Bitcoin rebounded last week, up 4.5% to as high as $113,000 following signs of a slowing labour market in the US further fueling expectations of an interest rate cut by the Federal Reserve at its upcoming meeting on 17th September.
JOLTS job openings, ADP employment change and initial jobless claims earlier in the week came out lower than forecast. Friday’s main event, the non-farm payroll figure and unemployment rate, disappointed also, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
Similarly altcoins, as measured by the total market capitalization excluding bitcoin, rose 2% adding $30 billion as investors ‘nailed-on’ a rate cut.
The question now is how much of a cut will be seen? CME FedWatch is currently showing 90% chance of a 25 basis points cut, 10% chance of 50 basis points at time of writing.
The latest CPI consumer Price Index and PPI producer price index figures will be closely watched this week and could cause some volatility in markets.
BIGGEST MOVERS
$WLD worldcoin was one of the biggest movers in the last week, up 40%, following the launch of its anonymised multi-party computation (APMC) initiative in collaboration with global universities which is designed to strengthen Worldcoin’s quantum secure technology.
Worldcoin is currently trading at $1.2527, 860% away from the $12 all-time high seen in March 2024.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
First Dogecoin ETF could launch this week
REX-Osprey could launch the first ETF offering dogecoin exposure this week according to Bloomberg Senior ETF Analyst Eric Balchunas, subject to SEC review.
According to the filed prospectus, the proposed dogecoin ETF DOJE seeks to gain exposure to dogecoin through investments in a Cayman Islands subsidiary under the Investment Company Act of 1940 (40‑Act) framework, which regulates investment funds, rather than the Securities Act of 1933 like the bitcoin and ethereum spot ETFs approved in 2024.
As the 40 Act’s primary purpose is to regulate investment funds whereas the 1933 Act is generally for commodity-backed securities, trusts that simply hold the commodity and issue a share that represents a claim on said commodity, the SEC is generally more comfortable approving these ETFs under the 40 Act.
REX-Osprey already has experienced and been successful launching a crypto ETF under the 40 Act. In early July this year they launched the solana + staking ETF SSK which became the first ETF in the US to combine solana exposure with on-chain staking rewards.
Also mentioned in the filed prospectus are TRUMP and BONK, as well as the larger capitalisations cryptos BTC, ETH, XRP and SOL.
If the DOJE ETF does go live, ETFs for TRUMP, BONK and XRP could very quickly follow, in turn potentially causing a price rise in these cryptoassets.
Dogecoin is up 10% from last week, currently trading at $0.23373.
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