Last Week in Crypto: Bitcoin ETFs See Outflow of Over $700 Million, Arthur Hayes Turns Bearish on Bitcoin, Fed Rate Cut Expectations Remain Uncertain After Nonfarm Payrolls

Last Week in Crypto: Bitcoin ETFs See Outflow of Over $700 Million, Arthur Hayes Turns Bearish on Bitcoin, Fed Rate Cut Expectations Remain Uncertain After Nonfarm PayrollsLast week, the crypto market experienced significant volatility, with investors keenly focused on factors such as Federal Reserve rate cut expectations, the release of nonfarm payrolls data, and net outflows from Bitcoin ETFs. Here's a quick look at the hottest topics and recommended content from the past week in crypto:Bitcoin ETFs Outflow Exceeds $700 Million, Market Panic SpreadsAccording to FarsideInvestors data, US spot Bitcoin ETFs recorded a cumulative net outflow of $7

Last Week in Crypto: Bitcoin ETFs See Outflow of Over $700 Million, Arthur Hayes Turns Bearish on Bitcoin, Fed Rate Cut Expectations Remain Uncertain After Nonfarm Payrolls

Last week, the crypto market experienced significant volatility, with investors keenly focused on factors such as Federal Reserve rate cut expectations, the release of nonfarm payrolls data, and net outflows from Bitcoin ETFs. Here's a quick look at the hottest topics and recommended content from the past week in crypto:

Bitcoin ETFs Outflow Exceeds $700 Million, Market Panic Spreads

According to FarsideInvestors data, US spot Bitcoin ETFs recorded a cumulative net outflow of $7.061 billion last week, while Ethereum spot ETFs saw a cumulative net outflow of $91.1 million. Fidelity FBTC saw a net outflow of $4.049 billion, and Grayscale GBTC recorded an outflow of $1.607 billion. Market analysts believe these net outflows from Bitcoin ETFs reflect investors' cautious stance on the crypto market's future prospects, fueling a sense of market panic.

Arthur Hayes Turns Bearish on Bitcoin, Predicts Sub-$50,000 Price by Weekend

BitMEX co-founder Arthur Hayes pointed out that due to political pressures and the election cycle, the US government finds it difficult to significantly cut spending or raise taxes, leading to the US economy continuing to navigate the dual pressures of inflation and growth. In this scenario, the Fed may not raise rates further, but the market itself might adjust interest rates to address high debt financing costs. The 10-year US Treasury yield could climb back to 5%, triggering a new wave of volatility in financial markets.

Hayes believes Bitcoin prices have become one of the most sensitive indicators of dollar liquidity conditions. If interest rates rise again and market liquidity tightens, Bitcoin and other cryptocurrencies could face a new round of price corrections. He expects Bitcoin to fall below $50,000 by the weekend and has taken short positions.

Nonfarm Payrolls Data Released, Rate Cut Expectations Remain Unclear

The US economy added 142,000 seasonally adjusted nonfarm jobs in August, below the market expectation of 160,000. Fed "whisperer" Nick Timiraos stated that the nonfarm payrolls report should have provided a clear signal regarding the magnitude of the Fed's first rate cut, whether 25 basis points or 50 basis points. However, the current nonfarm payrolls report hasn't addressed this issue effectively, with the market currently pricing a "50/50" chance of a 25 or 50 basis point cut.

Telegram Founder Pavel Durov Speaks Out After Arrest, Pledges Improved Platform Oversight

Following his arrest in France, Telegram founder Pavel Durov took to Telegram to not only condemn the reasons behind his recent arrest but also stated that the company is prepared to exit markets incompatible with its privacy and security principles. Durov further mentioned that Telegram has already taken similar actions in several countries, including Russia and Iran. He stated, "If a country has grievances with platforms like Telegram, it should sue the service itself, not its CEO. It is absolutely untrue to say that Telegram is some kind of anarchic utopia. We have direct channels of communication with NGOs to handle urgent regulatory requests more quickly. Furthermore, Telegram has removed the 'People Nearby' feature, which was used by less than 0.1% of Telegram users and was prone to bots and scammers. Telegram will launch 'Businesses Nearby' to replace it."

FractalBitcoin Unveils Mainnet Bootstrap Program, Airdropping 1 Million FB to UniSat and OKX Wallet Users

Bitcoin scaling solution FractalBitcoin announced the launch of its Fractal mainnet Bootstrap program, awarding up to 1 million FB. This community initiative aims to reward users actively utilizing UniSat and OKX wallet services on the Bitcoin mainnet. Simply click the link on the website to check eligibility; no registration or claim is required.

