Soft PPI Sends Crypto Higher. CPI Data Drops Today. 

Good morning. Bitcoin and crypto got a boost yesterday from some soft PPI data, and new CPI numbers will drop this morning. See our lead story for what it all means as we head towards next week’s FOMC meeting. Then, both our Trade of the Day and DEGEN Play of the Day are absolute monsters. Think twice before fading them. 

All of that, plus . . . 

• What Bitwise is saying about Solana. 
• A HYPE Spot + Staking ETF might hit the US and Europe soon. 
• Your Alpha Leak. 

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Chart of the Day

The US S&P 500 Index hit a fresh all time high yesterday, at approximately 6,550. The index edged into ATH territory soon after the release of softer than expected PPI data on Wednesday morning, before dropping a bit yesterday afternoon. 

Now we dive into the PPI mechanics in our lead story; but for now, just understand that our current situation is one where both gold and the US stock indices are at all time highs, precisely because the money printer is about to get flipped back on. However, Bitcoin is still 10% off its all time highs. 

Therefore, our contention is that between gold, the indices, and Bitcoin, the latter has the most asymmetric upside in this environment. 

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Trade of the Day

Solana (SOL) is your Trade of the Day. So long as prices are just above $221, you’re good to launch market long orders. 

So this setup looks pretty damn good. SOL is breaking north from a rising wedge consolidation pattern right now. Volumes are high enough to show that there’s some strength in the move. The RSI is rising, but not at overbought levels yet. And the MACD has confirmed a bullish crossover above the zero line. 

The technical take profit on this move is $270. When it’s go time, it’s go time. 

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Alpha Leak

• Ethena [ENA] will be bought in batches of $5M to $10M per day by StablecoinX over the next six to eight weeks. The planned purchase is supposed to make a serious dent in ENA’s available supply. 
• KITE AI [KITE] is a new, developing, “base layer for the agentic internet.” Meaning, it’s supposed to be a foundational platform for AI agents. And KITE AI has some serious investors. PayPal, Samsung, and HashKey, just to name a few. Keep your eye on this project and token, especially if you see the AI agent narrative swing back around. 
• Monad’s [MON] token generation event and official L1 launch should be happening soon (i.e. most likely in Q4). MON will be the native gas token for the Monad blockchain, the latter of which should feature 10K TPS with 1 second block times. 
• Solana’s [SOL] total value locked is at an all time high right now. It’s probably just a matter of time before the price catches up. 
• Virtuals Protocol [VIRTUALS] has launched over 11K AI agents that are extracting 5% transaction fees from every transaction they’re involved in. Then, those fees are getting sent back to VIRTUALS holders. That’s according to aixbt. 

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News Roundup

Soft PPI Sends Crypto Higher. CPI Data Drops Today. 

Soft Producer Price Index (PPI) data boosted the entire crypto market on Wednesday. So the August PPI dropped 0.1% MoM (vs. an expected 0.3% rise), with YoY growth at just 2.6% (vs. a 3.3% forecast). Core PPI, which excludes food and energy, fell 0.1% MoM (vs. an expected 0.3% rise), and the YoY came in at 2.8% (vs. a 3.5% forecast).

The market’s reaction to the data was instantaneous. Bitcoin ripped from $112.3K to $114.3K over a two hour period, and most other cryptos saw single digit percentage gains as well.

The Producer Price Index measures inflation at the producer, or wholesale, level. So if PPI data comes in lower than expected, that indicates that inflation is cooling, which means the Federal Reserve has more justification to cut rates. And this is why our assets got a small pump on this news. 

Now buckle up for more volatility today, because new Consumer Price Index (i.e. CPI) data will be released this morning. And it will all follow the same pattern and reasoning as outlined above. Numbers below expectations should send asset prices higher, while numbers above expectations should do the opposite. 

Finally, all of this information will be determinative in the next Federal Open Market Committee meeting, set for this next Wednesday, September 17th. After the release of this new PPI data, the market is betting that there’s a 92% and 8% chance of a 25 and 50 point basis cut, respectively. 

Bitwise Says Solana Will Probably Rip North  

We’ve been saying this in the newsletter for the past several months. Now, Bitwise’s CIO Matt Hougan is singing our same tune.

And the man’s thesis is simple. Upcoming SOL ETFs, plus corporate treasury purchases, plus Solana’s advanced tech (i.e. TPS and finality times), equals higher goes the price. We completely agree. 

But what’s especially interesting is that Hougan thinks SOL could be a position now, similar to when Bitcoin was at $40K and ETH was at $1,600. Meaning, Solana’s bullish tailwinds could ignite a 3X in price within a short matter of time. 

Now let’s dig into the details just a bit more. First, there’s seven ETF managers (Bitwise, Grayscale, Fidelity, VanEck, etc.) who have filed for spot SOL ETFs. The SEC should be ruling on these by Oct. 10th. Second, the corporate treasury bid is in full swing. The new kid on the block is Forward Industries [FORD], who just raised $1.65B from Galaxy Digital and others to stack and stake SOL. And third, Solana is undergoing a new upgrade now that should reduce transaction finality from current levels to 150 milliseconds, all while keeping fees at under a penny. 

VanEck to File Hyperliquid Spot + Staking ETF

VanEck is preparing to file a Hyperliquid spot + staking ETF in the US and in Europe. If approved, this would make HYPE the youngest token to receive an ETF. 

Hyperliquid has been one of the star breakouts in 2025. The L1 chain, powering an immensely popular perps exchange, has bested all other blockchains in revenue for the past four consecutive weeks. Hyperliquid has been in operation for about two years now. 

But back to VanEck, they see HYPE as perfect ETF material, because there’s big demand for the asset, but no spot token market available yet on major US exchanges (i.e. Coinbase, Kraken, etc). Additionally, VanEck says they’re considering HYPE buybacks, where the manager would allocate some of their net profits into purchasing additional HYPE tokens. 

And speaking of buybacks, this is one of the major price catalysts behind HYPE right now. In January 2025, the protocol started allocating a majority of its monthly revenues to purchasing and burning HYPE tokens. Therefore, HYPE’s price is directly correlated with user metrics on the exchange. 

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Degen Play of the Day

Hyperliquid is your DEGEN Play of the Day. And I know . . . I know . . . it’s definitely not the most DEGENY play that we’ve ever issued. But the trade setup is so good, it would be a real shame if we didn’t signal this. 

So technically speaking, this setup is almost identical to the SOL trade above. HYPE is breaking out of a rising wedge pattern on elevated volumes. The RSI isn’t at overbought levels yet, and we’ve got that bullish MACD crossover. 

Now, the technical take profit on this breakout is $70. So try your best to get orders filled at $55 or below. You’ll be entering into true DEGEN territory if you’re smashing market longs at $60 or above.

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Town Square

Win of the Day 

We’ve got another Win of the Day for you. This time, it’s a double! Check out the trades that both NorseCrypto and Crypto Lobsta executed over the last few days. Both are members of Lark’s Discord group. 

NorseCrypto jammed a 20X long on Gold, after the asset had broken above a multi-month symmetrical triangle. And Crypto Lobsta bought the SOL dip on 5X leverage, and held like a champ into some serious profits. 

Congratulations gentlemen to you both. And keep up the good work!

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Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.

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