Volatility Creeps Back

DAILY MARKET OVERVIEW

September Choppiness

👋 Hey, Crypto Enthusiasts! September is already living up to its reputation for volatility. Let’s break down today’s action and what it could mean moving forward.

BTC started the day showing some strength, partly fueled by a $450M Strategy buy from August 26 to September 1. But the optimism didn’t last - after the purchase announcement from Michael Saylor, Bitcoin quickly sold off along with stocks.

So what spooked markets ❓️ 

• Today’s U.S. Manufacturing report came in weaker than expected, pointing to slowing growth.

• At the same time, companies are still paying higher prices for materials, which suggests inflation pressures may remain sticky.

That combination, a potential slowing economy and sticky inflation, scared investors.

Stocks sank, gold broke out as a safe haven, and interestingly, BTC bounced back too. Some traders clearly see Bitcoin as a secondary hedge against inflation, right alongside gold. That’s a great sign for the “digital gold” narrative.

⚠️ But let’s stay cautious. For this BTC strength to really mean something, bulls need a strong daily close above $112K.

Until then, volatility is likely to stay high, especially with the VIX (Volatility Index) rising. And with more jobs and unemployment data still to come this week, the swings aren’t over yet.

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SOCIAL SENTIMENT

Alts Struggle to Keep Up

While BTC showed resilience today, altcoins struggled to follow. This adds weight to the idea that September could be a Bitcoin-first month, with BTC dominance beginning to rise again.

One name to keep an eye on: Solana. Against ETH, SOL is showing signs of a potential reversal, hinting it could outperform even if most alts lag.

The big picture:

• If fear continues to grow and gold keeps pushing higher, BTC may benefit as “beta to gold.”

• Alts could be left behind in that environment, unless selective narratives like Solana’s gain traction.

• ETF flows are another piece to watch - if they turn positive again later this month, majors could see relief while alts remain under pressure.

👀 For now, the market’s message is clear: BTC is holding the spotlight, and alts are fighting for scraps.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Trump Family’s Crypto Fortune Surges to $5.6B
The Trump family’s WLFI token stake ballooned in value after launch, giving them paper wealth larger than their real estate empire.

Crypto.com and Underdog Launch Sports Prediction Markets
Crypto.com and Underdog are teaming up to offer sports prediction markets in 16 states, letting fans trade NFL, NBA, and MLB outcomes.

Hyperliquid Hits $106M in Record Revenue
Decentralized exchange Hyperliquid recorded $106 million in August revenue, driven by $400 billion in perpetual trades and growing institutional adoption.

BNB Whale Loses $27M to Phishing Scam
A BNB whale fell victim to a phishing attack, losing $27 million. Security firms suspect North Korean-linked hackers behind the scheme.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Miles Deutscher – Trump's WLFI Coin JUST Launched - Bad For Altcoins?? (02.09.2025 Summary)

Trump’s new World Liberty Finance (WLFI) coin just launched, and many in crypto are asking if it could hurt the altcoin market. Miles broke it down with a clear outlook:

Key points:

• WLFI could pull some liquidity away from altcoins, but it won’t likely be as intense as the Trump token hype earlier this year

• The launch has been messy, with confusion over how many tokens are in circulation, making it harder for traders to trust the setup

• The biggest wildcard is Trump himself - if he actively promotes WLFI, it could rally, but if he stays quiet, the effect will be muted

• Bitcoin looks weak in the short term, but Ethereum and Solana are holding stronger, which is supporting the altcoin market

• September is usually a rough month for crypto, so some chop is expected - Miles is using dips to build Bitcoin, ETH, and Solana, while taking small bets on low-cap coins for long-term upside

Bottom line: WLFI may pull some money out of alts, but it’s not a market breaker. Miles is staying focused on core positions and treating any weakness as a chance to accumulate.

Lark Davis – What If The Fed Doesn't Cut In September? (02.09.2025 Summary)

Everyone’s expecting the Fed to cut rates in September, but Lark Davis asks - what if they don’t? He plays devil’s advocate and explains why it’s worth considering the downside.

Key points:

• Powell left the door open for cuts, but his Jackson Hole speech was cautious - inflation is closer to target, but not low enough yet

• Inflation data is mixed: CPI steady at 2.7%, but PPI jumped, which could push prices higher in the coming months

• Job growth is slowing, yet unemployment is still low and wages are rising - giving the Fed room to hold rates if they want

• Some Fed officials are openly doubtful about cutting in September, saying inflation is still closer to 3% than 2%

• Markets are pricing in an 86% chance of a cut, but if Powell surprises and holds, expect pain first - though Lark thinks any dip would be short-lived

• Longer term, he believes rate cuts are coming, especially if Trump replaces Powell in 2026 with someone more dovish

Bottom line: If the Fed cuts in September, risk assets (including crypto) get a boost. If not, brace for short-term pain but also potential buying opportunities before the next easing cycle kicks in.

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