September 19, 2024

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Solana Saga's Crypto Phone Successor Unveiled as 'Seeker,' Surpasses 140,000 Presales

Solana Mobile has unveiled its new crypto smartphone, "Seeker," with over 140,000 presales across 57 countries. The device, set to ship in mid-2025, is a follow-up to the Solana Saga and has gained popularity partly due to two cat-themed memecoin airdrops that briefly covered the phone's cost. Priced at $450 during the presale, Seeker includes features like the Seed Vault Wallet and a new version of the Solana dApp Store, aiming to enhance mobile crypto experiences. The Seeker also offers a unique Genesis Token, providing exclusive rewards and access within the Solana ecosystem.

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US Spot Bitcoin ETFs Record $52.8 Million in Net Outflows, Ending Four-Day Inflow Streak

On Wednesday, U.S. spot Bitcoin ETFs saw net outflows of $52.83 million, breaking a four-day inflow streak that had brought in over $500 million. The largest outflow came from Ark & 21Shares’ ARKB with $43.41 million, while Grayscale’s Bitcoin Mini Trust was the only fund to post net inflows at $2.66 million. Spot Ether ETFs also reported $9.7 million in net outflows, marking their third consecutive day of losses. Despite this, Bitcoin rose 3% to $62,138 following the Federal Reserve’s interest rate cut, with Ether and Solana also seeing gains amid improved market sentiment.

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Donald Trump Makes First Bitcoin Purchase on a Burger at New York City's PubKey Bar

Before a campaign rally at Nassau Coliseum, Donald Trump visited PubKey Bar, a Bitcoin-themed bar in New York City, where he made his first-ever Bitcoin purchase—buying a cheeseburger. PubKey Bar, known for hosting crypto meetups, celebrated the event as a historic Bitcoin transaction. Trump handed out burgers to patrons and called it a "crypto burger." His stance on cryptocurrency has shifted this year, with his campaign accepting crypto donations and his recent involvement in promoting World Liberty Financial, a DeFi project.

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Trading Desk Insights

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‍Following the Fed’s expected 50bps rate cut, Bitcoin initially rallied 2% but quickly reversed, dipping 1% shortly afterward. The cumulative volume delta—representing net buying and selling—saw a positive inflow of $50 million right after the announcement. However, the bullish sentiment didn’t immediately translate into upward price movement. It wasn’t until around 7:30 PM ET that open interest began to climb, which triggered a corresponding increase in volume. This late surge drove prices up 12%, pushing Bitcoin to $63,000, its highest point since late August.

SUI continues to outperform the broader market, breaking out of its trend channel on August 8th. Since then, it has surged 85%, and there’s potential for an additional 25% upside. Its gaming division is gaining significant momentum, with plans to launch a handheld gaming device next year to compete directly with Nintendo and Steam. Pre-orders have already surpassed 2,000. Moreover, the imminent arrival of USDC to the SUI network is adding fuel to its growth narrative.

Meanwhile, BASE has been capturing increasing market attention. Just halfway through September, BASE has already matched its record USDC volume from August. For the first time, daily transfer volume for USDC on BASE exceeded $10 billion, marking a major milestone.

Now, turning back to the Fed:

On Wednesday, the Federal Reserve cut its benchmark rate to a range of 4.75%–5%, down from 5.25%–5.5%. This marked the Fed’s first rate reduction in four years. The decision, while expected, drew some criticism for its size, with many questioning whether it was enough. The Fed’s projections, outlined in the “dot plot,” suggest another 50bps worth of cuts through 2024. They also anticipate a slight uptick in the unemployment rate by year’s end, now forecasted at 4.4%, compared to June’s estimate of 4%, with elevated levels extending into 2025 before improving. Futures markets are pricing in a 75bps cut by year-end, with a 65% probability of a 25bps cut in November and a 50% likelihood of a 50bps reduction in December.

While rate cuts are generally considered bullish for risk assets, the timing of these moves could raise concerns. If economic indicators deteriorate while rates are being cut, it may signal deeper economic trouble. Traders should closely monitor key metrics like employment data and leading economic indicators. Historically, aggressive rate cuts, such as those in 2001 and 2007, preceded significant market downturns—with the S&P 500 falling over 40% in both instances within 350 days as unemployment rose sharply. While this doesn’t guarantee a repeat scenario, being aware of these patterns is crucial, especially as we navigate this rate-cutting cycle. In contrast to recent years, where weak economic data was seen as a positive catalyst for rate cuts, deteriorating data in this environment may have the opposite effect, potentially dragging the market lower.

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Crypto Charts

Disclaimer

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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

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