Daily Market Update: Dec 20, 2022

December 20, 2022

BTC is currently trading around $16,900 and ETH around $1,200. Notable gainers in the last 24 hours are OKT, OKB, and IMX. The global crypto market cap is ~$853B, up ~1.4% over the last day. DeFi Total Value Locked is ~$40b and BTC dominance is around 42%.

Risk assets are mixed, while bond yields are rising globally. The Bank of Japan (BoJ) shocked markets yesterday evening as it eased its yield curve control program, doubling the cap on its 10Y bond yield from 25 bps to 50 bps. The BoJ positioned the move as making their path of easing more sustainable. Still, markets widely interpreted the move as a step towards BoJ tightening after Governor Kuroda’s term ends in April next year. The 10Y JGB yield jumped from ~25 bps to ~43 bps, and the Japanese yen rallied meaningfully against other currencies in response. 

Notable news includes: The Central African Republic postponed its Sango Coin listing; Bitcoin miner Greenidge reached a debt restructuring deal with NYDIG; BlockFi petitioned a U.S. court to allow customers to withdraw funds that sit in their BlockFi wallets; Visa signaled its increased commitment to crypto research, authoring a paper using Ethereum Account Abstraction and StarkNet to support auto payments for self-custodial crypto wallets; Silvergate continued to slide after a lawsuit accused it of playing an ‘integral’ role in FTX’s fraud; BitDAO is mulling a $100m token buyback; BUSD balances on exchanges are down ~$6b over the past 30 days; Sushi DAO voted to direct all fees generated by the SushSwap DEX to the protocol’s treasury, a vote that was effectively decided by two large wallets; Axelar launched a $60m startup ecosystem program; FTX is now seeking the ‘prompt return’ of SBF’s political donations; Elon Musk is actively searching for a new Twitter CEO according to reports; and, Alameda gave a $400m loan to Modulo Capital, a relatively unknown firm founded by ex Jane Street traders operating out of the same luxury Bahamian condo community. 

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

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