidations while also experiencing significant price surges. The release of positive China retail sales and factory output data was the reason behind the resignation risk appetite in financial markets, creating favorable conditions for further price gains in leading cryptocurrencies. Consequently, alternative cryptocurrencies such as XRP, Ether (ETH), SOL, Tron’s TRX, and Dogecoin (DOGE) are all following bitcoin’s upward trajectory. Let’s remember that just a few days ago, traders were selling off these tokens in anticipation of FTX potentially selling assets from its substantial holdings. This led to an over 8% decline in SOL after court documents revealed FTX’s solana holdings valued at $1.6 billion. However, as mentioned previously, the recent recovery has put altcoin bears at risk of liquidation on their leveraged bearish positions in SOL and other tokens, and the forced liquidation of these shorts is likely to introduce additional upward pressure on SOL’s price, resulting in a rally driven by short squeezes. Moreover, the increasing open interest, currently at a one-month high of $338 million, in active perpetual futures tied to SOL suggests a rise in bearish bets.


Last week, the number of Americans filing for unemployment benefits saw a modest increase after reaching a seven-month low the previous week. Despite the Federal Reserve’s efforts to cool down the economy, jobless claims rose to 220,000 for the week ending September 9th. Nevertheless, on a positive note, the four-week moving average, a less volatile measure, dropped to 224,500, indicating some stability in the job market. In fact, U.S. employers added 187,000 jobs in August, showcasing a healthy labor market. Furthermore, although the unemployment rate ticked up to 3.8 percent, it still remains low compared to historical levels. Moreover, it is worth noting that throughout the year, the U.S. economy has been consistently adding an average of 236,000 jobs per month, demonstrating strong growth. In addition, despite a slight decrease in job openings in July, they remain at unusually high levels compared to pre-pandemic times.


Based on the findings of a recent survey conducted by Bloomberg News, economists are predicting that the Federal Reserve will implement one more interest-rate hike before the end of the year, driven by the overall strength of the U.S. economy. The survey highlights that policymakers are likely to maintain interest rates at the current level of 5.25% to 5.5% during the September meeting, extending this status quo until May of the following year. While economists do not anticipate a final rate increase, they do expect the committee to include an additional rate hike projection in their economic forecasts. This upcoming meeting will be heavily influenced by the robust performance of the economy, characterized by predictions of higher economic growth and a marginally increased unemployment rate. Furthermore, it is expected that the committee’s projections for 2026 will reveal rates slightly above the long-term average, alongside expectations of sustained inflation levels.


According to Bank of America (BofA), equity funds have experienced the largest weekly inflow in 18 months, suggesting growing investor confidence in a positive outlook for the U.S. economy. Nevertheless, BofA strategist Michael Hartnett disagrees and warns of a bearish market sentiment due to the significant inflows into money-market funds this year. Despite global stocks attracting $25.3 billion in the past week, Hartnett believes that cash and Treasuries have been the primary beneficiaries and predicts a potential downturn. In addition, while U.S. equities have performed well this year, Hartnett suggests that the market may soon face selling pressure as the impact of tighter monetary policies becomes evident.


European Central Bank President, Christine Lagarde, has stated that policymakers are not currently considering interest-rate cuts. However, investors are already anticipating them, creating a disconnect between the two sides. Despite Lagarde’s message, the market has priced in potential rate cuts for 2024, potentially starting in June. This poses a communication challenge for the ECB as they try to align market expectations with their goals. Analysts believe that further rate hikes would worsen the economic situation, leading to expectations of rate cuts next year. However, uncertainties remain and European price pressures may persist longer than expected.

Inline Feedbacks
View all comments

More ClearValue Insights

Default Thumbnail

JUNE 24, 2024

CRYPTOS PLUNGED The cryptocurrency market is currently experiencing significant losses, marked by its second-largest weekly drop in 2024. This downturn reflects decreasing demand for Bitcoin exchange-traded funds (ETFs) and ongoing uncertainties surrounding monetary policy. An index from Bloomberg tracking the top 100 digital assets reported a 5% decline over the past week, the steepest since […]

Read More
Default Thumbnail


STOCK MARKET Dow Jones ended at $39,150.33 (+0.04%) S&P 500 ended at $5,464.62 (-0.16%) Nasdaq Composite ended at $17,689.36 (-0.18%) The stock market ended the week with mixed performances primarily due to the influential decline of the major player in the technology sector, Nvidia, which dragged down the S&P 500 and Nasdaq Composite. Meanwhile, the […]

Read More
Default Thumbnail

JUNE 21, 2024

STEEP OUTFLOWS It has been reported that as of yesterday, Bitcoin exchange-traded funds (ETFs) in the U.S. recorded their fifth consecutive day of outflows, losing over $900 million this week. Data from SoSoValue indicates that the 11 listed ETFs experienced a loss of $140 million on Thursday with $1.1 billion in trading volumes. Grayscale’s GBTC, […]

Read More