Today, we are pleased to announce that FUSE has completed a $12 million financing round. Fuse is a core contributor to Project Zero, which aims to address significant energy coordination issues in the renewable energy DePIN.

Fuse was founded by Alan Chang and Charles Orr, who were early employees of Revolut and made significant contributions to its early development. In 2022, they turned their attention to addressing the energy crisis. In recent years, Fuse has built a modern, technology-driven energy company, established a powerful data and engineering system, and aims to provide services to customers with higher cost-effectiveness, surpassing the existing three major utility giants.

Currently, Fuse operates large solar and wind power plants, and is engaged in the installation of Distributed Energy Resources (DER) as a UK electricity supplier, providing power services to tens of thousands of households.

However, this is still not enough to meet the challenges. In order to meet the continuously rising global energy demand, we will need to add 4,000 terawatt-hours of generation capacity every year in the next decade, which is equivalent to rebuilding an entire US power grid every year. In addition, by 2030, an additional $4 trillion investment will be needed annually for grid modernization, storage, and transmission infrastructure, which exceeds the annual GDP of Germany or Japan.

The complexity of geopolitics makes the problem more severe: thousands of jurisdictions, cumbersome regulations and regulatory agencies, and numerous market participants, each with different incentives and constraints. We are facing huge energy challenges in the next decade, requiring a new solution, and this is exactly the mission of Project Zero.

Project Zero is a renewable energy DePIN designed to accelerate the expansion and utilization of distributed energy resources (DER) by incentivizing network participants to shift demand during renewable energy periods, supporting the use of electric travel, and adding new capacity through solar panels or batteries.

The production and coordination of energy is one of the greatest opportunities in our lifetime, but it cannot be solved by traditional means alone. In operating FUSE, Alan and Charles realized that capital formation through encryption technology is key to future development. Project Zero is such an innovation: it serves as an incentive layer, providing the foundation for the most dispersed part of the energy value chain coordination.

The decentralized trend of the energy industry

The current trend in the energy industry is to engage in horizontal integration within specific areas such as generation, transmission, or retail, rather than vertical integration across the entire value chain.

Installation vendors like Trinity focus on the deployment of distributed energy resources (DERs), but do not directly engage in energy retail businesses. Instead, retail energy suppliers such as NRG Energy typically do not provide DER installation services unless these services are combined with traditional power production. Vistra Corp is a major U.S. power producer with diversified assets covering natural gas, coal, nuclear power, and solar power, and operates multiple retail brands such as TXU Energy, Ambit Energy, and Dynegy, but is not efficient in coordinating the supply and demand of its power generation portfolio. These companies mostly operate independently, limiting their ability to achieve maximum economies of scale.

These inefficient problems are particularly serious. Inconsistent data formats and incomplete consumption data make it difficult for grid operators to conduct real-time monitoring and demand forecasting. Dispersed permit frameworks in different jurisdictions hinder the scale development of renewable resource installers and service operators. Information silos hinder retailers' reasonable pricing and Risk Management.

Fuse is re-examining the retail energy supply chain from basic principles and intends to operate at every step of the supply chain to minimize efficiency losses at each stage of the lifecycle from power generation to distribution. They are focused on the mission of providing large-scale, low-cost, clean energy and are working on Reverse planning to achieve this goal.

In the near future, this means solving two specific problems:

1. The inertia of consumer transformation - How do we encourage global consumers to change their consumption habits more effectively to achieve grid load balance in demand response programs, and further adopt home renewable products and distributed energy resources (DERs) such as electric vehicle (EV) chargers, batteries, solar inverters, heat pumps, and smart thermostats?

2. Retail energy distribution standard issues - How do we integrate the decentralized processes between retail energy suppliers, grid operators, virtual power plants, and DER installation service providers, which have always made it difficult to achieve economies of scale in retail energy business through geographical expansion?

Project Zero complements Fuse's vertical integration strategy by serving as an Incentive Layer, helping consumers adjust energy consumption flexibly and develop new renewable energy capacity.

Large-scale Integration of Energy Assets

Fuse aims to transform homeowners into conscious and active participants in energy choices. What the Earth needs are consumers who actively respond to resource usage, rather than treating energy consumption as just a monthly bill item. By creating a pleasant consumer energy experience and managing the incentive allocation of Project Zero, Fuse accelerates this transformation, influencing consumption patterns and encouraging the installation of new capacity.

