Daily Market Update: Oct 5, 2022

October 5, 2022

BTC is currently trading around $20,000 and ETH around $1,350. Notable gainers in the last 24 hours are GMX, TKX, and HNT. The global crypto market cap is ~$994B, down ~0.3% over the last day. DeFi Total Value Locked is ~$72b and BTC dominance is around 42%.

Markets are reversing the hot start to the week as optimism around a Fed pivot waned. New Zealand’s central bank hiked interest rates by 50 bps and was generally hawkish, noting that more hikes would follow. Statements from Fed officials continue to skew hawkish despite concerned comments from the UN and IMF. Friday’s nonfarm payroll release will likely be a heavily weighted data point in the monetary policy conversation. Fed Funds futures are currently pricing in a 68% chance of a 75 bp hike and a 32% chance of a 50 bp hike for the November FOMC meeting. Lastly, OPEC+ is considering oil production cuts at today’s meeting, a move that could further exacerbate the inflationary backdrop. 

Notable news includes: the European Council passed MiCA, and European Parliament will vote on it on Oct. 10th; Valkyrie Funds entered the crypto SMA arena; Fidelity and Bitwise launched new crypto funds; Three Arrows Capital’s liquidators took possession of the Starry Night NFT wallet; Ubisoft and Take-Two backed Ethereum NFT game maker Horizon; VeeFriends toys are coming to Macy’s and Toys “R” Us; Ray Dalio relinquished control over Bridgewater; and, Dogecoin pumped as Elon Musk returned to the table and offered to close his $44b deal to acquire Twitter. 

Matt Kunke, Junior Strategist | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TelegramLinkedIn

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