BTC closed -1.05% last week while S&P500 closed -2.93% as the result of hawkish outlook from last Thursday FOMC meeting. The Federal Reserve kept the rate unchanged in the September meeting. However, the latest dot-plot showed that 12 out of 19 Fed members expected another rate hike in 2023 and increased the median federal fund rate in 2024 from 4.6% in June projection to 5.1%, showed little room for potential rate cuts. US bond yield increased to cycle high, 10 years yield closed 4.436%, 10.2bps higher than the previous week.

 

Despite the hawkish projection from FOMC meeting, the market still expects 74.5% chances Fed will keep the rate unchanged in November, 59.3% chances Fed will keep the rate unchanged at the end of 2023, shows little confidence in Fed expectation.

The US government shutdown is expected to start in October. Essential workers will work without pay, the number of staff will scale down relatively.

The US Money Market Fund decreased $7.04 billion last week, potentially allocated the fund to Bond Fund for favourable capital market rate and hedge to the soften of economic outlook in 2024.

 

Upcoming Economic Calendar including,

Wednesday, 27th September 8:30pm: US Durable Goods Order in August

Thursday, 28th September 8:30pm: US Finalised Q2 GDP Growth Rate

Friday, 29th September 8:30pm: US PCE Price Index in August and Personal Spending

Several Fed members will be speaking this week, including chair Powell at 4am Friday.

 

This Friday, $3billion value Deribit BTC options will expired with the max-pain price of $26,500 as well as CME future expiration.

BTC 30-day Pearson correlation to S&P500 showed decrease from 0.18 to 0.02 last week.

Mt Gox had delayed the deadline of the Base Repayment, the Early Lump-Sum Repayment and the Intermediate Repayment from 31st October 2023 to 31st October 2024.

Tim Beiko, core ETH developer and the chair of ACDE calls, stated if Dencun public testnet is not launched before Ethereum Devconnect 13th to 19th November, then mainnet activation of Dencun most likely would not happen in 2023.

21st September, ETH gas prices above 300gwei as the result of Binance accumulated the distributed ETH from inactive deposit EOA addresses.

ETH had experienced annualised inflation of 0.28% last week due to low on-chain activities. 

 

Arbitrum Odyssey is resumed on 26th September for 7 weeks (no airdrop allocated, only badges collection), 50M ARB has passed for short-term incentive program and unclaimed 69.45M ARB has been recalled back to Arbitrum DAO Treasury.

Optimism issued 19M OP Airdrop#3 to 31k unique addresses which delegated to a delegate who voted in Optimism Governance. Applications for RetroPGF Round 3 are open, 30M OP will be allocated to selected contributors. Optimism also disclosed 116M OP of private sales to 7 purchasers with 2 years lock-up from unallocated portion of the OP token treasury.

Canto announced migrating to Ethereum Layer 2 with Polygon CDK.

Metis announced Metis Journey, allocating a $5M DeFi Incentive Program. 100K METIS token will be allocated to Aave V3.

Eclipse announced Eclipse SVM architecture, Solana VM with RISCO Zero ZK fault proof to settle on Ethereum and Celestia as DA layer. Expected to launch in 2024, since Celestia is expected to be launched at the end of 2023 or early 2024.

Coinbase chief legal officer stated Base might issue tokens in the future when there is better regulatory clarity.

 

Injective announced inEVM, enables EVM dApps in Injective achieve direct composability across Cosmos and Solana. Injective also launched .inj domains with SPACE ID pre-registration event.

Radpie, Radiant Capital flywheel protocol is live, enables dLP holders to share revenue without any lock-up period, zap feature, boosted liquidity pools and more.

Balancer frontend had faced DNS attack, more than $200K users' fund stolen, and regained control after approximately 19 hours later.

Li.Fi, cross chain bridge aggregator, was chosen to be part of the Mastercard's Start Path Blockchain and Digital Assets program.

GMD Protocol introduced GMX V2 delta-neutral vaults.

Lens Protocol joined Consensys Fellowship.

Chainlink CCIP is live on Arbitrum One.

Centrifuge announced to launch in Arbitrum and Base chain.

Yearn launched the yETH vault with diversified LSD composition.

 

SEC appeal deadline in Grayscale case closed on 13th October, while the next round of response date for BTC spot ETF starts on 16th October.

Frax V3 audit has concluded, mainnet launch is expected very soon.

Multiple protocols are proposed in Arbitrum forum discussion for Short-Term Incentive Program requests.

Sushi proposed Bond Program to Arbitrum with 12M ARB maximum allocation per quarter.

The Radix Babylon upgrade is expected on 27th September, introducing wallet-supported human-readable transactions, easy deployment of safe dApps and more.

Merit Circle proposed conversion of MC token to BEAM token on 1:100 basis until the end of 2023. BEAM token will be used for Beam Network gas and governance purposes.

OP Token Unlocked on 30th September, amount representing 3.03% of the token supply.

dYdX Token Unlocked on 3rd October, amount representing 1.23% of the token supply.