As a direct-to-customer energy retailer, Fuse has a structural advantage that enables it to capture and distribute value created by solving some of the most complex coordination problems in the field: such as facilitating Demand Response Programs (DRPs), operating Virtual Power Plants (VPPs), establishing low latency metering systems, and leading new interoperable data standards.

Demand Response Plan (DRPs)

By dynamically adjusting energy consumption at the edge of the grid, FUSE fully taps into the potential of demand response programs. Although DRPs can reduce peak electricity demand by 20%, most eligible households worldwide do not participate in these programs. This means that millions of kilowatt hours of electricity can be transferred or reduced during peak periods, significantly reducing operating costs.

When there is a high demand for electricity or insufficient supply, Project Zero can provide token incentives to owners of energy resources in the network (such as smart appliances, water heaters, thermostats, cogeneration systems, solar panels, and batteries), rather than just discounts, to encourage them to reduce or shift their electricity consumption. This balancing ability enables Fuse to stabilize the power grid at critical moments and keep supply and demand in line.

Source: NYC DCAS

The transition of these consumption patterns can help each household earn over $3,000 when reducing one megawatt-hour of demand. In large-scale implementation, a portion of the benefits from these programs can be incentivized and returned to consumers through TOKEN, which can be used to reduce energy bills or directly redeemed for instant rewards.

With more and more households choosing to dynamically adjust electricity consumption through the incentive measures of the Project Zero protocol, Fuse can make more competitive offers in Demand Response Plans (DRP). This enables Fuse to provide greater and more predictable load reduction or shifting capabilities, and we believe that utilities and grid operators are willing to pay extra for this.

Virtual Power Plant (VPP)

Distribuited Energy Resources (DER) installers, such as solar panels, battery storage, electric vehicles and smart appliances, often fail to cooperate with energy retailers, resulting in the inability to provide optimal system size and configuration for homes. This not only leads to a lower penetration rate of DER in the market, but also disconnects these systems from the overall power grid.

In Fuse's vision, Zero incentivizes households to increase new renewable energy capacity and ensure that these additional resources are efficiently utilized. This allows Fuse to operate as a virtual power plant, integrating all distributed energy into a flexible entity that provides valuable services to the grid.

When the grid faces high demand or supply shortages, FUSE will instruct distributed energy resources (DERs) to increase energy production or release stored power. For example, solar and battery storage systems in virtual power plants can rapidly release or absorb power to help maintain grid frequency within a narrow range; while smart thermostats and water heaters can temporarily shut off or adjust in response to demand fluctuations.

As a virtual power plant, FUSE participates in the wholesale energy market, aggregating its DER footprint in the local market to bid at a larger and more predictable scale, rather than solely as an energy retailer. FUSE can also provide services such as voltage support, which is crucial for grid stability. These services can bring substantial revenue, typically up to $100,000 per megawatt capacity annually.

By enhancing the reliability of these services, leveraging advanced metering technology and analytics-based approaches, we expect FUSE to obtain more favorable contracts and higher rewards from grid operators. Ultimately, the benefits of these open market operations will be returned to users who contribute assets to the network.

Advanced Metering and Real-time Data

One ongoing issue that energy producers and retailers face is the lack of real-time data on power plant failures, demand fluctuations, and other factors directly impacting energy production. This makes accurately pricing energy for profit a significant challenge.

By establishing a direct relationship with consumers, Fuse fills this gap by collecting random minute-by-minute data. These real-time information is transmitted to Fuse's advanced billing engine, supporting all pricing decisions. We believe this will enable companies to achieve higher profits and participate in the wholesale market, meaning that every market covered by the network can access cheaper and cleaner energy.

As our customer base continues to expand and we gain a clear understanding of the power grid that serves them, we believe that FUSE has a competitive advantage in profiting from participating in the energy market, and can help other participants in the process.

Building open protocol

In large-scale operations, Project Zero is an open platform that provides transparency to all generated and consumed energy resources, and participants in any energy value chain can access it without permission.

As Fuse accumulates more and more energy assets in the edge network, Project Zero begins to act as a powerful and trustworthy neutral layer. This is the most correct way to build a global energy system for the 21st century: by connecting available energy resources through consistent, interoperable data standards, anyone can build products and services on top of it.

