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Trading Desk Market Update: 1/27

January 27, 2022

BTC is currently trading around $36,700 and ETH around $2,450.  Notable gainers in the last 24 hours are TFUEL, THETA, and SAND.  The global crypto market cap is $1.75T, down 2.9% over the last day.  DeFi Total Value Locked is ~$195b and BTC dominance is around 42%.

Crypto and equity markets fell and Treasury yields increased after yesterday’s Federal Reserve press conference that was generally perceived as hawkish.  As expected, the Fed teed up a March rate hike and indicated that bond purchases will end in March.  And while it did not say when it would begin reducing its balance sheet, it did release a paper outlining principles around doing so.  During the press conference, Fed Chair Powell emphasized the economy’s strength, stated that inflation had likely gotten worse since the last meeting, and pledged to raise rates as needed.  Fed funds futures traders are now pricing in 4.4 hikes this year versus 4 prior to the meeting.  

In other news: Russia’s Ministry of Finance officially submitted a regulatory proposal to the government introducing a new crypto framework and in stark contrast to the central bank’s calls for a crypto ban; MoonPay is now offering a credit card checkout tool for NFT purchases; Reddit is testing out NFT profile pics; Diem is selling its technology to Silvergate Bank for $200m; and, Coinbase is reportedly close to listing Solana ecosystem tokens.

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