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Bitget Research: The Fed Reduces Rate Cut Expectations for the Year, IO Coin Price Reaches New High Against the Trend

Jarseed & Aaron
2024/06/13
Bitget Research: The Fed Reduces Rate Cut Expectations for the Year, IO Coin Price Reaches New High Against the Trend
In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Yesterday, two major reports were released. The Federal Reserve's FOMC meeting published a dot plot that indicated a reduced expectation for interest rate cuts within the year, which led to significant fluctuations in the cryptocurrency market. The highlights are as follows:
  • Sectors with strong wealth generation effect: New blockchain sector and AI sector.
  • Top searched tokens and topics: IO.NET, Hifi Finance, Daddy, and Aethir.
  • Potential airdrop opportunities: Symbiotic and Mezo.
Data collection time: June 13, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, the U.S. released its latest CPI data at 3.3%, which was below the anticipated 3.4%, causing the market to rebound immediately. Subsequently, at 2:00 AM (UTC+8), the Federal Reserve's FOMC meeting released the newest dot plot, indicating that most officials now expect only one rate cut within the year, by 25 basis points. The market then erased all gains posted following the CPI announcement.
Regarding Bitcoin ETFs, data from yesterday revealed a cumulative net purchase of $100 million, reversing the trend of net outflows seen over the previous two days. From a trading perspective, although the Federal Reserve has reduced the expected number of rate cuts within the year, the market generally still anticipates that there could be two cuts. Following this data release, the market may enter a period of calm. Investors are advised to wait for more definitive signals before making further trading decisions.

2. Wealth Creation Sectors

2.1 Sector Movements – New Blockchains (TON)

Primary reason: Recently, the number of active users on the TON chain surpassed Ethereum, driven by the seamless integration of Telegram's vast user base with the TON ecosystem. This has led to frequent wealth generation effects in the TON chain and a continuous rise in demand for the TON token.
Gainers: TON is up 8.5% in the last 24 hours.
Factors affecting future market conditions:
  • Impressive data across the board: Since February, the activity on the TON network has been on an upward trend, with daily active addresses now exceeding Ethereum. The ecosystem's TVL has surpassed $460 million, setting a new historical high
  • Continuous ecosystem development: Recently, the TON ecosystem projects have gained widespread attention from on-chain users. With the wealth creation effect of NOT, users have become more interested in gaming projects on the TON chain, such as Hamster Kombat and Catizen.

2.2 Sector Movements – AI Sector (IO and ATH)

Primary reason: Recently launched AI infrastructure projects like IO and ATH have garnered widespread attention. These projects, serving as platforms, can generate stable cash flows. Additionally, the AI narrative, being at the core of global technology discourse, continually enhances the valuation of AI projects in the crypto industry.
Gainers: IO has risen by 45.8% and ATH by 50.6% in the last 24 hours.
Factors affecting future market conditions:
  • AI narrative: Projects like IO and ATH are AI computational power supply platforms, classified as infrastructure projects. If these projects can establish partnerships with mainstream technology industries, such as with Apple, Microsoft, or Nvidia, the valuation of their tokens could naturally increase.
  • Core data on ecosystem development: For platform-type projects, cash flow is relatively transparent. If the demand for the platforms continue to develop healthily and produce stable cash flows, the valuation of their tokens will enter a positive cycle.

3. Top Searches

3.1 Popular DApps

IO.NET
The project is a decentralized computing network that supports the development, execution, and scaling of ML applications on the Solana blockchain. It combines one million GPUs to form the world's largest GPU cluster and aggregates underutilized resources. Despite its launch in the secondary market during a relatively subdued market condition, the project is currently undervalued. Its price has entered an upward trajectory with an increase of over 50% in the last 24 hours, ranking in the top ten in trading volume. The token is now listed on Bitget, warranting continued attention.

3.2 X (former Twitter)

Hifi Finance (HIFI) – An RWA sector project, Hifi Finance has recently produced a series of promotional and educational videos to help the community better understand RWA and the project itself. The project maintains a good operational level. The token's recent performance has been average, following the broader market's downward adjustment. Historically, the token has experienced significant volatility in the secondary market and is popular among major funds.

3.3 Google Search (Global and Regional)

Global focus:
Daddy: The core hype is driven by the feud between Andrew Tate and Ansem, both of whom have issued Daddy tokens. Andrew Tate is a famous American internet personality and former professional boxer; Ansem is an early advocate of WIF with significant influence in the crypto industry and is also an amateur boxer. Currently, Tate's memecoin significantly outperforms Ansem's, attracting higher market attention.
Aethir: The project focuses on decentralized, real-time content rendering technology and operates a decentralized cloud service infrastructure that caters to games and AI products. Aethir is a leading contender in its sector. The project's token was launched concurrently with the sector leader IO.net's token, and both tokens have exhibited strong performance trends. Consequently, market trading activity and attention towards these tokens have been progressively increasing.
Regional focus:
(1) In Asia, the terms "Crypto Crash" and "Why Crypto is Down" are prominently trending due to simultaneous releases of FOMC and CPI data yesterday, leading to a heightened sense of risk aversion, and market pressure prior to the data release.
(2) In Europe and the USA, there is a focus on fundamentally strong projects, primarily in AI, DeFi, and ZK. Hot search topics include IO.net, ZK, AEVO, and UNI. Additionally, there is significant interest in macroeconomic conditions, with CPI and FOMC appearing on several European countries' hot searches.
(3) The CIS region displays a broad range of interests, including projects like IO, Blast Crypto, ADA, and Crypto Whales.

4. Potential Airdrop Opportunities

Symbiotic
Symbiotic is a general restaking project that enables decentralized networks to foster powerful, fully sovereign ecosystems. It offers decentralized applications a method known as AVS (Active Validation Service), to collectively ensure mutual security.
Symbiotic recently raised $5.8 million in a seed round funding with investments from Paradigm and Cyber Fund.
How to participate: Visit the project's official website, link your wallet, and deposit ETH and ETH LSD assets.
Mezo
Mezo is a BTC Layer 2 project focusing on the BTC ecosystem. It assists BTC holders with on-chain transfers and financial management, driving the development of the BTC DeFi system. Mezo recently announced the completion of a $21 million funding round with participation from industry-leading institutions such as Pantera Capital, Hack VC, and Multicoin Capital.
The official announcement of their BTC asset staking plan and the introduction of a referral system have set strong expectations for an upcoming airdrop. The project is currently in the early stages of its operation.
How to participate: 1. Visit the project's official website and find an invite code on Discord; 2. Enter the invite code and connect a Unisat wallet; 3. Deposit BTC.
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