The Road to Abundant Energy

Fuse's unfair advantage in competing with industry giants is to strategically eliminate barriers in machines through encryption coordination of primitive tactics. This approach should be more effective in obtaining and attracting user participation in the closed-loop generation and distribution process, making Fuse ready to become a new type of global energy retailer: not only can it trade electricity more profitably through asymmetric data and system improvements, but it can also incentivize the adoption of renewable energy and ultimately reward its customers at every step.

Alan and Charles have extensive operational experience in regulated consumer environments. The Fuse team is composed of a group of customer-oriented builders and market operators, focusing on addressing the most urgent energy issues of our time.

FUSE is gradually nurturing Project Zero to be its first core contributor, to establish an open and shared platform, and to bring us closer to the 'cheap beyond measure' energy. For more information, please visit www.zero2050.com.

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On September 12, Avenir Crypto officially announced the launch of the "Avenir Crypto Excellence Partners Program" for outsourced Cryptocurrency investment business at the "Future Boundless" themed Quantitative Summit, investing $5 billion to support outstanding quantitative trading teams in the market.

The conference held in Hong Kong this time invited a hundred top leaders from the political, business, and academic sectors to share the theme of current financial innovation and trading strategies. Guests including Jason LAN, CEO of Avenir Crypto, Dr. Rocky TUNG, Director and Policy Research Manager of Hong Kong Financial Service Development Bureau, Hong Hao, Chief Economist of GROW Investment Group, and Jimmy Y. JIN, Associate Dean and Associate Professor of School of Business at The Hong Kong Polytechnic University, attended and delivered keynote speeches, focusing on financial innovation and quantitative trading strategies, discussing how to promote market breakthroughs and progress through innovative technology.

Avenir Crypto CEO Jason LAN has announced the 'Avenir Crypto Excellent Partner Program'

The core keywords of the Avenir Crypto Excellent Partner Program are 'financial innovation' and 'technology empowerment', which are also the strategic focus of Avenir Crypto. Practitioners in the trading field know that quantitative trading is one of the most professional directions, which relies on the support of core technologies such as strategy design, data analysis, mathematical models, Algorithm, etc., and these are exactly Avenir Crypto's expertise. Avenir Crypto has rich experience in data-driven investment trading, especially focusing on the research and development of diversified quantitative trading strategies, including CTA strategies, directional and non-directional strategies, etc. Under the trend of technology empowering finance, Avenir Crypto has already applied its independently developed large-scale model technology to trading, helping to capture market dynamics and improve investment forecasting capabilities. In addition, Avenir Crypto also has independently developed risk control systems, which are indispensable key guarantees in the trading process. Through the combination of large-scale model technology and risk control systems, Avenir Crypto fully demonstrates how 'financial innovation' and 'technology empowerment' can help traders improve returns while effectively controlling risks.

Avenir Crypto, belonging to Avenir Group, is a cutting-edge institutional family office and investment management group committed to investment and Financial Technology innovation in emerging technology fields. It was founded by Mr. Li Lin in 2023, aiming to build an innovative, diversified, and robust investment platform and ecosystem. By integrating financial technology, Avenir Group aims to empower the industry by providing more accurate investment strategies and superior risk management capabilities. According to the 13-F institutional holdings report submitted to the US Securities and Exchange Commission (SEC) on August 2nd this year, Avenir Group has invested a total of approximately $384 million in BTC exchange-traded funds (ETFs), becoming the largest holding institution of FBTC and IBIT, the two mainstream BTC ETFs in Asia, demonstrating its deep investment in emerging technologies and its professional capabilities and strong layout in the encryption asset field.

It is reported that the $500 million will be divided into two modes: U-based and coin-based. The U-based mode consists of 200,000,000 USDT, and the coin-based mode consists of 3,000 BTC and 50,000 ETH. There are also three options for the funding cooperation mode, including 100% contribution, joint contribution on the same level, and subordinate to the manager. At the same time, there will be three options for the profit-sharing mode, including 0-1% management fee and tiered dividend, tiered capital allocation and tiered dividend, subordinate to the manager, and tiered dividend or fixed loan interest rate. Interested excellent quantitative teams can contact [email protected] directly.

Hong Hao and other experts interpret current market issues and Avenir Crypto's innovation

The first agenda is the opening speech by Jason LAN, CEO of Avenir Crypto, who stated that the common goal of this summit is to explore innovation and the future of the crypto market. As the core force of Avenir Group, Avenir Crypto focuses on the comprehensive research and development of crypto trading strategies. With profound insights and outstanding performance in the field of crypto assets, Avenir Crypto leads the forefront development of crypto asset management with technology and data-driven trading strategies.

