MARKETS week ahead: September 1 – 7
Last week in the news
The PCE data were the ones to shape investors confidence during the previous week. Data on inflation, personal income and personal spending showed some potential for both rate cuts, and also continuation of high corporate earnings. The US equity markets benefited the most from such market expectations, with S&P 500 surging by 1%, ending the week at 5.648 points. The US Dollar gained in strength during the week, however, the price of gold was not in a mood to follow the negative correlation, ending the month at the level of $2.503. Treasury yields are correcting in line with investors expectation, closing the week on a higher grounds of 3.9%. The crypto market was left aside during the week, with BTC dropping below the 60K.
The Personal Consumption Expenditures Price Index is one of the favorite Fed's inflation gauges, which is why the indicator is closely watched by market participants. Posted data are showing further drop of index in July to the level of 2.5%, y/y which was lower from forecasted 2.6%. The same was with core PCE data, where the indicator reached 2.6%, while the market was expecting to see a figure of 2.7% y/y. For the same period, personal spending was increased by 0.5% for the month, while personal income was higher by 0.3% on a monthly basis. Increased spending was something that caught the eye of both investors and analysts, who are now correcting their GDP growth expectations for the US for this year, but also expecting for corporate earnings to continue their uptrend also during the third quarter.
Last week, the news covered the topic of a potential further rate hike by the Bank of Japan. Although the majority of analysts are of the opinion that BoJ will not hike interest rates in October, there is some consensus that the year 2025 might certainly bring another increase of interest rates as inflation is picking up in Japan. This question represents a relevant topic considering that there is still a significant outstanding amount of carry trades, which ended up in the US equity and crypto markets.
Since recently there has been a huge discussion among market participants over the sale of Apple stocks held by Berkshire Hathaway, while the recent filings are showing that Warren Buffet is also selling shares of Bank of America. BoFA was the third largest stock in Berkshire's portfolio, but was gradually decreased. There is no further explanation from the company on such a move. Analysts are noting that Berkshire continues to stock cash, which currently is at a record high of $227 billion.
Since last week, Elon Musk's platform X has been officially suspended in Brazil. The Brazilian Court brought up such a decision after X failed to appoint the official court representative. The court case is investigating the involvement of the platform in spreading misinformation during the government of the former Brazilian President Bolsonaro.
As Cointelegraph is reporting, the selling pressure on BTC might continue through another settlement tranche of failed crypto exchanger Mt. Gox, which is due in September. As noted, Mt. Gox will distribute another 46.000 BTCs with current market value of 2.7B.
Crypto market cap
The optimism on the crypto markets was put on hold during the previous week. Markets were more focused on inflation data, through posted PCE, a Fed's favorite gauge. On the other hand were analysts and investors who perceived increased consumer spending in the US as a positive sign that Q3 corporate earnings might follow the path of previous quarters. Another information should not be overlooked, which is the expectation that another tranche of distribution of BTCs by failed crypto exchanger Mt. Gox might put additional pressure on BTC in September. This combination led to the week in red for the crypto market. Total crypto market capitalization decreased by 9% on a weekly basis, erasing 195B from the market value. Almost all coins finished the week in red. Interestingly, daily trading volumes decreased compared to the week before, from 160B to 103B on a daily basis. Total crypto market capitalization increase from the end of the previous year currently stands at $ 394B, which represents a 24% surge from the beginning of this year.
Almost all coins were traded lower during the previous week. In nominal terms, BTC lost the most from all other coins, losing 105.5B in value or 8.3%. ETH took the second place with a drop in value of 34.3B or 10.2%. BNB was another coin with a significant drop in market cap of 8.2B or 9.5%. Market favorite Solana was among significant weekly losers of 12B, which represents 16% for this coin. Drop of more than $ 1B includes coins like Polygon, which was down by 27.3%, Polkadot dropped by 16.4%, ADA was traded lower by 13.6%, DOGE dropped by 11.2%. Among higher weekly losers in relative terms were ZCash with a drop of 25.3%, Maker was down by almost 20%, OMG Network dropped by 21.6%. The majority of other coins lost somewhere between 10% and 20%.
In line with a drop in value, there have been movements when coins in circulation are in question. Filecoin added 0.3% of new coins to the market. Polkadot and Polygon increased the number of circulating coins by 0.2% w/w, while this week EOS added 0.4% more coins. Tether increased the number of circulating coins by 0.3% and also increased its market cap by this percentage.
Crypto futures market
In line with the spot market, the crypto futures were also traded lower. BTC futures ended the week lower by around 7.9% for all maturities. Futures maturing in December this year ended the week at the level of $60.890, while those maturing in December 2025 closed the week at $66.905. The futures dropped below 70K for one more time during the month.
Similar situation is also with ETH futures. Short term ones were traded lower by more than 9%, while the long term ones dropped by 8.9%. Futures maturing in December this year ended the week at the level of $2.577, and those maturing a year later were last traded at $2.773, for one more time below the 3K level.
