Cryptocurrency

Uniswap

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<p class="is-style-lead">Cryptocurrency prices and stock indices retreated slightly after the U.S. published encouraging Consumer Price Index data.</p>
<h2 class="wp-block-heading" id="uniswap-icp-aave-rise-bitcoin-retreats">Uniswap, ICP, AAVE rise, Bitcoin retreats</h2>
<p>Bitcoin (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/bitcoin/">BTC</a>) retreated to $56,600, while the total market cap of all cryptocurrencies fell to $2 trillion. The same happened in the stock market, where Dow Jones, Nasdaq 100, and S&amp;P 500 index futures retreated by over 0.50%.</p>
<p>Most cryptocurrencies were in the red after the CPI data. The top gainers were Internet Computer (<a href="https://crypto.news/price/internet-computer/" target="_blank" rel="noopener noreferrer nofollow">ICP</a>), AAVE (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/aave/">AAVE</a>), Uniswap (<a href="https://crypto.news/price/uniswap/" target="_blank" rel="noopener noreferrer nofollow">UNI</a>), and THORChain (<a href="https://crypto.news/price/thorchain/" target="_blank" rel="noopener noreferrer nofollow">RUNE</a>), which rose by over 2%.&nbsp;</p>
<p>According to the Bureau of Labor Statistics, the headline CPI dropped for the fourth consecutive month, reaching 2.5%, its lowest level since 2021. The CPI remained unchanged at 0.2% on a month-on-month basis.</p>
<p>The core CPI, which excludes the volatile food and energy prices, rose from 0.2% to 0.3%, higher than the expected 0.2%. It remained at 3.2% on an annual basis.</p>
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   <p lang="en" dir="ltr">The US CPI report is in line with the consensus forecasts with an important exception — hotter monthly core inflation (0.3% versus 0.2%).<br>Given the extreme degree of "data point dependency" in the marketplace, immediate asset price reactions include higher rates and lower stock…</p>— Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1833849011847020980?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 11, 2024</a>
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<p>These numbers came a few days after the bureau published <a href="https://crypto.news/bitcoin-and-altcoins-rise-as-nfp-data-point-to-a-large-rate-cut/" target="_blank" rel="noopener noreferrer nofollow">mixed jobs data</a><strong>. </strong>The economy created 112,000 jobs in August while the unemployment rate remained above 4.0%.</p>
<h2 class="wp-block-heading" id="fed-is-set-to-cut-rates-next-week">Fed is set to cut rates next week</h2>
<p>Bitcoin, altcoins, and stocks reacted mildly to the U.S. CPI data, as it will likely not have a significant impact on the Federal Reserve when it meets next week. The CME Fed Watch tool <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener noreferrer nofollow">shows that</a> 85% of market participants expect the Fed to deliver a 0.25% rate cut, bringing the official cash rate to between 5.25% and 5.50%.</p>
<p>In theory, risky assets like Bitcoin should perform well when the Fed is cutting interest rates due to the vast sums of money in money market funds. When government bond yields drop, many investors may rotate into these risky assets.</p>
<p>You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/ondo-finance-token-at-risk-if-fed-begins-cutting-rates/"> Ondo Finance token at risk if Fed begins cutting rates </a></p>
<p>However, this rotation will likely take time, as Fed cuts are expected to be gradual, meaning that fixed income will still offer attractive yields for a while.</p>
<p>Bitcoin and altcoins may have also retreated due to the rising odds that Kamala Harris could win the general election after the debate. Polymarket data shows that she has flipped the lead from Donald Trump, who has been ahead for a while. Still, it is too early to predict who will win, as polls indicate a tight race.</p>
<p>Uniswap token rose because of the rising volume in its DEX platform. Data by <a href="https://defillama.com/dexs/chains/ethereum" target="_blank" rel="noopener noreferrer nofollow">DeFi Llama</a> shows that its weekly volume rose by over 33% to over $6 billion. AAVE, on the other hand, rose as whale accumulation continued.</p>
<p>You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/trump-harris-tied-on-polymarket-following-debate/"> Trump, Harris tied on Polymarket following debate </a></p>

AAVE, Uniswap, ICP climb as Bitcoin retreats with cooling US CPI

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