Given the current market's lack of diverse trading scenarios and products, which fails to fully meet user needs, Avenir Crypto aims to maintain a leading position in trading technology through technology-driven and data-driven quantitative trading strategies. Avenir Crypto hopes to help users conveniently seize profit opportunities and gradually integrate Cryptocurrency into the mainstream financial system, explore cooperation and innovation with traditional Financial Institutions' Depth, and propel the industry to new heights.

The keyword mentioned in the speech of Lan Jianzhong (Jason LAN) is "innovation" of Avenir. The reason for the need for financial innovation is that the current financial sector and even the environment of the whole world are in a state of crisis. The next speaker, Hong Hao, chief economist of GROW Investment Group, shared profound insights on this.

Deflationary expectations are increasing, and global financial markets are interconnected in risk

Hong Hao is not only the chief economist of GROW Investment Group, but also serves as a director of the China Chief Economist Forum, and is a mentor for Master of Finance students at Renmin University of China. Previously, he worked as the head of the research department at BOC International and as the chief global strategist at CICC. He has also worked in the London, New York, and Sydney offices of international Financial Institution such as Citigroup and Morgan Stanley, and has extensive international financial experience.

In his speech, Hong Hao made predictions on the global economy and financial markets Depth, with the theme of 'Global Macroeconomic and Market Outlook'. He first started with the US bond yield, pointing out the potential risks facing the current market. He believes that the normalization of the US bond yield curve needs to be highly alert, especially against the backdrop of the continued high US fiscal deficit. At the same time, he mentioned that the China Central Bank has started to expand its balance sheet, while the implementation of fiscal policy is relatively lagging, implying that the current deflation expectations are strengthening, and policy response is becoming imminent.

"Inflation pressure is rising, system risk is rising, and we currently do not have good hedging tools to mitigate such risks. In this environment, we need to seek areas with lower correlation to traditional finance. Crypto assets, as an emerging asset class, I believe will shine in the new cycle." Hong Hao said at the summit.

Hong Hao further analyzed the pullback of asset prices in the Liquidity-sensitive zone, emphasizing that capital flow is the key factor determining the trend of RMB assets. He pointed out that in the current global economic environment, China's industrial profits have become more closely related to US monetary conditions since 2016, indicating that the economic ties between China and the United States are still close and there is no obvious 'depeg'. In addition, he also mentioned that the macro inventory changes in China indicate a short-term appreciation trend of the RMB, and the Chinese economy is going through a difficult recovery process.

When looking at the global market, Hong Hao particularly mentioned the performance of the US stock market. He pointed out that the current relative returns of the US stock market are far ahead, but as the trend of the US dollar gradually returns to the mean, this advantage may quickly diminish. At the same time, he criticized the monetary policy of the Federal Reserve, believing that its actions are lagging. In particular, the missed opportunity for interest rate cuts has further exacerbated systemic risks globally, and these risks are highly homogenous and may be transmitted between different markets.

As emphasized by Hong Hao in his speech, the global financial market is facing a series of systemic risks and uncertainties, especially the problem of lagging monetary policy and global risk homogeneity. In fact, Crypto Assets are also facing the issues of TradFi. As Avenir Crypto CIO Bing ZHANG said in his speech, 'In the past, the macroeconomy had little impact on the Cryptocurrency world, but now the encryption world and the macroeconomy are more closely linked and mainstream. For example, currently, Nasdaq has 80-90% influence on Bitcoin transactions.' This just requires Avenir Crypto's forward-looking financial innovation, striving to find a breakthrough in this environment. Through technology and data-driven quantitative trading strategies, Avenir Crypto not only provides investors with more diversified trading tools but also actively explores how to better integrate encryption assets into the mainstream financial system, thereby reducing the impact of systemic risks. This innovative spirit responds to the crisis and opportunities in the global financial landscape described by Hong Hao. With its outstanding strategic layout and technological advantages, Avenir Crypto is committed to leading the change in challenges and injecting new vitality into the stable and sustainable development of future financial markets.

The virtual asset investment policy system in Hong Kong is constantly improving.

Realizing the risks and opportunities in the current financial market, as a leader in the Hong Kong virtual asset trading field, Avenir Crypto also realizes that achieving financial innovation cannot be separated from interpreting and grasping the current policy level.

