5 Things to Know in Crypto Today: Weak US Stats Deliver BTC Support

Key Insights:

• The total crypto market cap found support from weak US economic indicators reflecting greater fear of the Fed than a recession.
• With investor focus on the Jackson Hole Symposium and Fed Chair Powell, the crypto market is unlikely to break out from current ranges.
• Any crypto market optimism could freeze over on Friday, with Fed Chair Powell on the docket to deliver a keynote speech.

US Macro and Fed Monetary Policy Remains the Key Market Focus

On Monday, panic selling led the total crypto market cap to a day low of $969.2 billion before a post-US closing bell revival. A lack of US economic indicators and FOMC member chatter allowed dip buyers to jump in ahead of a busy week for the global financial markets.

Today, US private sector PMIs set the tone, with the market focus on the Services PMI. A sharper contraction in the services sector delivered crypto support, with the numbers suggesting the need for a possible pause on rate hikes.

Over the week, core durable goods orders, jobless claims, Q2 GDP, personal spending, and inflation figures are also on the docket.

However, uncertainty will shroud the numbers. Investors will need to consider what gives the Fed more wriggle room and what could shallow the planned aggressive interest rate path beyond normalization.

The two market forces remain the economic outlook and the Fed interest rate path trajectory. A less hawkish stance on interest rates but an optimistic view of the US economy would be the ideal crypto combination. However, with US inflation running hot, the two are unlikely to materialize in unison.

Beyond the US, China, the Eurozone, and the UK are other economies faltering.

Early in the US session, bitcoin (BTC) was up 0.21%, with Ethereum (ETH) rising by 0.53%. XRP led the way down, however, falling by 1.16%.

XRP Falters as Investors Await Key Court Ruling in the SEC v Ripple Case

Investor uncertainty towards the SEC v Ripple case remains an XRP headwind. Court rulings on the matter of the Hinman speech-related documents have been on the slower side. The SEC filed its most recent objection to the July court ruling, denying the SEC motion to shield the Hinman docs under the attorney-client privilege in late July.

Four weeks have passed since the SEC objection. Other than an SEC reply brief, there have been no other updates on the matter of the Hinman speech-related documents.

For investors, one concern will be that the Court has entertained more than six motions to contest an original ruling in favor of Ripple. These preceded the July ruling that resulted in the SEC objection.

Crypto Winter Thaws Early in Singapore

Today, Bloomberg reported surging bitcoin (BTC) trading volumes at DBS crypto exchange DBS Digital.

While other platforms lay off staff and declare bankruptcy, DBS appears to have found the appropriate customer base. Not only are volumes up but also BTC purchases, suggesting whale presence in the Republic.

DBS launched DBS Digital Exchange in December 2020, which coincided with the SEC lawsuit against Ripple Labs.

Nike Brings the NFT Market Back to Life

NIKE reportedly became the highest NFT earnings brand. While NFT trading volumes have fallen off a cliff edge, NIKE had NFT revenue of $185.32 million from 67,490 transactions. According to Dune Analytics, Dolce & Gabbana came in second, with $25.65 million in total NFT revenue, followed by Tiffany ($12.62m).

While Tiffany ranked third, the $12.62 million in revenue came from just 74 transactions.

Web3 and NFT trailblazer Gucci had total NFT revenue of $11.56 million.

PayPal (PYPL) Partners with Coinbase (COIN) to Assist with Banking Compliance

Today, Coinbase announced the addition of PayPal (PYPL) to the Travel Rule Universal Solution Technology (TRUST) network.

According to the announcement,

“TRUST is a global, industry-driven solution designed to increase compliance with a requirement known as the Travel Rule while prioritizing the security and privacy of customers.

Other TRUST members include Robinhood, Binance.US, and Gemini.