Weekly Insights: Big changes are happening in the financial worlds of China, the US, and the EU. Each region faces its own unique challenges. China is battling deflation, the US is seeing slowing inflation, and Europe is struggling with low inflation. Here’s what the markets are signaling, what central banks are planning, and what crypto investors should keep an eye on.
China: Deflation Fears and Hesitant Stimulus
Source | breezyscroll.com
China is facing tough times with prices falling and demand weakening. In September, consumer and factory prices dropped more than expected, causing concerns about deflation. Inflation barely increased by 0.4%, and producer prices fell by 2.8%, signaling a slowdown in China’s economy.
Investors are frustrated because Beijing has been slow to announce a strong stimulus plan. While people wait for action, sectors like property and automotive are struggling. Analysts warn that China might not hit its 5% growth target this year, which could have significant impacts on global markets, including crypto.
United States: Mixed Signals from Inflation
Source | Interactive-wealth
In the US, inflation is cooling down, but not in a straightforward way. While headline inflation dropped to 2.4% in September, core inflation (which excludes food and energy) rose slightly to 3.3%. US Bureau of Labor Statistics
The Federal Reserve has been raising and cutting interest rates to control the economy’s slowdown, but prices in areas like used cars and car insurance are still rising. Despite this, the Fed is likely to cut interest rates by 25 basis points in November, as markets remain calm. For crypto traders, the US economy may seem stable for now, but rising wages and global slowdowns could bring surprises in the future.
Europe: ECB Fights Low Inflation
Source | Business Today
In Europe, the European Central Bank (ECB) is dealing with the opposite problem: too little inflation. Prices in the Eurozone have dropped to 1.8%, below the ECB’s 2% target. The bank is expected to cut interest rates soon, but there are larger concerns: weak growth, low investment, and an aging population.
Although ECB President Christine Lagarde believes inflation will return to 2% by 2025, many experts are doubtful. Some argue that the ECB has been too slow to respond, potentially leading to long-term economic challenges. For crypto investors, Europe’s economic struggles might push them toward riskier investments in digital assets.
What the Central Banks Are Expecting
- The Federal Reserve in the US is planning a small rate cut.
- The ECB in Europe is preparing to reduce borrowing costs.
- China’s central bank is still deciding whether to introduce a more significant stimulus package.
Central banks are being cautious in their approach, trying not to worsen the situation.
Key Events to Watch This Week
- OPEC Monthly Report – Monday
- September Retail Sales Data – Thursday
- Philly FED Manufacturing Data – Thursday
- 11 FED Speaker Events this week
- 10% of S&P 500 Companies Earnings Report
Cryptocurrency
Arkham Intelligence Derivatives Exchange Launch
Source | ArkhamIntelligence
Arkham Intelligence, supported by Sam Altman of OpenAI, is launching a derivatives exchange in November. This exchange will be available for retail investors but not in the US due to regulatory restrictions.
Avalanche Summit in Buenos Aires
Source | olagg.io
Buenos Aires will host the first-ever Avalanche Summit in Latin America from October 16 to 18, featuring over 100 experts in crypto and blockchain.
Trump-Supported Crypto Token Sale
Eric, Donald and Donald Trump Jr. (Desiree Navarro/WireImage)
World Liberty Financial, a crypto project backed by Donald Trump and his family, will begin its token sale on October 15, just weeks before the US presidential election.
Dusk Mainnet Launch
Source | Dusk Network
Dusk, a privacy-focused blockchain, is preparing for the launch of its mainnet with significant updates expected on regulatory compliance and partnerships.
Puffer Finance TGE: What We Know
Source | Puffer Finance
One of the key events this week is the Token Generation Event (TGE) for Puffer Finance, a decentralized liquid restaking protocol that could reshape the Ethereum ecosystem. The TGE is scheduled for October 14, 2024, at 2:00 PM UTC.
- Puffer raised a total of $24.27 million and has a pre-valuation of $250 million.
- TVL on Puffer Finance stands at $1.35 billion, signaling strong interest.
Token Allocation:
- 40% to the ecosystem and community
- 26% to investors
- 20% to early contributors and advisors
- 7.5% for Airdrop Season 1
- 5.5% for Airdrop Season 2
Lumia
Source | orion.xyz
Orion Protocol transition to Lumia: Changing their narrative to RWA
- Token Swap Ratio: 1:1 (1 ORN = 1 LUMIA)
- New Token Supply: 238,888,888 LUMIA
- Supply Increase: 146,257,633 tokens
- Jupiter’s LFG Launchpad: Upcoming deBridge Token Launch
Source | debridge.finance
- Project: deBridge is a cross-chain protocol using a zero-TVL model, eliminating traditional liquidity pools.
- Security & Speed: The zero-TVL model enhances security and speeds up cross-chain transfers.
- Whitelist Token Sale: on Jupiter on October 15th, 2024, at 8:00 AM UTC.
- TGE: October 17th, 2024, 8 AM UTC.
- Key Figures:
- Over $315 million USD in total transactions.
- Generated over $383,000 USD in fees across multiple chains, including Arbitrum, Avalanche, Ethereum, Solana, and more(deBridge App).
- Over 113,000 transactions recorded across chains.
Conclusion
Big changes are coming, and smart investors are paying attention. Whether it’s deflation in China, slowing inflation in the US, or low inflation in Europe, these events will ripple across global markets—and crypto is no exception. However, please remember that this is not financial advice. It’s always important to Do Your Own Research (DYOR)—you can find more insights on blog.millionero.com
For those who are cautious but ready to act, you can explore spot trading on Millionero with low fees and a platform that’s easy to use. If you’re looking to trade futures, our futures platform offers the same low fees and simplicity. Stay alert, watch the trends, and remember: with volatility comes opportunity—just make sure you’re prepared!