Next, Mr. Rocky TUNG, Director and Head of Policy Research at the Hong Kong Financial Services Development Council, delivered a speech entitled 'Hong Kong's Web3 Ecosystem and the Development of Financial Technology'. Rocky mainly leads the economic and public policy research functions of private and public sector institutions, with over ten years of experience in regulation and policy research, macroeconomics and strategic research, and other management functions, covering topics such as regulatory development, green and sustainable finance, financial technology, governance, assets, wealth management, and economic prospects. He has also worked closely with senior government officials, regulatory agencies, law enforcement agencies, corporate executives, standard setters, and scholars in the Asia-Pacific region, establishing strong relationships and trust.

Rocky TUNG shared the integration and advantages of TradFi (Traditional Finance) and DeFi (Decentralized Finance) in his speech, as well as the main policies and development process in promoting Hong Kong as a digital asset hub.

Rocky believes that the digital economy and Web3 economy directly pair transactions between traders, and now we are gradually seeing increasingly sound regulatory oversight. Rocky mentioned that in June 2023, Hong Kong introduced a licensing system for virtual asset service providers, in November 2023, the Securities and Futures Commission issued a notice on the tokenization of securities and investment products, and in July 2024, the Treasury Department and the Hong Kong Monetary Authority proposed legislative measures to regulate the issuance of Fiat Currency stablecoin issuers in Hong Kong. Hong Kong is currently establishing a sound virtual asset investment system and continuously improving the regulatory framework.

To support the development of the Web3 ecosystem, the government established a special task force for the development of the third generation of the Internet in July 2023, to make recommendations on how Hong Kong can sustainably and responsibly develop the third generation of the Internet. At the same time, it also supports the development of local emerging industries, and attracts international Web3 companies to set up businesses in Hong Kong, providing advanced facilities, comprehensive support, and measures for the new Web3 enterprises settling in Cyberport.

And the policy advantage he mentioned is exactly the advantage and opportunity of Avenir Crypto itself, as Bing ZHANG mentioned, "The Compliance challenges in the cryptocurrency market are numerous, the division is not clear, and the regulatory framework is not clear. But Avenir Crypto has a long-term goal and determination for sustainable financial innovation, so it has been following regulation from the beginning, embracing regulation, and promoting Compliance development. The long-term prosperity of encryption investment business depends on a healthy, Compliance, and innovative ecosystem." Avenir Crypto can fully leverage the advantage of Hong Kong Compliance and regard it as a favorable condition to promote its own financial innovation. By fully utilizing Hong Kong's sound regulatory framework and strong policy support, Avenir Crypto is able to more robustly advance the development and application of its quantitative trading strategies, leading the forefront innovation of the encryption market. In such a policy context, Avenir Crypto can not only better serve users, but also explore the integration of Depth with the TradFi system, achieving sustainable industry rise and financial innovation.

The Resilience of Stablecoins

Finally, Jimmy Y. JIN, Associate Professor and Assistant Dean of the School of Business at the Hong Kong Polytechnic University, gave a keynote speech on the role evolution of Stablecoin in current encryption transactions, starting from the bankruptcy of Silicon Valley Bank. Professor JIN also serves as the Director of the Business Technology and Innovation Center at the Hong Kong Polytechnic University, Co-Director of the Center for Economic Sustainability and Entrepreneurial Finance, and Associate Director of the Doctor of Management (Hong Kong) Program. His research interests mainly include fintech, artificial intelligence, the application of blockchain in the financial field, technology management, and digital transformation.

Professor JIN's speech is titled 'Silicon Valley Bank's Exodus: The Evolution of Stablecoin in Centralized Exchanges (CEX) and Decentralized Exchanges (DEX)'. It provides an in-depth analysis of the market transformation and role change of Stablecoin derived from the Silicon Valley Bank crisis. Stablecoins can be classified into Fiat Currency Collateralized, Commodity Collateralized, Encryption Asset Collateralized, Algorithmic, and Hybrid types, each facing different challenges such as regulatory scrutiny, asset volatility, and Algorithm design risks.

By analyzing the bankruptcy case of Silicon Valley Bank, Professor JIN analyzed the performance and response of DAI, USDC, and USDT under market pressure, as well as their resilience to market fluctuations. In addition, the information flow between different Stable Coins was analyzed, and its impact on market behavior and pricing was emphasized by Professor JIN. He also highlighted the role of Stable Coins in financial stability, as well as the challenges and opportunities they face during market volatility.

