⛅  A timid sun will shine over Bitcoin, Solana and Avalanche in the next 24 hours, signaling slightly bullish market conditions, while Ether, Binance Coin, Ripple’s XRP and Uniswap will profit from a strong sun or bullish market conditions.
🌧️ ATTMO’s one-week forecast is less bullish, predicting drizzle ahead for both Bitcoin and Ether, which suggests slightly bearish market conditions.

The trading signals available at 07:30 CET are the basis for the projections mentioned above. Please check whether ATTMO's signals have changed since then, before making an investment decision.

Cryptocurrencies fall sharply as fear dominates the cryptosphere ahead of inflation data

The cryptocurrency trend was clearly negative over the weekend and ahead of Wednesday’s release of US inflation figures [CPI]. The crypto fear & greed index currently signals “fear” reflecting a cautious market sentiment.

“The market's focus has shifted toward growth prospects and the upcoming [US presidential] election. Therefore, we shouldn't expect a significant rally if the CPI falls below 3.0% this week. However, a higher CPI number could raise concerns about stagflation, suggesting the Fed may hold off on aggressive rate cuts due to persistent inflation,” the crypto analytics firm 10xResearch said in its daily note.

As of today, the market is evenly split, with half expecting a 25-basis point rate cut and the other half anticipating a 50-basis point cut by the Federal Reserve at its next meeting on September 18. Stronger-than-expected inflation data could slow the pace of the anticipated rate cuts.

The price of Bitcoin has been oscillating between $49,100 and $62,600 over the past week, managing to recoup the losses incurred during last week’s mini crash, Trading View’s Bitcoin chart shows. Its price fell 3.9 percent to $58,566 over the past 24 hours.

Analysts divided on Bitcoin’s future price path

“Bitcoin briefly crossed all the way above $62.6K, a +25% ascension in just over 3 days. As usual, average traders have been caught off guard. Look for sudden increased excitement of potential $70K-$75K BTC prices, or $3.0K-$3.5K ETH prices, as respective top signals,” the crypto intelligence firm Santiment noted. The price of Ether dropped 4.1 percent to $2,545 over the past 24 hours.

“While many narratives have driven Bitcoin during the last month [the German government’s Bitcoin sales, Trump assassination attempt, Republican plan of a Bitcoin treasury reserve, Biden dropping out of the election race], there appears to be an overhang of uncertainty that will take (at least) until September to clear out — economic strength, Fed rate cut confirmation, and the US Presidential Election” on Nov 5, 10xResearch said, adding “we suspect the trading range has shifted lower towards the $50,000 to $60,000 range as Bitcoin [exchange traded fund] ETF buying has run dry.”

The 12 spot Bitcoin ETFs trading in the US recorded outflows of $89 million and the nine spot ETH ETFs outflows of $16 million on Friday.

Morgan Stanley’s Bitcoin ETF PR campaign likely to attract intensified regulatory scrutiny

Morgan Stanley is poised to face greater regulatory scrutiny now that the sixth-largest US bank in terms of assets promote spot Bitcoin ETFs, a former head of the Securities and Exchange Commission’s (SEC) Office of Internet Enforcement said.

“By unleashing its legion of 15,000 brokers to pitch Bitcoin, @MorganStanley has just voluntarily subjected themselves to what will likely become the largest SEC and [Financial Industry Regulatory Authority] FINRA examination sweep in history,” John Reed Stark said. “[In my humble opinion] IMHO, identifying violations will be like shooting fish in a barrel.”

Ethena stablecoin now deployed on Solana blockchain

The stablecoin of Ethena Labs, USDe, is now deployed on the Solana blockchain. Solana has been added as a backing asset for this stablecoin.

“SOL as a backing asset for USDe will be proposed to governance for implementation next week and opens up an extra $2-3bn of open interest across major exchanges, improving USDe's scalability even further,” Ethena Labs said.

The price of Solana lost 7.2 percent to $144 over the past 24 hours.

Ripple starts testing of its stablecoin RLUSD

On Friday, Ripple Lab announced the start of beta testing of its stablecoin Ripple USD (RLUSD) on the Ethereum mainnet and the XRP Ledger. There are plans to expand to additional blockchains and decentralized finance (DeFi) protocols in due time.

“This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available, and after receipt of regulatory approval,” Ripple said. The company gave no indication on when the regulatory approval is expected.

RLUSD will maintain a 1:1 value with the US dollar, fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. A third-party accounting firm will audit these reserve assets, with Ripple providing monthly attestations.

Once RLUSD is trading, Ripple will use both RLUSD and XRP, its cryptocurrency, in its cross-border payments solution.

The price of XRP shed 4.2 percent to $0.57 over the past 24 hours.

DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.