Welcome to Asia Pacific Morning Brief. An essential digest of overnight cryptographic development that shapes regional markets and global sentiment. Monday’s edition was a summary from last week, and this week’s forecast was brought by Paul Kim. Grab some green tea and look at this space.
The crypto market finally saw a huge momentum last week. As of UTC on Sunday at 4pm, Bitcoin price had risen by 4.78%. Altcoins surged even higher, with ETH climbing to 7.72% and SOL surged by 22.65%.
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Up Rate Cut Hoped Library
The major driver behind the recent surge in crypto and other risky assets has seen a rise in expectations for US interest rate cuts. This expectation escalated after the release of US Non-Agricultural Payroll (NFP) figures for August on September 5th.
Following that report, the market had been reduced by 0.75 percentage points by the end of 2025 and by 1.5 percentage points by September of the following year.
However, the Federal Reserve is reluctant to unilaterally cut fees as consumer inflation is stubbornly high and it has stabilized around 3%.
The recent surge in the market has been driven primarily by promoting inflation data. On Wednesday, it was announced that the US Producer Price Index (PPI) for August fell 0.1% per month, not reaching the expected 0.3% increase. This marked the initial drop in producer prices in four months.
A closer look at the data revealed significant details. Corporate profit margins in particular for machinery and vehicle wholesale and retail businesses have declined. This suggests that businesses will absorb some of the increased costs, rather than completely passing it to consumers. Experts interpreted this as a sign that inflationary pressures are easing more than expected.
The US August Consumer Price Index (CPI) met market expectations on Thursday. The rise in inflation remained high, but the market reassured that the pace was not accelerating. In response, the Bitcoin price was recovered to $115,000 for the first time in two weeks.
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Ethereum prices had been shining for the first time earlier last week, but by Tuesday, Capital had flowed into the Spot ETF market, making it slightly more positive.
The actual surge began after Thursday’s CPI report, with ETH rising more than 8% in just two days. On Friday alone, more than $400 million drove into the spot ETF market, turning the two-week slump around.
Solana struggled to break the $210 level for months, but recovered for eight consecutive days. This strong momentum was evident in both futures and spot markets.
The fact that Futures Open Interest surpassed $8.1 billion before CPI data was released underscores the strength of this momentum. Larry has also activated the Solana ecosystem, and its total value is locked (TVL) exceeds $13 billion amid an increase in rejections.
Last week: Powell’s words are important
After a strong gathering over the weekend, Bitcoin has returned to the level of just $115,000 and entered the consolidation period. Other major coins such as ETH, SOL and Avax have also experienced mild price corrections.
The most important event of the week was the results of UTC’s Federal Open Market Committee (FOMC) meeting on Wednesday at 6pm. A 0.25% point rate reduction seems to have everything to be sure about. However, Key will be given a press conference by Chairman Powell. If he shows his willingness to cut rates in the future, Bitcoin can see further profits.
Other important data releases include US retail sales figures on Tuesday. Too few of these numbers can lead to increased concerns about slowing the economy and negatively affect risk assets. We look forward to the investors having a profitable week.
