Barclays Upgrades Coinbase and Robinhood
Barclays, the British banking giant, has raised its rating for both Coinbase (COIN) and Robinhood (HOOD) from underweight to equal weight. This upgrade reflects the bank's view that both companies have significantly matured their business models, thanks to product expansion and improved financial prospects.
Analyst Benjamin Budish noted that Coinbase, in particular, stands to benefit from a more favorable regulatory environment. This shift is driven by both major U.S. presidential candidates adopting increasingly friendly stances toward the digital asset industry, alongside the approval of multiple spot cryptocurrency exchange-traded funds (ETFs).
Barclays stated: "The factors that drove our underweight rating are gradually diminishing, and we now see a more balanced risk/reward profile for both stocks."
Conflicting Reports on Total Crypto Market Cap
According to data from CoinMarketCap (CMC), the total market capitalization of cryptocurrencies has fallen below $2 trillion, currently standing at approximately $1.92 trillion. This represents a 24-hour decline of 2.5%.
However, data from CoinGecko presents a different picture, reporting the total crypto market cap at about $2.007 trillion, with a 24-hour decrease of 5.2%. This discrepancy highlights the importance of using multiple data sources for accurate market analysis.
Current Market Prices
Here’s a look at the latest prices for major cryptocurrencies at the time of writing, according to CoinGecko:
- BTC: $53,874.16, with a 24-hour change of -4.2%
- ETH: $2,226.37, with a 24-hour change of -6.3%
- BNB: $486.09, with a 24-hour change of -3.4%
- SOL: $124.74, with a 24-hour change of -3.6%
- DOGE: $0.09189, with a 24-hour change of -6.8%
- XRP: $0.5226, with a 24-hour change of -3.6%
Policy and Regulatory Updates
WisdomTree Withdraws Ethereum Trust Filing
Asset management firm WisdomTree has formally requested to withdraw its S-1 registration statement for a spot Ethereum trust, which was initially filed with the U.S. Securities and Exchange Commission (SEC) in May 2021. The company confirmed in a September 6 filing that no securities were or will be issued under this registration.
While WisdomTree acknowledged that fees paid to the SEC for the filing are non-refundable, it has requested that the amount be credited for "future use."
SEC Ordered to Provide Documents in Coinbase Case
A New York judge has partially granted a motion from cryptocurrency exchange Coinbase, compelling the SEC to produce certain documents related to its ongoing case. However, the judge denied Coinbase's request to subpoena SEC Chairman Gary Gensler.
U.S. District Judge Katherine Polk Failla stated the court's decision was based "on the reasons stated on the record during the September 5, 2024, telephone conference." Coinbase had sought documents related to the tokens mentioned in the SEC's complaint, records from the SEC's review of its 2021 public listing, and statements made by Chairman Gensler during his tenure.
Blockchain Application Developments
ZKsync Governance Prepares for Mainnet Launch
ZK Nation has announced that the ZKsync governance contracts are ready for deployment on the mainnet after weeks of extensive testing. This milestone is crucial for the protocol's full decentralization and community-led management.
Solana Foundation Seeks Proposals for Data Tools
The Solana Foundation has issued a Request for Proposals (RFP) to advance the development of open-source data tools on its network. With a total funding pool of $160,000, the initiative includes two tracks:
- Solana Indexer Tools: $100,000 in funding for building end-to-end open-source infrastructure to help developers access real-time and historical data from Solana programs and accounts.
- Solana Discriminator Directory: $60,000 in funding to create an open-source database of discriminators, enabling developers to interact with unknown contract deployments and parse instructions.
Proposals are due by October 4, 2024, and aim to significantly improve the developer experience on the Solana blockchain.
Ethereum Social Graph Protocol Launches on Testnet
The Ethereum social graph protocol, efp.eth, is now live on testnet and open to all users. This protocol allows users to log in with their Ethereum wallets to follow others, block wallets, and check their ranking on a leaderboard.
Key features include using EFP List NFTs to create and manage follow lists, integrating data from ENS records to display profile information, and allowing users to import their follow lists from Farcaster and Lens Protocol. Actions taken during this test phase will not carry over to the mainnet, and users can claim a Beta Tester POAP NFT for participating.
