While Bitcoin and ether closed the week with an increase of over 3%, double-digit increases in altcoins attracted attention. Memecoins, led by dog-themed ones, saw a value increase of over 20%.
There are several factors that are effective in making this week positive. Chief among these are;
Institutional investors continued their investments in cryptocurrencies throughout the week, Personal Consumption Expenditures (PCE) data from the USA were below expectations, and US presidential candidate Harris made positive statements about digital assets and blockchain.
On Thursday, $365 million inflows into spot bitcoin ETFs were recorded, the highest investment since July. Following the PCE data announced on Friday, investor appetite increased further and a higher money inflow of 494 million dollars was realized. The investment of over 1.1 billion dollars in the whole week became one of the biggest supporters of the increase in value.
Personal Consumption Expenditures (PCE) is one of the important indicators that the FED takes into account when monitoring inflation. Contrary to expectations, PCE increased by 0.1% instead of 0.2% on a monthly basis, indicating that the FED is successful in its fight against inflation. This situation strengthens the expectation of a 50 basis point interest rate cut instead of 25 at the meeting to be held in November. Since increasing interest rate cut expectations generally affects the markets positively; We saw a reflection of this when Bitcoin rose above 66 thousand dollars after the release of PCE data. Among the important data coming this week: There are CPI data from the euro area and non-agricultural employment and unemployment data from the USA.
Kamala Harris, who announced at the beginning of the week that she would support innovative studies in the field of artificial intelligence and digital assets, strengthened these statements by further detailing them in the middle of the week. In a speech on Wednesday, he again pledged that the United States will remain dominant in artificial intelligence, quantum computing, blockchain and emerging technologies. Although I find it positive from a sectoral point of view that he clearly uses the concepts of digital assets and blockchain in his speeches, I still believe that he does not provide clarity about SEC Chairman Gary Gensler, the troublemaker of crypto, and his policy towards cryptocurrencies.
Speaking of politicians and crypto, there is a website in the USA where you can objectively examine politicians’ views on cryptocurrencies. StandWithCrypto, an initiative launched by the Coinbase exchange to support the cryptocurrency industry, offers a service where you can quickly and easily see the views of politicians in the USA on cryptocurrencies. In addition to the rhetoric, politicians’ crypto-friendly or anti-crypto stances are also scored on this site; Although Kamala Harris seems positive with her recent statements, she is expected to speak more openly in order to be evaluated as a friend or opponent.
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