Professor JIN's sharing and Hong Hao's mention of global financial risks in his speech reveal the vulnerability and coexistence of opportunities in market crises. Avenir Crypto deeply recognizes that maintaining a sound Risk Management capability is crucial in the current complex macro environment. While utilizing advanced technology for financial innovation, Avenir Crypto also actively responds to policy changes, builds a strong risk control system, and ensures that its trading strategies remain stable and resistant to risks in market turbulence. This risk awareness is the cornerstone of Avenir Crypto's sustainable innovation in the face of global financial uncertainty.

Avenir Crypto: The Innovative Leader Breaking Through Market Dilemma

The second item on the agenda of the summit is a special discussion hosted by Bing ZHANG, CIO of Avenir Crypto, inviting four heavyweight guests including Augustine FAN, CFO and Partner of SignalPlus focusing on derivatives trading, Teong HNG, Founder and CEO of Satori Research, John CAHILL, COO of Galaxy Digital Asia, and Zhiming YANG, co-founder of Orbit Markets, to jointly explore the integration and future development path of Cryptocurrency and traditional trading, covering macroeconomics, global market status, investment strategies, encryption regulation, trading infrastructure, and more.

On these topics, the guests shared their views. When it comes to the integration of TradFi and Cryptocurrency, Teong HNG said, 'I didn't believe in Cryptocurrency before, but later I saw many top and smart bankers switch from TradFi to Cryptocurrency. I started to think that Cryptocurrency is indeed different, so I was headhunted to Satori to build a trading platform.' Zhiming YANG shared a different perspective, 'TradFi feels boring, but I see money-making opportunities in the Cryptocurrency industry.'

When it comes to the current situation and development of the encryption industry, Augustine FAN said, "BTC is digital gold." John CAHILL emphasized, "Cryptocurrency will have an impact on the banking industry."

In the transition from TradFi to Cryptocurrency, the market faces the influence of factors such as the Federal Reserve's interest rate hikes, global geopolitical tensions, and artificial intelligence. Avenir Crypto, with its strong Risk Management and capital allocation capabilities, can effectively respond to these macro Fluctuations, ensuring the robustness of its trading strategies. This ability enables it to provide stable returns to investors even during market volatility.

In the discussion, Avenir Crypto shared the strong performance of Bitcoin and Solana, while also acknowledging the plight of most alts. Despite the downturn in the Primary Market, Avenir Crypto is committed to providing investors with more high-quality products and filling the market's need for efficient trading tools through advanced quantitative trading strategies and technological innovation. Avenir Crypto aims to help users find profitable opportunities in complex market environments by offering more trading tools.

More importantly, Avenir Crypto brings liquidity and volatility to the market through quantitative trading, activating market activity. Many AltCoins lack volatility, so they fail to attract sufficient trading capital. Avenir Crypto's quantitative strategy not only brings market liquidity but also creates more trading opportunities for investors, driving the overall market activity.

In addition, Avenir Crypto is also very concerned about the current construction of Decentralized Finance infrastructure. Despite the incomplete nature of the infrastructure of Decentralized Finance, especially the security concerns of large capital, Avenir Crypto ensures the security and compliance operations of funds with its Hong Kong compliance advantage. This is particularly important for institutional investors and large-scale funds. With stable infrastructure and innovative quantitative products, Avenir Crypto provides these investors with a safe and potentially profitable investment environment.

In short, Avenir Crypto has become one of the few asset management companies in the market that can address systemic risks and bring long-term rise to investors through its excellent quantitative trading strategies, sound risk control system, and Compliance operations. In the current market environment, Avenir not only solves the problems of liquidity shortage and inadequate trading tools, but also provides investors with more high-quality trading opportunities and products.

On Thursday, new inflation and labor data from the United States further supported expectations that the Fed will begin cutting interest rates next week, with financial asset prices trending higher.

The US August Producer Price Index (PPI) report showed that wholesale prices rose by 0.2% pump on a month-on-month basis, slightly higher than economists' expectations, while rising by 1.7% pump year-on-year, in line with expectations.

The market currently expects the Federal Reserve to cut interest rates by 25 basis points next week, but some traders still hope for a 50 basis point cut. The FedWatch Tool from the Chicago Mercantile Exchange (CME) gives a 28% probability of a 50BP rate cut, higher than yesterday's 14%.

