Weekly Market Insight: October Week 1

English

Market Updates

01 Oct 2024

Headline News

- Following China's economic stimulation package, Bitcoin price surged by 3.2% last week, regaining $66,524 on Friday. Bitcoin spot ETFs had $1.11 billion of net inflow last week and Ethereum spot ETFs also had $84.51 million of net inflow, its second week of net inflow.
- Bitcoin short-term holders are now back in profit with an average realised price of $63,000.
- Historically, October has been Bitcoin's strongest performing month, with a median return of 27.7%.

- U.S. economy shows signs of resilience in durable goods orders in August, remained unchanged despite previous month growth revised to 9.8% and contrasting with market expectations of a 2.6% drop. Additionally, final GDP in Q2 grew at the rate of 3%, matched with market estimation.
- However, the growth didn't translate to a higher core PCE price index, which increased only by 0.1% in August, lower than market expectation of 0.2%. Personal income and spending both increased by 0.2% in August, lower than the market estimation of 0.4% and 0.3% respectively.
- The market has been increasing the probability of a 50bps rate cut in November 2024 from 50% a week ago to 57%.
- China announced the largest stimulation package since 2020 with 20bps cut to 7-day repo rate, 30bps rate cut to medium term lending facility, 20 to 25bps rate cut to prime rate, 50bps reduction on existing mortgages, reduce 25% minimum down payment on homes to 15%, ¥500 billion swap facility, ¥300 billion in PBOC loans at 2.5% to commercial banks while stock market stabilization fund is under consideration, 50bps cut in reserve requirement, ¥1 trillion capital injection to state banks, with a possible further 25-50 bps cut before the end of the year depending on market conditions and several fiscal stimulus within the package.

- Tuesday, October 1, 1:55am: U.S. Fed Chair Powell Speech at the National Association for Business Economics (NABE) Annual Meeting
- Tuesday, October 1, 10:00pm: U.S. ISM Manufacturing PMI in September and JOLTs Job Openings in September
- Thursday, October 3, 10:00pm: U.S. ISM Service PMI in September
- Friday, October 4, 8:30pm: U.S. Non-Farm Payrolls and Unemployment Rate in September

- Remixpoint, a Japanese publicly traded power company, announced that it purchased crypto assets worth ¥750 million or $5.25 million.
- Kamala Harris stated the US should become dominant in blockchain, as well as other technologies such as artificial intelligence and quantum computing. This is her second time name-dropping crypto in a week.
- SEC approved BNY Mellon to offer crypto custody for Bitcoin and Ethereum ETFs.
- Paypal business accounts can now buy, sell and hold cryptocurrency.
- Binance announced the launching of Pre-Market trading for selected upcoming Launchpool projects. Binance founder and ex-CEO, Changpeng Zhao, was released after sentencing for 4 months in prison in April 2024.

- Duck Chain, the first TON EVM-compatible Layer 2 using Arbitrum Orbit, launched its testnet.
- Celo Alfajores Testnet successfully upgraded the network from Layer-1 to Ethereum Layer-2, a major milestone before mainnet migration. Mainnet migration date has not been confirmed yet.
- Celestia Foundation raised $100 million led by Bain Capital Crypto. The funding is reportedly raised by TIA OTC sales with a price of $3 and one-third of the token will be unlocked on October 31.
- Avalanche Foundation introduced Retro9000, a $40 million grant program to support developers who build subnet chains and developer tooling on the Avalanche9000 testnet.
- Babylon partnered with Ankr's RaaS solution, Asphere, to seamlessly launch Bitcoin Layer-2.

- Cega Finance, an exotic-derivatives protocol, introduced Vault Token Market (VTM), creating a marketplace for liquidity providers to buy or sell their vault tokens instantenously.
- Ethena introduced UStb, a yield-bearing stablecoin fully backed by Blackrock's tokenised money market fund, BUIDL. USDe would allocate with UStb if necessary in the negative funding rate environments.
- Trader Joe rebranded to Let's F***ing Joe (LFJ). LFJ also partnered with Doppel, a cybersecurity company, to detect and takedown fake domains and social media impersonation.
- Metaplex Foundation introduced Metaplex Aura Network, a decentralized indexing and data availability network that extends Solana and the Solana Virtual Machine (SVM).
- Router Protocol announced using 100% of the net revenue from Nitro (its cross-chain bridging platform) to buy back and burn ROUTE.
- Dolomite integrated Ondo's USDY, enabling token holders to borrow other assets by collateralizing their USDY.
- Aevo started its buyback process and brought back 1 million AEVO on September 26th.
- Aave V3 is officially live on the zkSync Era mainnet.
- Amulet Finance is officially live on the mainnet, introducing liquid staking and lending market for ATOM .
- LayerZero is now live on Bitlayer.

- DYDX token unlocked on October 1st, amount representing 4.92% of the token supply.
- SUI token unlocked on October 3rd, amount representing 3.13% of the token supply.
- IMX token unlocked on October 5th, amount representing 2.03% of the token supply.
- IO token unlocked on October 12th, amount representing 1.12% of the token supply.
- APT token unlocked on October 13th, amount representing 2.26% of the token supply.

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