Risk Rally Accelerates as Fed Hits the Gas

Risk Rally Accelerates as Fed Hits the Gas

The strong macroeconomic tailwinds seen last week continued: U.S. Treasury yields fell further and dollar weakness provided new lift for risk assets. Dow Jones, S&P 500, and Nasdaq broke new records, and crypto markets finally reacted – Bitcoin and Ethereum began rising after a quieter period. Altcoins in particular have consolidated after a strong July–August, and now it's time for larger tokens to shine.

Last week confirmed the "Goldilocks" macro scenario: growth is slowing in a controlled manner without collapse and inflation remains sticky without accelerating. This enables central banks to pursue accommodative monetary policy.

Fed Behind the Curve?

In the U.S., fresh PPI inflation (2.6%) surprised positively, lowering market inflation fears. Unemployment claims rose to their highest since October 2021, and previous employment statistics were revised significantly downward. This has markets pricing in three rate cuts by year-end – even a 50 basis point cut on Wednesday isn't ruled out.

All signs point to the Federal Reserve now seriously beginning an easing cycle. In Europe, the ECB held rates steady, but China's continued deflation and Japan's political uncertainty suggest more global stimulus is coming.

U.S. Treasury market volatility (MOVE index) has fallen to its lowest levels since early 2022. This eases collateral requirements and increases risk appetite – an important positive signal for crypto markets.

Bitcoin and Ether Back in the Spotlight

Bitcoin rose above $116,000 and Ethereum reached $4,650, their highest levels in three weeks, in anticipation of the central bank's first rate cut in a year. A reminder for investors: as monetary policy eases, the largest tokens often lead the way.

Solana Breaks $240 with Institutional Investors Onboard

Solana broke through $240, its highest since January. Behind the move: new institutional investor flows and a strong market position in the Layer 1 space. Galaxy, Jump, and other major names continue to support the chain.

Hyperliquid ETF & Avalanche's Billion-Dollar Plans

VanEck is planning an ETF product for the Hyperliquid token in both the U.S. and Europe. Meanwhile, Avalanche Foundation is negotiating with two U.S. investment firms to raise a billion dollars for AVAX token purchases. Participants include Hivemind, Dragonfly Capital, and Anthony Scaramucci.

Tether Launches USAT Stablecoin for the U.S.

Tether released the new USAT stablecoin, designed for U.S. users and fully within the regulatory framework. The product responds to demand for safer stablecoins brought by the GENIUS Act.

Vietnam Launches Crypto Regulatory Pilot

Vietnam launched a five-year pilot program allowing crypto transactions only in Vietnamese dong and only through local companies. This may serve as an example of how emerging markets approach crypto regulation pragmatically.

Nasdaq Seeks Permission for Stock Tokenization

Nasdaq filed an application proposing that stocks could be settled on-chain as tokenized assets. This could enable 24/7 trading and seamlessly connect traditional markets with crypto technology.

Mining Centers Becoming AI Infrastructure

Bitcoin miners like Core Scientific are shifting capacity to AI computing, particularly Nvidia GPU-based data centers. Returns per kilowatt can be up to 25x compared to BTC mining.

Solana Treasury Company: Forward Industries Invests $1.65 Billion

Forward Industries announced $1.65 billion in funding to build a Solana-based crypto treasury strategy. Participants include Galaxy Digital, Jump Crypto, Multicoin Capital, and Bitwise. Multicoin's Kyle Samani joined the company's board.

Dark Horse IPO: Gemini Raised $425 Million

Gemini listed on Nasdaq at a $3.3 billion valuation, with shares priced at $28. The IPO was oversubscribed, with participation from Goldman Sachs. This could open the door for other crypto companies to go public.

Binance and Franklin Templeton Join Forces

Binance and Franklin Templeton, which manages $1.6 trillion in assets, are joining forces to combine tokenization and traditional trading infrastructure. This could accelerate traditional finance's transition to on-chain.

SEC's "Project Crypto" Brings Regulatory Clarity

SEC Chair Paul Atkins unveiled Project Crypto, which brings clearer rules for tokens, staking, and on-chain markets. A new term emerged: "agentic finance" – AI-powered decision-making in financial markets.

Fashion Meets Crypto: Mogu Buys BTC, ETH, and SOL

Fashion company Mogu announced a $20 million investment in Bitcoin, Ethereum, and Solana. The company's stock rose 76%. The strategy combines crypto investments with AI, in the spirit of MicroStrategy, but with a fashion angle.