The market received good news from the US August PPI report, which strengthens expectations that the Fed may soon cut interest rates. Meanwhile, continuous revisions to jobs data are keeping the market cautious.

Market Overview

US equities saw mixed performance on Wednesday (September 10th, US), with the Dow Jones falling 0.48%, while the S&P 500 gained 0.3% and the Nasdaq traded sideways. Stock futures showed a slight increase. Gold rose slightly to around $3683 per ounce. Oil prices were at $63.6 per barrel.

Bitcoin rose to $114,000. Major altcoins also saw slight gains or traded sideways. The overall crypto market capitalization returned to the $4 trillion mark.

US BTC spot ETFs saw a surprisingly large inflow on Wednesday, totaling $741.5 million. ETH spot ETFs also had a significant inflow of $171.5 million. Most funds recorded inflows, with no fund experiencing outflows on this day.

PPI Data Beats Expectations, Fuels Dovish Fed Bets

The US Producer Price Index (PPI) for August saw an increase of only 2.6%, which was significantly lower than the 3.3% forecast. Core PPI, which excludes volatile items like energy and food, also registered an increase of 2.8%, compared to the 3.5% forecast.

This development shows that price pressure at the production level is easing faster than expected, reinforcing the view that consumer inflation could continue to cool in the coming months. This increases market expectations that the Federal Reserve (Fed) will have more room to cut interest rates soon, to support economic growth amidst signs of a weakening labor market. The market is now focused on the possibility of an early Fed rate cut. Pressure is mounting from weak jobs data and signs of cooling inflation, though risks remain as new tariffs from the Trump administration could cause prices to rise again.

The August CPI is seen as the most important index of the week, with a forecast of a slight increase to 2.9% from 2.7% last month. Meanwhile, core CPI is expected to hold at 3.1%.

President Trump has consistently called for the Fed to cut interest rates quickly and aggressively, citing the risk of recession, the national debt burden, and political pressure ahead of the election. Congress is also exerting similar pressure, as high mortgage costs are causing difficulties for many citizens. According to the CME FedWatch Tool, the market is pricing in a 100% probability of a Fed rate cut at the September 17th meeting, with 92% leaning towards a 0.25% reduction and 8% believing it will be a 0.5% cut. Additionally, investors expect two more cuts in October and December, for a total of three rate cuts this year.

President Trump continues to want to increase his influence at the Fed. Recently, the Senate Banking Committee approved President Donald Trump's nomination of Stephen Miran to the position of Fed Governor, replacing Adriana Kugler who had resigned. Miran, currently the Chairman of the Council of Economic Advisers, has pledged to serve the remainder of Kugler's term (until January). This move came shortly after a federal court temporarily blocked Trump from firing Fed Governor Lisa Cook while her lawsuit is being heard.

Besides the inflation reports, US employment data is causing concern as it has been continuously revised downwards, with a total of approximately 911,000 jobs adjusted in the past 12 months. Even last month's figures were revised, causing the market to lose faith in reports from the Department of Labor. In response to this unusual situation, the Bureau of Labor Statistics has opened an internal investigation to clarify the cause.

Updates on Vietnam's Crypto Asset Regulation

Following the news about Vietnam's recently announced digital asset resolution on September 9th, I received some feedback on certain points of the resolution. One piece of feedback shared was that, according to Resolution 05/2025 of the Government and the 2025 Civil Code, a "digital asset" is defined as an asset in the form of digital data that is created, issued, stored, transferred, and authenticated by digital technology in an electronic environment. A "crypto asset" is a form of digital asset that uses cryptographic technology for authentication during its creation, issuance, storage, and transfer.

However, the 2025 Civil Code has not yet clearly defined whether Bitcoin, Ethereum, or other cryptocurrencies are recognized as digital assets or crypto assets. The resolution on crypto assets currently focuses on crypto assets backed by real assets (such as gold, real estate) and has not specified details about free-floating cryptocurrencies that are not backed by real assets. Therefore, whether Bitcoin and other cryptocurrencies on the market are considered crypto assets under Vietnamese law is still an open question, and we must wait for additional guiding documents.

Other Key Crypto & Market Updates

Larry Ellison, co-founder and chairman of Oracle, saw his net worth increase by over $100 billion in a single day after Oracle announced its cloud infrastructure revenue is projected to grow 14-fold in the next 5 years, causing its stock to surge by nearly 36%. Ellison also emphasized that Oracle has now surpassed competitors like ServiceNow and Workday.

Regarding tariffs, President Trump stated that the US and India are continuing negotiations to resolve trade barriers. He will soon have a discussion with Prime Minister Modi, whom he called "a very good friend." Trump expressed confidence that the negotiations will be successful and beneficial to both nations.

Binance has partnered with Franklin Templeton—an asset management giant with over $1.5 trillion in assets—to bring blockchain technology to traditional finance. The partnership focuses on asset tokenization, simplifying financial management, and expanding investment opportunities for individuals. Franklin Templeton has already launched a government bond fund on the blockchain and affirms that blockchain is a tool to upgrade the financial system, not a threat.

Belarus is encouraging banks to use crypto to reduce the impact of US and EU sanctions. President Lukashenko called on banks to expand their use of digital assets, allowing crypto exchanges to double international payments this year, and has asked parliament to create clear regulations for the crypto market.

BlackRock is expected to launch a Bitcoin ETP (BTCN) on the London Stock Exchange in October 2025, after the FCA lifts its ban on Bitcoin ETNs on October 8th. This will open up opportunities for UK retail investors to buy Bitcoin ETNs. An ETN is a debt instrument based on an index, different from an ETF that holds actual assets, and carries risks related to the issuer's solvency. Previously, only professional investors could access Bitcoin ETNs from companies like Bitwise, WisdomTree, and 21Shares.

Sources

• Bloomberg
• CoinDesk
• U.S. Treasury
• TradingView
• Reuters
• SEC
• White House Press Office
• CME FedWatch Tool
• Oracle Investor Relations
• Binance Official Blog
• Franklin Templeton Official Announcements
• BlackRock Investor Relations
• FCA Official Announcements
• Bitcoin Magazine
• Dune Analytics
• Chainlink

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.