Daily Market Update: Apr 5, 2023

April 5, 2023

BTC is currently trading around $28,400 and ETH around $1,900. Notable gainers in the last 24 hours are KLAY, CSPR, and GMX. The global crypto market cap is ~$1.25T, up ~1.1% over the last day. DeFi Total Value Locked is ~$51b and BTC dominance is around 47%.

Crypto’s recently realized low correlation to equities continued yesterday as traditional markets were off slightly despite a crypto rally. ETH led the charge forward, outdoing BTC in a deviation from the recent trend, perhaps due to the increased attention ahead of its upcoming Shapella hard fork. On the monetary policy front, New Zealand hiked rates by a higher-than-expected 50 bps while Australia kept rates flat. Investors are roughly split on the Fed’s path next month, and Fed Funds futures currently show a slightly higher chance of a Fed pause than a 25 bp hike. ADP jobs data came in weaker than expected this morning, which may add credence to a pause if the jobs picture weakens, but the official BLS nonfarm payroll figures will add more clarity here on Friday. Cleveland Fed President Loretta Mester reiterated yesterday that she believes rates need to be “somewhat further restrictive this year, with the Fed Funds rate moving above 5% and the real Fund Funds rate staying in positive territory for some time.”

Notable news includes: Tether reportedly had a pathway to the U.S. banking system via Signature’s Signet and its Bahamian partner Capital Union Bank;  Google Cloud revealed it would offer workshops and cloud computing services for Celo builders; ex-Genesis CEO Michael Moro took the top job at the derivatives exchange startup Ankex; Manifold Finance revealed plans to launch an omnichain liquid staking derivatives protocol using LayerZero; Aave is evaluating a deployment on BNB Chain, Starknet, and Polygon zkEVM; LayerZero was valued at $3b in its latest Series B round; Proof of Attendance Protocol (POAP) will begin charging fees for commercial clients; OpenSea launched an advanced NFT marketplace aggregator called OpenSea Pro; Trump NFT sales jumped ~450% after the ex-president’s arraignment; and, Elon Musk’s DOGE hype drew attention to a mysterious wallet that once held $24b worth DOGE.

Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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