Morning Minute is a daily newsletter authored by Tyler Warner. The views and analysis presented are solely his and do not necessarily represent those of Decrypt. And check out our daily news show 'FOMO HOUR' for coverage of key stories and market movements.
Good morning!
Here are the highlights of today’s market:
- Major cryptocurrencies are experiencing gains following the FOMC's rate increase; Bitcoin is priced at $76.4k
- Alternative coins are soaring, with ZEC, NEAR, LIT, and VVV leading the way with double-digit growth
- The U.S. House is progressing the Strategic Bitcoin Reserve legislation
- Circle’s Arc chain launched with over $400 million in volume
- Robinhood Chain and Stonk eco leaders are also seeing a rebound alongside altcoins
📈 Crypto Market Recovers After Federal Reserve's First Rate Increase Since 2023
The Federal Reserve raised interest rates by 25 basis points on Wednesday, setting the target range at 3.75% to 4.00%. This marks the first rate hike in over three years and was passed unanimously. At the subsequent press conference, Kevin Warsh highlighted the economy's resilience and a robust labor market, but emphasized that inflation remains excessively high.
Following the announcement, the likelihood of two additional rate hikes by the end of 2026 surged to 40%, compared to just 10% a week prior. Stock markets reacted negatively, with the Dow Jones plummeting 600 points and the 10-year Treasury yield climbing to 5.02%, although stock futures are showing positive signs in pre-market trading.
In the crypto sphere, Bitcoin initially dipped to $75,700 but quickly rebounded to around $76,300. Ethereum and Solana also saw gains, trading at $2,430 and $100, respectively. Hyperliquid rose by 1% to $80.
However, the standout performers were alternative cryptocurrencies. Notable gains included a 12% rise for ZEC to $1,350, a 15% increase for NEAR, and 12% jumps for both LIT and VVV.
So, what does this suggest? The crypto market has absorbed its first rate hike in three years without significant distress, indicating underlying strength and prior adjustments. Despite facing recent challenges, including the failure of the Clarity Act, the market is not showing a downward trend in response to adverse news. Altcoins are demonstrating substantial resilience, hinting that the market may have passed its lowest point. Bears should take note…
🌎 Macro Crypto and Markets
- Major cryptocurrencies are showing positive trends after the FOMC's 25 bps rate hike; BTC is at $76.4k; ETH is up 1% at $2,440; SOL is up 3% at $100; HYPE is up 3% at $79.7; ZEC is up 12% at $1,360
- Leading altcoin movers include NEAR (+18%), LIT (+14%), and VVV (+12%)
- Oil decreased by 3% to $100; Gold fell by 0.4% to $4,370
- Stock futures are rising following the rate hike and previous selloff; DOW is up 0.8%, Nasdaq is up 1.1%
- The House Financial Services Committee passed the American Reserve Modernization Act with a vote of 28 to 21 along party lines, which will require the Treasury to establish a Strategic Bitcoin Reserve within 180 days and lock Bitcoin deposits for 20 years, without granting purchase authority
- The House Ways and Means Committee approved the Digital Asset Tax Certainty Act by a vote of 38 to 5 shortly after the Clarity Act failed, which will exempt network fees of $10 or less and extend wash-sale rules to cryptocurrencies, while also clarifying treatment for stablecoins, lending, mining, and staking
- SEC Chair Gary Gensler and CFTC Chair Rostin Behnam announced plans to draft regulations without Congressional input, after the Senate blocked the Clarity Act, with Behnam stating the CFTC is ready to move forward and Gensler advising investors to stay tuned
- Crypto VC firms invested $5.68 billion across 384 deals in Q2, reflecting a 31% increase from the previous quarter, although late-stage funding accounted for 78% of the total, and only five new funds were closed, marking the lowest since 2019
- The hackers responsible for the Revolut breach are demanding 6,000 XMR, equivalent to about $3 million, within 24 hours, and have threatened to sell data from at least 680 accounts identified through blockchain analysis
- Bitcoin Core 32 is undergoing final testing in preparation for an October release, which will include faster validation, fee modifications, and security enhancements
- Only 290 individuals globally hold $100 million or more in cryptocurrency, comprising 23 billionaires and 135,694 millionaires out of approximately 742 million total holders, according to Henley & Partners' Crypto Wealth Report 2026
- Bitcoin ETFs experienced $295M in net outflows on Wednesday; ETH ETFs also saw $224M in outflows
Meme Coin Tracker
- Meme coin leaders were mostly positive; DOGE remained stable, SHIB increased by 3%, PEPE by 4%, PENGU by 5%, TRUMP by 4%, and SPX fell by 1%
- Robinhood chain leaders showed mostly positive trends; Pons rose by 10% to $440M; AI increased by 3% to $282M; Cashcat surged by 29% to $200M; Musebook skyrocketed by 220%, Robin by 150%, ZZZ by 50%, and Wallet by 44% led the top movers
- Top movers on Solana were led by Paid (+200%), Eloncoin (+180%), and Ember (+50%); the Stonk eco saw a rally with Stonk rising by 25% to $180M, ZCAT by 36% to $140M, wifout skyrocketing by 500x to $4M, jubjub increasing by 400%, and Knots by 70%
💰 Token, Airdrop & Protocol Tracker
- Hyperliquid led on-chain protocols in daily revenue with $2.21M, followed by Pump with $1.68M, Stonkfun at 8th position with $665k, and Pons at 9th with $656k
- Robinhood Chain launchpads recorded only $400M in volume on Wednesday, its lowest since August 29th
- Circle’s Arc chain achieved over $400M in volume on its first day of operation
🚚 NFT Market Developments
- NFT leaders saw slight increases; Punks remained at 29.3 ETH, BAYC rose by 1% to 6.85 ETH, and Pudgy increased by 2% to 3.43 ETH
- Rekt Tradooor (+80%) and Stonkbrokers (+16%) were the top movers