- September is a crucial month with key events like potential Spot Bitcoin ETF decisions, US Consumer Price Index (CPI) report, and the Federal Open Market Committee (FOMC) meeting.
- Apart from macroeconomic indicators, significant crypto-specific events such as dYdX’s new update and major protocols launching on Coinbase’s Base platform could impact the market.
September’s Calendar: A High-Stakes Chessboard for Crypto Investors
September is shaping up to be a potentially transformative period for the crypto market, laden with pivotal events that could spell either fortune or folly. Rather than focusing on the traditionally quiet first week of the month, we must widen our lens to encompass the entire September landscape.
The Great ETF Conundrum
The Spot Bitcoin ETF continues to be the centerpiece of attention. Recent legal victories for Grayscale against the SEC have stirred the waters. According to financial powerhouse JPMorgan, the SEC is likely cornered into approving Spot Bitcoin ETFs post-Grayscale’s court win. However, the market’s lukewarm reaction to this victory and the looming October 14 deadline for institutional giants like BlackRock and Fidelity to weigh in make the timing of approval highly unpredictable.
Macro Watch: CPI and the FOMC Meeting
Economic eyes will be glued to the US Consumer Price Index (CPI) report set for release on September 13th. After a surprising uptick in July, market participants are scrutinizing this indicator for signs of an inflationary resurgence. The Federal Reserve has maintained an optimistic outlook, but any negative shocks in the CPI could prompt discussions on a potential rate hike in 2023.
Another linchpin is the Federal Open Market Committee (FOMC) meeting on September 20th. Given the current discord between a declining consumer confidence and a steady rise in the Fed’s preferred inflation metric, Core PCE, the market is expecting a hold on rate hikes—a theory supported by a 93% statistical probability.
On the Crypto Frontline: dYdX and Coinbase’s Base
Within the crypto realm, the decentralized exchange dYdX is slated for a crucial update, which includes an in-memory orderbook to be supervised by chain validators. This is seen as a significant step toward decentralization and could be a potential game-changer for DYDX token holders, given dYdX’s substantial market cap of $362 million.
Furthermore, Coinbase’s Base platform, with a total value locked (TVL) of $400 million, could act as a magnet for additional liquidity. With the pending launch of several protocols, including industry titans like Uniswap and Aave, Base is positioned to make a noticeable impact this month.
These impending events form a complex but defining tapestry for what lies ahead in September. While the immediate week may lack action, the broader month could catalyze transformative shifts in both crypto and traditional financial markets.