Interest Rates Cut in September? – Market Info

The cryptocurrency market has undergone a phase of minor correction over the past two weeks. The total market capitalization of cryptocurrencies fell by 4.5% and is currently hovering around $3.33 trillion. Bitcoin’s market share continued to decline, currently standing at 58%—a drop of approximately 1.3 percentage points over the two weeks.

With the decline in Bitcoin’s price, investor sentiment in the market has also shifted. The Fear & Greed Index has moved from the greed zone to the neutral zone and is currently at 51 points out of 100. Conversely, the Altcoin Season Index rose from 51 points to 55 points over the two weeks.

Interest Rates Cut in September?

The head of the U.S. central bank, Jerome Powell, has significantly fueled expectations that interest rates will be cut in September. This move would be a response to the slowing economy and a weaker labor market. Powell spoke at the annual central bankers’ meeting in Jackson Hole, describing current risks as a “challenging situation” – inflation may accelerate in the short term, while slower job growth remains a concern.

Markets reacted immediately to his remarks, rising in response. The S&P 500 increased by about 1.5%, as investors view a potential easing of monetary policy as supportive for equities. The U.S. economy has been showing signs of weakening for some time, and rates in the 4.25–4.5% range are, according to Powell, “in restrictive territory,” meaning they are high enough to slow activity. This, he said, leaves room for adjustment.

One factor complicating the situation is the tariffs imposed by President Trump. Powell acknowledged that their impact on prices is “clearly visible,” but added that it is more of a one-time price increase that should not lead to persistently higher inflation. This reflects his view that inflationary pressures could subside over time.

At the same time, Powell tried to temper expectations that a rate cut is already certain. He emphasized that “monetary policy is not on a preset course” and that decisions will be made exclusively based on data and risk assessments. Analysts, however, admit that the likelihood of a September cut is very high. Diane Swonk of KPMG noted that Powell “opened the door slightly wider for a September cut,” but the Fed remains cautious about the risks of rising prices.

Political pressure from Donald Trump, who has repeatedly attacked Powell with insults and demanded his removal, was not directly addressed in the speech. The only message stressed the Fed’s independence: according to Powell, the Fed will never deviate from data-driven decision-making.

Investors and economists view the speech positively, but caution that August data could still shake things up. Higher job creation or unfavorable inflation figures could delay a decision. Nevertheless, the market is currently pricing in almost with certainty that the Fed will implement its first rate cut this fall. Source

The U.S. Plans to Publish Economic Data on the Blockchain

The United States is entering a new era of digital transparency. Commerce Secretary Howard Lutnick announced that his department will begin making economic statistics — starting with data on Gross Domestic Product (GDP) — publicly accessible via blockchain. This move is part of a broader strategy to expand data distribution among federal agencies through decentralized technologies.

Lutnick presented his plans at a Cabinet meeting at the White House, stating: “The Department of Commerce will start issuing statistics on the blockchain because you have a ‘crypto president’… we’ll put our GDP on the blockchain so people can use the data and access it.” The project will launch with GDP data and later expand to other departments once technical and procedural details are finalized.

This initiative is not unprecedented. Several countries have already integrated blockchain into public services — Estonia for patient data protection, European countries for electronic IDs and the pan-European decentralized EBSI architecture, Singapore and Australia for paper documentation of receivables, and California for 42 million vehicle ownership records. These examples demonstrate blockchain’s potential as a powerful tool for verifiable and immutable data records.

The main goal is to increase trust, transparency, and security of government economic data, which can be questioned when published through traditional methods. Blockchain provides auditability and resistance to tampering, although it does not guarantee the accuracy of the initial data input. Source

Kanye West Launched His Cryptocurrency

Controversial rapper Kanye West has shocked the crypto world by launching his own memecoin, YZY (Yeezy Money), built on the Solana blockchain. Less than an hour after its debut, the token’s market capitalization skyrocketed to a miraculous $3 billion — largely driven by massive investor interest.

However, the euphoria was short-lived. Following the price surge, YZY experienced a steep crash. The token lost more than 80% of its value, resulting in significant losses for many investors.

On-chain data show that the majority of tokens were controlled by so-called “insiders” — addresses closely linked to the token’s creator. Approximately 70% of the tokens were held by Yeezy Investments LLC. Only 20% of the tokens were made available to the public, and 10% were placed on exchanges to provide liquidity at launch. Additionally, a number of fake YZY tokens appeared, designed solely to scam other investors.

The YZY story resembles a typical pump-and-dump memecoin scenario: sudden announcement, massive price surge, insider activity, and finally, panic selling by small investors. This model has been seen with other celebrity-backed coins, which often ended up nearly worthless, with no real-world utility.

