Market Signal 17 September 2024: Crypto Market on Edge Awaiting The Fed Meeting

Update 17 Sep 2024 • Reading Time 4 Minute

Reading Time: 4 minutes

The market breathed a sigh of relief when BTC climbed back above the $60,000 mark over the weekend. Unfortunately, this positive sentiment was short-lived. BTC has retreated to the $58,000 level at the time of writing. Negative sentiment continues to surround BTC. This correction was expected and could even continue.

The decline in active Bitcoin addresses to 612,000 indicates that many users have stopped using BTC. There was a $1 billion outflow from BTC ETFs last week. Other factors, such as the weakening US economy and liquidations in the futures market, further reinforce the negative sentiment towards BTC.

The primary event that market participants are anticipating is the Federal Reserve meeting. In this meeting, the Fed is expected to announce a decision on interest rate cuts. According to the CME FedWatch Tool, 60% of market participants predict that the Fed will cut interest rates by 50 basis points.

The Pintu Academy team has compiled valuable insights from several crypto projects. We analyze that information to determine its potential impact on various asset prices. Will these be bullish or bearish catalysts? Find out in the following article.

It should be noted that all information in this Market Signal is intended for educational purposes, not as financial advice. Do your own research before making any financial decisions.

Thorchain (RUNE) ➡️ Bullish🚀

On September 14th, the Kujira community officially approved a merger with Thorchain. As a result, the Kujira community is now part of the Thorchain ecosystem under the name Rujira Alliance. The Rujira Alliance consists of Kujira’s three largest ecosystem partners: Fusion, Unstake, and Wink.

Before this partnership, Kujira was facing a balance sheet deficit due to poor risk management. Thorchain provided a solution by purchasing $3 million worth of Kujira's raised tokens. This collaboration led to integrating all Kujira applications into the Thorchain ecosystem.

The alliance aims to build a new application layer on Thorchain, a cross-chain liquidity protocol. Thorchain founder JPThor stated that this new application layer will encompass various major DeFi products, including order books, perpetual, token launchpads, NFTs, and money markets and lending.

I'm super excited to have the opportunity to build alongside @TeamKujira ecosystem and ship a flagship COSM-WASM chain with massive liquidity.

– well funded
– well organised
– well supported
– single brand and identity
– cohesive ecosystem

What is on offer here is not "another…
— JP.THOR | ACEL (@jpthor) September 9, 2024

Interestingly, this will connect to eight blockchains, providing exceptional scalability for the ecosystem. With integrated financial management through a “combined treasury,” THORChain and Kujira are expected to have significant power to dominate the DeFi market.

This latest partnership is positive news that will strengthen RUNE’s fundamentals. Therefore, the price of RUNE may experience a positive trend this week. Currently, RUNE is trading at Rp 58,947.

Solana (SOL) ➡️ Uncertain⚖️

The Solana Breakpoint conference will take place on September 20-21, 2024. This annual event, hosted by the Solana Foundation, brings together developers, investors, and Solana enthusiasts worldwide.

One of the event’s main highlights is the announcement of significant developments by Solana and its ecosystem projects. If these announcements are related to project advancements, they could positively impact the market.

Historically, the price of SOL has risen during Solana Breakpoint events. In Solana Breakpoint 2023 (October 30 – November 1, 2023), the price of SOL increased from $25 on October 20, 2023 to $47 on November 1, 2023. Similarly, in Solana Breakpoint 2022 (November 5-7, 2022), the price of SOL rose from $28 on October 25 to $39 on November 5.

However, this year, the price of SOL has shown a contrasting trend. In the past seven days, the price of SOL has decreased by 2.46% and has dropped by $8.09 in the past month. Therefore, the price movement of SOL is considered volatile this week.

Maker (MKR) ➡️ Uncertain⚖️

MakerDAO has recently launched a new governance token, SKY, and the stablecoin USDS. The launch is scheduled for September 18th, coinciding with the Token2049 event.

SKY, the upgraded version of MKR.

As the native governance token of the decentralized Sky Ecosystem, SKY will be available for MKR holders to optionally upgrade at a rate of 1 MKR to 24,000 SKY through the Sky Protocol.

Learn what you can do with SKY ↓ pic.twitter.com/3k9BHToniV
— Sky (@SkyEcosystem) September 10, 2024

With the introduction of the SKY ecosystem, holders of Maker’s stablecoin, DAI, can exchange their tokens for USDS at a 1:1 ratio. Meanwhile, MKR holders can upgrade their tokens to SKY at a ratio of 1:24,000. Additionally, holders of $DSR and $sDAI tokens can upgrade them to $sUSDS.

Concurrently with the launch of the SKY ecosystem, holders of $USDS can immediately stake their tokens to earn rewards in $SKY. However, there is no need to worry for DAI and MKR holders who do not wish to upgrade their tokens. MakerDAO has assured that existing DAI and MKR tokens will remain active.

“Both will remain active and will not be changed for foreseeable future unless the governance DAO decides otherwise,” the MakerDAO team wrote.

Fantom (FTM) ➡️ Uncertain⚖️

Sonic Labs is rumored to make a significant announcement at the Token2049 event, which starts on September 18th. So far, no official information related to this major announcement is from Fantom’s social media channels.

However, Fantom is nearing the completion of its new network testnet, Sonic. This testnet has yielded some impressive results. One of the notable achievements is Sonic’s ability to achieve 400ms for responsiveness and 720ms for finality. These figures set a new milestone in blockchain development.

If the announcement related to the Sonic network, such as a mainnet launch schedule or positive findings from the testnet, it could drive the price of FTM up in the short term. However, if the announcement is deemed insignificant, the price of FTM may not experience significant movement. Therefore, the token is considered volatile for this week

Token Unlock Agenda This Week

Pintu Academy will feature a list of protocols for token unlocks this week. Here is the list:

Nama Protokol	Jadwal Token Unlock	Jumlah Token Dibuka	Valuasi Token Unlock	Alokasi Token Unlock
Arbitrum (ARB)	17 September 2024	92,65 Million ARB	$49,68 Million	Core team and Investors
ApeCoin (APE)	17 September 2024	15,60 Million APE	$11,60 Million	Treasury, core team, and founders.
Space ID (ID)	22 September 2024	78,49 Million ID	$27,78 Million	Investors, core team, and ecosystem fund.

Source: Token Unlock

Furthermore, some other protocols that will conduct token unlock this week are Echelon Prime (PRIME), Pixel (PIXEL), Lista DAO (LISTA), dan Astar Network (ASTR). Notably, the total token unlock value this week exceeded $116 million.

In general, the token unlock agenda will increase the supply in circulation. If the holder of the unlocked token decides to sell their holdings and there is no offsetting demand, the token price will likely plummet. The greater the number of tokens unlocked, the greater the potential pressure generated.

However, a well-planned token unlock schedule can also strengthen the sustainability of a project. As the protocol evolves, token unlocks can motivate team members, boost community engagement, and promote ecosystem growth.