BTC is currently trading around $42,600 and ETH around $2,300. Notable gainers in the last 24 hours are BONK, WOO, and HNT. The global crypto market cap is ~$1.69T, up 3.2% over the last day. DeFi Total Value Locked is ~$52b and BTC dominance is around 53%.
Asset prices are sharply higher across the board in response to yesterday’s dovish Fed meeting. As expected, the Fed kept interest rates unchanged at its 5.25% to 5.5% target, but the Fed’s updated dot plot indicated the median Fed member expects 75 bps of rate cuts next year, 50 bps more than last projected in September. The dot plot also showed that most Fed members anticipate a faster than previously anticipated reduction of inflation, with core PCE falling to 2.4% by the end of 2024. Equities gained over a percent yesterday and are extending their gains again this morning. Duration rallied as the 10Y yield slipped to 3.95%, down from 5% less than two months ago. And crypto markets gained as well, with bitcoin rallying 2.8% in the hours following the meeting.
Beyond the positive macro backdrop, crypto markets reversed course this morning and returned a subset of yesterday’s gains after a critical library maintained by Ledger and heavily relied upon by many dapps was compromised and replaced with a drainer. Crypto users were advised to not interact with any dapps as details emerged, but the issue has since been contained.
Notable news includes: Argentina President Milei announced a drastic 50% devaluation of the peso in a large scale package of economic reforms attempting to revive the fiscally troubled nation; The Basel Committee suggested introducing maturity limits for stablecoin reserves; Worldcoin launched World ID 2.0, enabling applications to authenticate humanity without leaking personal data; Cronos announced a forthcoming L2 chain built leveraging Matter Labs’ tech stack (zkSync); BONK spiked 40% after being listed on Coinbase; and, SEC Chair Gensler alluded to forthcoming Bitcoin ETF approval, stating the agency will respond to applications based on how courts interpret their authorities, referring to its loss against Grayscale in court.
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Authors:
Matt Kunke, Research Analyst | Twitter, Telegram, LinkedIn
Brian Rudick, Senior Strategist | Twitter, Telegram, LinkedIn
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