In the crypto world, caution is essential. West’s token serves as another warning that showbiz hype and speculation can generate quick profits for a few, while the vast majority of retail investors face heavy losses. At Fumbi, we continually highlight the high risks associated with new and unknown cryptocurrencies. It is far more important to focus on stable, long-term growth than chasing short-term high returns. Stories like this usually end in substantial losses for most investors. Source

The United States Repurchases Bonds

The U.S. Department of the Treasury carried out one of the largest bond buyback operations in history, repurchasing $4 billion in bonds just days ago. The goal was to improve liquidity in financial markets ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole economic symposium.

Investors submitted bonds worth $29 billion for repurchase — nearly seven times the amount actually bought — highlighting a strong demand for liquidity. This imbalance points to structural issues in the bond market’s financing system, which the buyback only partially alleviated. While the operation aimed to enhance liquidity and test infrastructure, the results suggest that funding problems may be deeper than they appear at first glance.

Yields on bonds, such as the 10-year U.S. Treasury, rose to 4.308%, indicating weaker demand for bonds and showing that the buyback had a limited impact on easing pressure on the yield curve.

This development in the U.S. bond market has an indirect but significant effect on cryptocurrencies. Higher government bond yields and concerns about liquidity in traditional markets often prompt investors to move capital into alternative assets, including Bitcoin and other cryptocurrencies. On the other hand, uncertainty surrounding monetary policy and potential aggressive Fed interventions can increase volatility across financial markets, which may translate into sharp price swings in cryptocurrencies. For investors, this means the crypto market can react not only to its own fundamentals but also to changes in expectations regarding interest rates and liquidity in traditional markets. Source

Has Capital Rotation into Ethereum Begun?

In recent weeks, the crypto market has seen a significant acceleration of capital flow from Bitcoin to Ethereum, indicating that investors are seeking alternative opportunities and portfolio diversification. Daily inflows into Ethereum have reached around $900 million, approaching Bitcoin’s inflows, and this trend continues to accelerate.

Interestingly, it’s not just individual investors driving this trend — institutions that traditionally hold large amounts of assets have also begun significant Ethereum accumulation. One of the largest moves came from BitMine, which amassed approximately 1.7 million ETH in under two months, representing about 1.4% of Ethereum’s total supply. This suggests that major players view Ethereum as an investment option capable of competing with Bitcoin.

In addition to institutional accumulation, capital has been moving into Ethereum via U.S. spot ETFs, which have recorded inflows of $2.8 billion so far in August. Ethereum currently holds a market dominance of roughly 14.5%, more than double April’s 7%. In contrast, Bitcoin’s dominance has dropped from 66% in July to 58%, clearly reflecting a shift of capital from one dominant asset to another.

Ethereum’s price recently reached a new all-time high, just under $5,000. Over the past seven days, Ethereum has gained over 9%, while Bitcoin fell by 2.5% during the same period.

The capital shift to Ethereum and institutional accumulation signal that the market may be entering another growth phase for altcoins. This trend increases Ethereum’s liquidity, visibility, and attractiveness, and investors should monitor these movements closely, as they can significantly impact investment decisions and portfolios. Ethereum is increasingly positioning itself as a strong alternative to Bitcoin, with its growth reflecting the confidence of major players in the cryptocurrency’s long-term sustainable potential. Source

TAKE ADVANTAGE OF CRYPTO’S POTENTIAL

Strategy Continues to Accumulate BTC

Strategy, formerly known as MicroStrategy, continues its aggressive Bitcoin accumulation. Between August 18 and 24, 2025, the company purchased 3,081 BTC for approximately $357 million, bringing its total holdings to 632,457 BTC at an average purchase price of $73,527 per BTC. At a Bitcoin price of $111,647, the value of its Bitcoin portfolio reaches around $70.6 billion.

Despite these purchases, Strategy’s stock fell 4.3% to $342.86, suggesting that the market may be concerned about Bitcoin’s high volatility and the potential risks associated with holding it. Analysts warn of the possibility of further losses, with some recommending selling the shares with a target price of $175, emphasizing Bitcoin’s cyclical nature and the company’s high exposure to the asset.

Despite these challenges, Strategy continues to pursue its “Bitcoin treasury” strategy, which has become a central component of its business. The company has financed its Bitcoin acquisitions through share issuances and convertible bonds, making it the largest corporate holder of Bitcoin in the world. However, this approach comes with challenges, including high debt levels and dependence on cryptocurrency volatility.

Many investors believe in the long-term potential of this strategy, particularly if Bitcoin’s price continues to rise. The company’s exposure to Bitcoin can generate substantial gains but also carries increased risk of sharp price swings.

For investors, it is therefore important to carefully consider the risks associated with high Bitcoin exposure and to monitor market developments and regulations that may impact the value and stability of the world’s most well-known cryptocurrency. Strategy’s approach demonstrates the company’s confidence in Bitcoin’s long-term value while highlighting the need for caution when investing in cryptocurrencies. Source

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TAKE ADVANTAGE OF CRYPTO’S POTENTIAL

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