The three major US stock indexes closed pump, with the S&P, Dow Jones, and Nasdaq indexes pumping 0.75%, 0.58%, and 1.00% respectively. Spot gold soared 1.91% during the trading session, setting a new historical high just below $2,560 per ounce.

The Bitpush data shows that BTC (BTC) surged to above $58,000 in early Thursday trading, fell to a low of $57,310 at midday, and long positions successfully pushed the price back above $58,000 in the afternoon, challenging the resistance level of $59,000.

As of the time of writing, the BTC trading price is $58,217, with a 24-hour increase of 1.53%.

In the Altcoin market, Tokens ranked in the top 200 by Market Cap have seen a general increase. The largest increase is Worldcoin (WLD), with a growth rate of 14.6%; followed by Trust Wallet Token (TWT) with a growth rate of 14.3%; Sui (SUI) with a growth rate of 13.9%. The biggest decrease is GMT (GMT) with a decline of 6.2%; SuperVerse with a decline of 5%; ConstitutionDAO (PEOPLE) with a decline of 4.3%.

The current market capitalization of the cryptocurrency is 2.05 trillion US dollars, and BTC's market share is 56.3%.

Expected Fluctuation

Market analyst Bloodgood said that the CPI and PPI inflation data released this week is not much different from the forecast. The Fed seems to be entering a fairly orderly rate-cutting cycle, which should be very favorable for risk assets.

Bloodgood pointed out that, from a historical perspective, interest rate cuts "often come with some initial downward Fluctuation, but considering the upcoming election, this Fluctuation should weaken. Unless there are some truly unexpected economic developments, the macroeconomic outlook for the fourth quarter still looks bullish from a fundamental perspective."

Regarding BTC, Bloodgood pointed out that since last week, the BTC price has fallen to around $50,000, but long positions have intervened to 'save the situation' because this pullback is not as quick as in early August, indicating that short positions are exhausted.

Bloodgood concluded: "As of writing, BTC is below the breakout area, which is a key level in the recent trend. Breaking this level will quickly lead to higher levels, while falling below it will likely test $50,000 in the coming weeks. From a TA perspective, the structure still looks bearish, so I won't be hopeful until the lower high is broken."

TradingView analyst TradingShot said that the rate cut will lead to an increase in global Money Supply, which could be a factor driving the next pump of BTC.

TradingShot says, "With the Fed preparing for its first rate cut since the start of the rate hike cycle in February 2022, it will be very exciting to see what the global Money Supply and more circulating currencies mean for Bitcoin."

In the figure above, the light green and red candles (at the top) represent the Global Liquidity Index (GLI), composed of the Federal Reserve, TGA, RRP, European Central Bank, People's Bank of China, Japanese Central Bank, Bank of England and other central banks. The icon tracks and measures the liquidity / money supply / circulation of currency in the global economy.

TradingShot said: 'When the Central Bank cuts interest rates, they are actually printing more money, injecting a large amount of cash into the system, causing the depreciation of the currency in circulation. When this happens, companies and/or individuals are more likely to obtain more funds through loans and other means, thereby increasing their spending/purchasing/investment capacity. In principle, this means that investors are more likely to purchase higher-risk assets, leading to a pump in value. Stocks and Crypto Assets belong to this category.'

"As this chart shows, it's not surprising that BTC (the candle at the bottom) pumps whenever GLI starts pumping, and more specifically, when Liquidity drops and plateaus, a Bear Market cycle for BTC is formed, and when it breaks through the resistance level, BTC starts the Rebound phase of its Bull Market cycle," TradingShot analysis said. After the Fed's aggressive rate hikes sent us back to pre-2008 housing crisis levels, GLI experienced a stronger decline, and instead of flattening, it formed a wedge with lower highs as resistance. The GLI is now right on this lower high trendline, and if breached, we could have a breakout similar to the previous cycle resistance breakout, triggering a parabolic rebound for BTC."

SDM analysts believe that BTC has rebounded from the support level of $56,600, which is consistent with the bullish crossover observed on the 4-hour chart, where the 20-day and 50-day Moving Averages (MA) intersect. Additionally, the oscillation indicator within the same time frame shows a bullish divergence, indicating a potential upward reversal in the short term. However, although technical indicators can provide insights into trends, relying solely on these indicators is not enough to accurately predict future trends. Whether the rebound will drive BTC to break through the key level of $60,000 and reach the upper limit of the six-month trading range remains to be seen.

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