Daily News | Elon Musk to Lead US D.O.G.E Department, Is DOGE Reaching $1 No Longer A Dream?
Crypto Daily Digest: ETH ETFs’ net inflow record interrupted for 4 consecutive days, Musk will lead the US D.O.G.E department
According to Farside Investor data, yesterday’s net inflow from US Bitcoin spot ETFs was $39.2 million, including a net inflow of $37 million from Fidelity FBTC and a net outflow of $17.8 million from Grayscale GBTC. BlackRock IBIT data has not been updated yet.
Yesterday, the US Ethereum spot ETF saw an inflow of $4.5 million, breaking the previous record of large net inflows for four consecutive days. Bitwise ETHW inflow was $17 million, Grayscale Mini ETH inflow was $12.7 million, Grayscale ETHE outflow was $33.2 million, and BlackRock ETHA data has not been updated yet.
Elon Musk: The actions of the Department of Government Efficiency (D.O.G.E) will be released online and a “stupid tax spending ranking list” will be launched
Musk stated in a post on X that “all actions of the D.O.G.E department will be published online for maximum transparency. Whenever the public thinks we are cutting important things or not cutting wasteful things, please let us know. We will also have a ranking of the craziest and dumbest expenses you pay taxes on. This will be extremely tragic and extremely interesting.”
Note: The name Department of Government Efficiency (DOGE) is not a coincidence. The DOGE community previously suggested it to Musk and adopted it. Musk said, “This is a perfect name.”
Former Cleveland Fed Chairman showed hawkish statement: The number of interest rate cuts next year will decrease
The Former Cleveland Fed Chairman stated that fiscal policy will influence the Fed’s rate cuts next year and may not be as frequent as assumed or expected in September.
Mester pointed out that the outlook of the Federal Reserve will change with the upcoming Republican government’s fiscal plan, and the market may have correctly predicted four fewer rate cuts than previously expected. “Next year, the speed of interest rate cuts will be influenced by fiscal policy.”
Economists surveyed by Reuters also expect a 25 basis point rate cut at the meeting in December 2024. This will lower the federal funds rate to 3% to 3.25% by the end of 2025, slightly lower than the Federal Reserve’s median “dot plot” forecast.
Analysis: Trump’s leadership is expected to boost the crypto industry, but uncertainty still exists
Deutsche Bank research analyst Marion Laboure stated that cryptocurrencies will benefit from a more favorable regulatory and political context under US President Trump’s leadership, but uncertainty about future policies still exists.
In a report, she stated that the incoming Trump administration may accelerate regulatory transparency, strengthen institutional involvement, improve market infrastructure, and be more widely adopted by the mainstream. However, policy uncertainty remains a key factor driving price increases. Laboure said, “It is important to emphasize that if the expected regulatory reforms in the crypto industry by the Trump administration do not meet market expectations, we may see potential turbulence.”
Market Trends: DOGE led dog-related meme coins to rise collectively, GOAT continues to hit a new historical high
Market Hotspots
Dog meme coins DOGE, NEIROCTO, BONK, FLOKI, WIF, BILLY, and others collectively rose. Musk announced the formation of the Department of Government Efficiency (DOGE), abbreviated as “DOGE”, bringing more exposure to the DOGE coin; After DOGE surged and broke through the $60 billion market cap mark, funds were diverted to the smaller market cap of dog-related coins, driving the collective rise of dog-related coins;
The AI meme coins ACT and GOAT surged. The ACT coin rebounded rapidly, still maintaining around $0.58, which is a strong performance of their financial support; After a brief pullback, GOAT rose to $1 at one point, setting a new historical high, but has temporarily fallen to around $0.85; The current market cap of ACT is $530 million, and the market cap of GOAT is $870 million. Currently, the market cap of these two tokens still has sufficient room for performance;
Well-established coins such as XRP and XLM rose, and this kind of rise is often delayed, a manifestation of overly hot market sentiment. The market may temporarily enter a correction stage.
Mainstream Coins
BTC retreated after hitting $89,949 and is currently consolidating around $88,000. The market sentiment is too hot, and it is currently in a short-term adjustment phase. After the adjustment is completed, BTC’s next target is $100,000;
After breaking through $3,400, ETH fell back and receives support around $3,250. The ETH ETF received nearly $300 million in daily inflows the day before yesterday, and may continue to receive large fund inflows in the future;
Altcoins generally experienced a pullback, and fully circulated meme coins remain the preferred choice for market funds. Meanwhile, the AI sector, especially ACT and GOAT, is also worth focusing on.
Macro news: US stocks collectively closed down, Trump-related transactions declined
The three major indexes of the US stock market collectively closed down, with the S&P 500 index falling 0.29% to 5,983.99 points; The Dow Jones Industrial Average fell 0.86% to 43,910.98 points; The Nasdaq index fell 0.09% to 19,281.40 points. The benchmark 10-year Treasury yield is 4.43%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 4.34%.
The three major indexes of the US stock market collectively closed down. At the same time, the yield of the 2-year US Treasury bond, which is most sensitive to the Federal Reserve’s policy rate, continued to rise and was temporarily reported at 4.34%. The market is concerned that Trump’s promised policy of imposing tariffs on foreign countries during the campaign may lead to a resurgence of domestic inflation in the United States, thereby keeping US interest rates high. The Federal Reserve may also reduce its interest rate cuts or even raise interest rates again.