The PCE data were the ones to shape investors confidence during the previous week. Data on inflation, personal income and personal spending showed some potential for both rate cuts, and also continuation of high corporate earnings. The US equity markets benefited the most from such market expectations, with S&P 500 surging by 1%, ending the week at 5.648 points. The US Dollar gained in strength during the week, however, the price of gold was not in a mood to follow the negative correlation, ending the month at the level of $2.503. Treasury yields are correcting in line with investors expectation, closing the week on a higher grounds of 3.9%. The crypto market was left aside during the week, with BTC dropping below the 60K.
The Personal Consumption Expenditures Price Index is one of the favorite Fed's inflation gauges, which is why the indicator is closely watched by market participants. Posted data are showing further drop of index in July to the level of 2.5%, y/y which was lower from forecasted 2.6%. The same was with core PCE data, where the indicator reached 2.6%, while the market was expecting to see a figure of 2.7% y/y. For the same period, personal spending was increased by 0.5% for the month, while personal income was higher by 0.3% on a monthly basis. Increased spending was something that caught the eye of both investors and analysts, who are now correcting their GDP growth expectations for the US for this year, but also expecting for corporate earnings to continue their uptrend also during the third quarter.
Last week, the news covered the topic of a potential further rate hike by the Bank of Japan. Although the majority of analysts are of the opinion that BoJ will not hike interest rates in October, there is some consensus that the year 2025 might certainly bring another increase of interest rates as inflation is picking up in Japan. This question represents a relevant topic considering that there is still a significant outstanding amount of carry trades, which ended up in the US equity and crypto markets.
Since recently there has been a huge discussion among market participants over the sale of Apple stocks held by Berkshire Hathaway, while the recent filings are showing that Warren Buffet is also selling shares of Bank of America. BoFA was the third largest stock in Berkshire's portfolio, but was gradually decreased. There is no further explanation from the company on such a move. Analysts are noting that Berkshire continues to stock cash, which currently is at a record high of $227 billion.
Since last week, Elon Musk's platform X has been officially suspended in Brazil. The Brazilian Court brought up such a decision after X failed to appoint the official court representative. The court case is investigating the involvement of the platform in spreading misinformation during the government of the former Brazilian President Bolsonaro.
As Cointelegraph is reporting, the selling pressure on BTC might continue through another settlement tranche of failed crypto exchanger Mt. Gox, which is due in September. As noted, Mt. Gox will distribute another 46.000 BTCs with current market value of 2.7B.
Crypto market cap
The optimism on the crypto markets was put on hold during the previous week. Markets were more focused on inflation data, through posted PCE, a Fed's favorite gauge. On the other hand were analysts and investors who perceived increased consumer spending in the US as a positive sign that Q3 corporate earnings might follow the path of previous quarters. Another information should not be overlooked, which is the expectation that another tranche of distribution of BTCs by failed crypto exchanger Mt. Gox might put additional pressure on BTC in September. This combination led to the week in red for the crypto market. Total crypto market capitalization decreased by 9% on a weekly basis, erasing 195B from the market value. Almost all coins finished the week in red. Interestingly, daily trading volumes decreased compared to the week before, from 160B to 103B on a daily basis. Total crypto market capitalization increase from the end of the previous year currently stands at $ 394B, which represents a 24% surge from the beginning of this year.
Almost all coins were traded lower during the previous week. In nominal terms, BTC lost the most from all other coins, losing 105.5B in value or 8.3%. ETH took the second place with a drop in value of 34.3B or 10.2%. BNB was another coin with a significant drop in market cap of 8.2B or 9.5%. Market favorite Solana was among significant weekly losers of 12B, which represents 16% for this coin. Drop of more than $ 1B includes coins like Polygon, which was down by 27.3%, Polkadot dropped by 16.4%, ADA was traded lower by 13.6%, DOGE dropped by 11.2%. Among higher weekly losers in relative terms were ZCash with a drop of 25.3%, Maker was down by almost 20%, OMG Network dropped by 21.6%. The majority of other coins lost somewhere between 10% and 20%.
In line with a drop in value, there have been movements when coins in circulation are in question. Filecoin added 0.3% of new coins to the market. Polkadot and Polygon increased the number of circulating coins by 0.2% w/w, while this week EOS added 0.4% more coins. Tether increased the number of circulating coins by 0.3% and also increased its market cap by this percentage.
Crypto futures market
In line with the spot market, the crypto futures were also traded lower. BTC futures ended the week lower by around 7.9% for all maturities. Futures maturing in December this year ended the week at the level of $60.890, while those maturing in December 2025 closed the week at $66.905. The futures dropped below 70K for one more time during the month.
Similar situation is also with ETH futures. Short term ones were traded lower by more than 9%, while the long term ones dropped by 8.9%. Futures maturing in December this year ended the week at the level of $2.577, and those maturing a year later were last traded at $2.773, for one more time below the 3K level.
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