Ethereum Foundation Research Team Hosts Online AMA, Addresses Numerous Questions

After an 8-month hiatus, the Ethereum Foundation research team conducted its 12th AMA on the Reddit forum, addressing a range of inquiries. Topics covered included reasons for ETH price increases, when the Ethereum Foundation's funding will run out, blob (EIP-4844), ZK, and Rollups.

Grass Launches Airdrop Check Page, Initial Airdrop Accounts for 10% of Total Supply

Grass announced the launch of its airdrop check page. The check page only reflects ClosedAlpha and Epochs 1-7 allocations, excluding ongoing BonusEpoch or ToBeAnnounced allocations. The total supply will be 1 billion GRASS tokens, with 10% allocated to the initial airdrop. Detailed allocation is as follows: ClosedAlpha: 1.5%; Epochs 1-7: 7%; BonusEpoch: 0.5%; ToBeAnnounced: 1%.

L2 Daily Transactions and Monthly Active Users Double in Past 6 Months, But Ethereum L1 Revenue Drops 99%

According to Tokenterminal monitoring, Ethereum L2 transaction fees have dropped significantly over the past 6 months, while L2 daily transactions and monthly active users have doubled. However, this comes at the cost of Ethereum L1 revenue dropping by 99%.

Binance Plans to Launch Solana Liquid Staking Token (BNSOL) by End of September

Binance is planning to launch a Solana (SOL) staking product by the end of September. BNSOL will enable users to stake SOL tokens to earn rewards in the form of a portion of fees paid by the network and mint a liquid staking token that can be used while the underlying tokens are locked.

People's Court Newspaper Calls for Swift Release of Comprehensive Judicial Guidelines on Virtual Currency Disposition

The People's Court newspaper published an article titled "Judicial Disposition of Virtual Currencies Must Be Standardized," highlighting the crucial role of standardized judicial disposition of virtual currencies in safeguarding financial stability and promoting healthy market development. According to the SAFEIS Security Research Institute, China saw a total of 428 criminal cases involving virtual currencies in 2023, down by 88.9% from 2022. However, the amount involved surged to 430.719 billion yuan, approximately 12.36 times higher than in 2022. The article emphasizes that the current disposition of virtual currencies faces multiple challenges, including ownership identification, valuation, and legal realization. To address these issues, the article suggests the swift release of comprehensive judicial guidelines for virtual currency disposition, clarifying their legal status, compliance requirements, asset disposition procedures, and legal responsibilities.

Popular Articles Last Week:

• ENA Token Plunges Over 80%, Could Algorithmic Stablecoins Be Entering a Death Spiral? Ethena is an algorithmic stablecoin offering high yields and derivatives infrastructure, attracting investors and institutional interest. Ethena's principle involves holding stETH and opening short positions to achieve risk hedging and compound returns. However, it also carries the risk of fluctuating funding rates. During market slumps, Ethena's earnings might be affected, causing a decline in ENA token prices and total value locked (TVL). The de-pegging risk of algorithmic stablecoins and the risks inherent in the rehypothecation process warrant deeper consideration. The existence of a perfect model remains a fascinating question.

• Trading Volume Exceeds $10 Million, A Glimpse at Etheism, a New Token Protocol in the Ethereum Ecosystem Etheism is a novel token protocol in the Ethereum ecosystem, with each token possessing a unique SVG image, purportedly generated based on transaction history and mathematical algorithms. It blends art with code, offering immutability, but its artistic and collectability value remains unclear. The project is in its early stages, requiring cautious observation.

• Trump Enters the Crypto Market in a Big Way! DeFi Project Unveiled, Founding Team Sparks a Frenzy Members of the Trump family plan to launch "The DeFiant Ones" project, aiming to establish a credit account system and promote decentralized lending. The project leadership team consists of Trump family members and individuals outside the family, including one formerly operating a pickup artist advice platform and another sharing success stories on a popular podcast. While details of the project remain undisclosed, it has attracted significant attention. Trump pledged during his campaign to make America "the crypto capital of the world."

• From Gaming Companions to Web3 Game Revolution: A16Z Leads $30 Million Investment, A Bold Gamble on the Future of Gaming Platform Balance Gaming companions are crucial in massively multiplayer online games, fulfilling players' social, skill improvement, and entertainment needs, thereby enhancing game engagement and retention. Balance offers global gaming companion services and endeavors to build an open and fair gaming ecosystem. Balance has launched a gaming chain based on layer-2 zk-rollup, providing instant transactions, scalability, and zero fees. It utilizes AI technology to lower the barrier to game development. The EPT token can be used to cover operational and maintenance costs for network nodes, participate in governance, and purchase in-game goods and services. Balance also launched a whitelist campaign, enabling users to become builders and share in the rewards.

• Hypernative Secures $16 Million in Funding, How to Build a Web3 Security Guardrail The DeFi ecosystem faces