Daily Market Update: August 31, 2023

August 31, 2023

BTC is currently trading around $27,200 and ETH around $1,700.  Notable gainers in the last 24 hours are MKR, DYDX, and MIOTA.  The global crypto market cap is $1.13T, flat over the last day.  DeFi Total Value Locked is ~$39b and BTC dominance is around 50%.

Equity markets are mixed and crypto is flat as investors digest key economic data.  US PCE and core PCE rose 3.3% and 4.2%, respectively, over the last year in July, both accelerating from the prior month but inline with expectations.  In the EU, headline inflation increased by 5.3% in August and outpaced the +5.1% consensus, though core inflation fell 0.2 percentage points from the prior month.  Meanwhile, China’s factory activity shrunk for a fifth straight month in August.  Investors will now turn their attention to the US employment report due out tomorrow.

Notable crypto news includes: a US court dismissed a class action lawsuit against Uniswap, ruling that Uniswap cannot be held liable for damages caused by third parties misusing the protocol; the judge in the Uniswap case classified ETH as a commodity in her ruling; SEC Chair Gensler is set to testify before the Senate Banking Committee on Sept 12 and the House Financial Services Committee on Sept 27; German lawmaker and shepherd of the EU’s MiCA regulation will now lead new legislation underpinning a potential digital euro; China is readying a fresh digital yuan adoption push ahead of next month’s Asian Games; Arkham Intelligence reported that Robinhood holds the fifth-largest Ethereum wallet; X obtained payment licenses in several US states; Swift and Chainlink successfully conducted blockchain interoperability tests using tokenized assets with over ten banks; Coinbase partnered with PayPal to streamline crypto transactions for users in Germany and the UK; Binance announced that it will gradually cease support for BUSD products; the number of bitcoin on centralized exchanges fell to the lowest level since early 2018; Prada and Aura Blockchain Consortium launched a blockchain-based service to verify product authenticity; Bloomberg analysts raised their estimate of the probability that a spot bitcoin ETF is approved by year-end from 65% to 75%; The University of Cambridge revised the methodology for its Cambridge Bitcoin Electricity Consumption Index and lowered its estimate for network energy consumption by 14%; Kroll admitted that data stollen in its recent security breach regarding FTX bankruptcy claims was in fact sensitive information; music NFT marketplace LimeWire revealed a decentralized generative AI creator studio; Lufthansa airline launched an NFT loyalty program; and, a 1inch investment fund accumulated 10m worth of ETH.

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

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