Welcome to the Asia Pacific Morning Brief—your essential digest of overnight crypto developments shaping regional markets and global sentiment. Monday’s edition is last week’s wrap-up and this week’s forecast, brought to you by Paul Kim. Grab a green tea and watch this space.
The crypto market finally saw significant momentum last week. As of Sunday at 4:00 PM UTC, Bitcoin’s price had jumped 4.78%. Altcoins soared even higher, with ETH climbing 7.72% and SOL skyrocketing by 22.65%.
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Rising Rate Cut Hopes Drive Rally
The primary driver behind the recent surge in crypto and other risk assets is growing anticipation of US interest rate cuts. This expectation intensified after the August US non-farm payrolls (NFP) figures were released on September 5.
Following that report, markets priced in a 0.75 percentage point cut by the end of 2025 and 1.5 percentage points by September of the following year.
However, the Federal Reserve has hesitated to cut rates unilaterally, as consumer inflation remains stubbornly high, holding steady at around 3%—well above its target.
The market’s recent surge was primarily triggered by encouraging inflation data. On Wednesday, the August US Producer Price Index (PPI) was announced to have dropped by 0.1% month-over-month, falling short of the anticipated 0.3% increase. This marked the first decline in producer prices in four months.
A closer look at the data revealed a notable detail: corporate profit margins in wholesale and retail trade declined, particularly for machinery and vehicles. This suggests that companies absorb some of the cost increases rather than pass them entirely to consumers. Experts interpreted this as a sign that inflationary pressures are easing more than expected.
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Author: Paul Kim