Cryptocurrency Adoption and Movement
French Supermarket Accepts Bitcoin Payments
A Carrefour Express store in Rouen, France, has become the first supermarket in the country to accept Bitcoin payments. Customers can pay via the Lightning Network using the Bridge Wallet application from the Swiss platform Mt Pelerin.
On-Chain Political Donations on Base
Jesse Pollak, creator of the Base blockchain, announced that three current or potential members of the U.S. Congress are now accepting on-chain donations through the Base network this week.
James Fickel Adjusts ETH/BTC Position
James Fickel, a known bull on the ETH/BTC exchange rate, sold 3,000 ETH for 124 WBTC to repay loans following recent market dips. On-chain data shows his prominent ETH/BTC long position has been significantly reduced from its peak in late May.
Blur Founder Reflects on Bear Market Building
Pacman, the founder of Blur and Blast, noted that the current on-chain ecosystem is far healthier than during the 2019 bear market. He highlighted the presence of active users in DeFi, perpetual DEXs, NFTs, and yield-bearing stablecoins today.
He stated that while short-term price predictions are difficult, new category leaders almost always emerge from bear markets, making these periods prime for building and opportunity. 👉 Explore more strategies for navigating market cycles
Key Economic Trends
U.S. Stock Indices Post Significant Weekly Losses
Major U.S. stock indices closed the week sharply lower, marking their worst weekly performances in over a year. The Nasdaq fell 2.55%, accumulating a 5.77% weekly loss—its largest since January 2022. The S&P 500 dropped 1.73% (down 4.25% for the week), and the Dow Jones declined 1.01% (down 2.93% for the week). Both the S&P 500 and Dow recorded their largest weekly drops since March 2023.
The Philadelphia Semiconductor Index fell 4.52%, finishing the week down 12.22%—its worst week since 2020. Major tech stocks were mostly lower, with Tesla down over 8%, and Google and Nvidia falling more than 4%. Crypto-related stocks like Coinbase fell nearly 8%, and MicroStrategy dropped over 4%.
Former Treasury Secretary on Fed Rate Cuts
Former U.S. Treasury Secretary Lawrence Summers suggested that a softening labor market brings the Federal Reserve closer to a potential 50-basis-point rate cut. He noted that while the August jobs report wasn't exceptionally weak, it doesn't assure economic health.
Summers said the probability of a 25 or 50 basis point cut in September appears more balanced than it did a month or two ago. He emphasized that the initial move's size is less important than the Fed's ongoing assessment of economic data, which will guide future policy adjustments.
Frequently Asked Questions
What caused Barclays to upgrade Coinbase and Robinhood?
Barclays upgraded both companies due to their significantly matured business models, which include product expansion and a brighter financial outlook. A more favorable regulatory environment, influenced by supportive political stances and ETF approvals, also played a key role.
Why is there a difference between CoinMarketCap and CoinGecko data?
Different data aggregators may use slightly varying methodologies, include different sets of cryptocurrencies in their total market cap calculation, or update their prices at different intervals, leading to occasional discrepancies.
What is a reverse futures contract?
A reverse futures contract is a financial arrangement where the seller agrees to pay the buyer the difference between an agreed-upon price and the current market price at the contract's expiration. Unlike traditional futures, the seller benefits if the price decreases. For example, going long on a BTC/USD reverse futures contract equates to shorting the U.S. dollar.
How can I start accepting cryptocurrency payments for my business?
Businesses can begin accepting crypto payments by integrating payment processors that support digital assets. These processors often handle the conversion to fiat currency automatically, mitigating volatility risk. 👉 View real-time tools for merchant adoption
Is now a good time to invest in cryptocurrency during a market dip?
Market dips can present opportunities, but they also come with high volatility and risk. It's crucial to conduct thorough research, understand the projects you invest in, and never invest more than you can afford to lose. A long-term perspective and diversified portfolio are generally recommended strategies.
What does the withdrawal of WisdomTree's Ethereum ETF filing signify?
While a single withdrawal does not define the entire market, it may reflect specific regulatory challenges or a strategic shift by the asset manager regarding digital asset products. It does not necessarily indicate a broader trend for other ETF applicants.