Daily Market Update: Dec 12, 2022

December 12, 2022

BTC is currently trading around $17,000 and ETH around $1,250. Notable gainers in the last 24 hours are TON, BSV, and STX. The global crypto market cap is ~$879B, down ~1.4% over the last day. DeFi Total Value Locked is ~$42b and BTC dominance is around 41%.

Global equities are mixed, with U.S. equities moving higher while Asian and European markets are down. Elsewhere, bonds are moving slightly higher while crypto is down. U.K. GDP came in slightly above expectation this morning, but overall it’s a slow day to start a loaded week of data releases. The week features a slew of speeches from global central bank officials, including Powell, Lagarde, and Bailey. U.S. and German CPI will come out tomorrow, with U.K. CPI following the day after. The week’s headline event is the Fed’s interest rate decision and the release of its updated dot plot on Wednesday. The ECB, BoE, and Swiss National Bank will follow with interest rate decisions on Thursday. Eurozone CPI and a set of PMI releases in the U.K. and Germany will conclude the week. Expectations are for the Fed to hike rates by a lower-than-trend 50 bps, and Fed Funds futures are pricing in ~77% chance of this currently with a ~23% chance of a surprise 75 bp hike.

Notable news includes: the U.S. Justice Department is reportedly weighing charges against Binance for possible money laundering and sanctions violations; The Block’s CEO resigned following evidence that a loan from Sam Bankman-Fried financed last year’s management buyout, sparking concerns that the research and news functions were not impartial; the SEC filed its first legal brief in the lawsuit put forth by Grayscale after having its GBTC ETF-conversion application rejected; FalconX revealed its FTX exposure represented ~18% of its unencumbered cash equivalents; Amber Group owes the troubled crypto lender Vauld’s CEO $130m; OFAC-compliant Ethereum blocks are dipping as more non-censoring relays come online; the Tron-backed USDD stablecoin lost its dollar peg and dipped below $0.97; OpenSea revealed plans to transfer control of its royalty enforcement tool to an industry collective; Starbucks rolled out beta testing on its new Polygon-powered NFT rewards program; shares of Bitcoin miner Argo were suspended in the U.S. and U.K. as many speculate a forthcoming bankruptcy announcement; Lodestar Finance was exploited in a flash loan attack; and, South Korean authorities claimed Do Kwon is in Serbia or recently left to a neighboring country.

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

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