Bitget Research: CPI data triggered a pullback in US stocks, driving a broad decline in the crypto market
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Bitget Research: CPI data triggered a pullback in US stocks, driving a broad decline in the crypto market
In the past 24 hours, several new trending cryptocurrencies and topics have emerged in the market, which could very well represent the next wealth-building opportunities.
Navigating Web3 tides with focused insightsAuthor: Bitget Research
Summary
The U.S. unadjusted core CPI for June came in at 3.3% year-on-year, below the market expectation of 3.4%, marking the lowest level since April 2021. Bitcoin, as a correlated risk asset, declined under negative influence from U.S. equities.
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Relatively strong wealth-generating sectors: Solana Meme, ETH ecosystem;
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User's top-searched tokens & topics: Nillion Network, Bitcoin;
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Potential airdrop opportunities: Espresso, Mezo;
Data collection time: July 12, 2024, 4:00 AM (UTC+0)
1. Market Environment
The U.S. unadjusted core CPI for June was recorded at 3.3% year-on-year, lower than the expected 3.4%, returning to the lowest level since April 2021. U.S. tech stocks dropped sharply yesterday, with Nvidia down 5.57%, Tesla falling 8.44%, Meta declining over 4%, and Apple, Microsoft, Google, and Amazon each dropping more than 2%. This was primarily due to the realization of rate cut expectations, leading to falling bond yields, rising bond prices, and institutions exiting overbought equity markets to shift into bonds. As a correlated risk asset, Bitcoin declined under pressure from U.S. equities.
In terms of trading activity, according to Arkham monitoring, the wallet associated with the "German government" transferred out 10,627 BTC in the past 24 hours, then reclaimed 4,169 BTC from CEXs, and currently holds 9,094 BTC (approximately $522.29 million). The remaining selling pressure has diminished in its impact on the market.
2. Wealth-Generating Sectors
1) Sector Movement: Solana Meme (MOTHER, BODEN)
Main reasons:
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DWFLabs announced a new strategic partnership with Iggy Azalea, focusing on supporting innovative projects in the Web3 space.
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U.S. President Biden stated in a press conference that he will not withdraw from the election.
Price movements: MOTHER and BODEN rose 10.8% and 21.32% respectively within 24 hours;
Factors influencing future trends:
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SOL token performance: Within the Solana ecosystem, the price movement of SOL affects the pricing of other ecosystem tokens, as many DEX trading pairs are quoted in SOL. Monitor SOL’s price trend closely; if SOL maintains an upward trajectory, holding Solana ecosystem assets remains viable.
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Open interest changes: SOL open interest increased yesterday, indicating inflow of speculative capital. Use tv.coinglass to track contract data and monitor key indicators—first check the net long position increase, then determine whether there is a net increase in long contracts, rising open interest, and expanding trading volume. If so, it suggests sustained institutional buying, supporting continued holding.
2) Sector to Watch: ETH Ecosystem (ENS, ETHFI)
Main reasons:
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EtherFi has opened its website for checking eligibility for Q2 airdrops. The third quarter snapshot period will run from July 1 to September 14, distributing 25 million ETHFI tokens.
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Bloomberg ETF analyst Eric Balchunas predicts the U.S. SEC may approve spot Ethereum ETFs on July 18.
Factors influencing future trends:
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News regarding spot ETH ETF approvals will directly affect ETH’s price and the performance of major projects in the ETH ecosystem. Additionally, whether the SEC extends its consideration of staking projects like Lido and Rocket Pool as securities to include protocols such as SSV will significantly impact this sector.
3. User Search Trends
1) Popular Dapp
Nillion Network
Nillion, a decentralized public network based on Nil Message Compute (NMC), announced the launch of Phase Two of Catalyst Convergence. This phase includes enabling developers to build and deploy Blind applications on the network; using NIL tokens from its faucet to support projects; direct interaction with the testnet and access to SDK features; leveraging Petnet for secure storage and computation; managing and processing sensitive data via Blind Computing; and deploying the Nada AI package.
2) Twitter
Bitcoin:
Affected by yesterday’s CPI data, BTC showed a decline over the past 24 hours. Today’s Fear & Greed Index stands at 25, shifting from "Fear" to "Extreme Fear."
3) Google Search & Regional Trends
Global overview:
Aerodrome:
Since DEX Aerodrome on Base announced that Coinbase Ventures acquired AERO tokens in the secondary market, it was discovered that the Coinbase Ventures address has purchased at least 4.7 million AERO (worth about $2.7 million). Additionally, Coinbase Ventures’ TradingVaults holds another 1.5 million AERO (worth about $936,000). The latest purchases were completed eight days ago, with all acquired tokens locked within the Aerodrome ecosystem.
Regional search trends:
(1) In Asian countries, Google Trends show no distinct characteristics—BTC remains the focal point. Additionally, Ton ecosystem gaming project Hamster Kombat made the list, with market attention focused on its potential airdrop.
(2) In Western countries, search trends also lack clear patterns. Coinbase and Crypto AI emerged as popular topics, but consensus on specific sectors or projects has not formed. Bitget became a CEX of interest among users in the UK.
4. Potential Airdrop Opportunities
Espresso
Espresso is a shared sequencer marketplace project utilizing ZK-Rollups, primarily addressing consensus and interoperability across various Layer 2 networks. Privacy and decentralization are central to Espresso’s strategy, with core team members drawn from Stanford University’s Applied Cryptography Group.
The project recently announced a $28 million Series B funding round led by a16z, with participation from Polychain, Coinbase Ventures, Sequoia, and others—forming a high-profile investor lineup.
How to participate: The project is still in early stages. Users can potentially gain early airdrop eligibility by participating as validator nodes. Refer to the official documentation: https://docs.espressosys.com/sequencer/guides/running-a-sequencer-node
Mezo
Mezo is a BTC Layer 2 project focused on the BTC ecosystem, helping BTC holders perform on-chain transfers and financial activities, driving the development of BTC DeFi. Mezo recently announced a $21 million funding round backed by top-tier firms including Pantera Capital, Hack VC, and Multicoin Capital.
The team has publicly disclosed its BTC staking program and introduced a referral mechanism, signaling strong potential for a future airdrop. The project is currently in the early operational phase.
How to participate: 1) Visit the project website and find the invite code on Discord; 2) Enter the invite code and connect your Unisat wallet; 3) Deposit BTC.
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