Bitcoin and other cryptocurrencies were left behind by the stock market after the encouraging US inflation report. The Dow Jones rose by 242 points while the S&P 500 and Nasdaq jumped by over 0.40%.
Bitcoin retreated to $58,000 while Ethereum, Solana, and Ripple have all fallen by over 2% in the last 24 hours. At the same time, there are signs that some crypto traders are moving to Poodlana (POODL), the upcoming Solana meme coin.
Bitcoin and altcoins are not doing well
Bitcoin and other altcoins reacted mildly to Wednesday’s US inflation numbers. According to the Bureau of Labor Statistics (BLS), the country’s inflation dropped to 2.9% in July as it fell for four consecutive months. Most notably, the core CPI fell to 3.2%.
Therefore, these numbers mean that the Federal Reserve will start cutting rates as soon as in its September meeting. Some analysts, especially those at Evercore, believe that the bank will deliver a rate cut before the scheduled meeting if conditions worsen.
In theory, these numbers should have been bullish for Bitcoin, Ethereum, and Ripple since risk assets tend to do well when the Fed is about to start cutting interest rates. A good example of this is what happened during the pandemic as the Fed slashed rates to zero. Most coins soared to a record high at the time.
The reversal happened in 2022 as the bank pushed interest rates to the highest point in over two decades. Bitcoin slumped to $16,000 during that year and then bounced back in 2023 as hopes of rate cuts rose.
Bitcoin is also struggling despite more investments in the coin. On Wednesday, it was revealed that Goldman Sachs held Bitcoin ETFs worth hundreds of millions of dollars. Other top institutional investors who hold Bitcoin ETFs are the likes of Blackrock, Susquehanna, and Morgan Stanley.
Poodlana is doing well
Meanwhile, investors are moving to Poodlana, an upcoming meme coin that will start trading on Friday.
The developers have raised over $7.5 million in the past few weeks and they would have raised more money because of the elevated demand. These funds make it one of the most popular and successful token sales of the year.
Poodlana is a new meme coin that aims to be the biggest token in the industry. It is based on Poodle, a popular dog brand found in Japan and other Asian countries.
The Poodlana token sale comes at a time when demand for Solana meme coins is still elevated. This year, tokens like Book of Meme (BOME), Popcat, and Dogwifhat have done well and outperformed big coins like Bitcoin.
Its token sale is also notable because the token will be available on Raydium, the biggest DEX in Solana shortly after launch. MEXC is also expected to list it a few days later while the developers have hinted that more listings are coming. Binance, the biggest crypto exchange, may list the token in the coming weeks.
Poodlana’s token sale will end on Friday and start trading 60 minutes after ending and the opening price will be $0.06. This means that people who bought the token sale a few weeks ago will see immediate returns. You can buy the Poodlana token here.
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