Daily Market Update: Jan 26, 2023

January 26, 2023

BTC is currently trading around $23,200 and ETH around $1,600. Notable gainers in the last 24 hours are FTM, APT, and XEC. The global crypto market cap is ~$1.09T, up ~2.7% over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 44%.

Risk assets are reversing yesterday’s weakness behind positive U.S. growth data. U.S. Q4 GDP beat expectations due to strong consumer spending in the first part of the quarter, coming in at 2.9% versus the 2.6% expected. While growth still decelerated from 3.2% in Q3, the release adds some credence to the potential of a soft landing. New unemployment claims also came in better than expected. Global bond yields are modestly higher, equities are up as much as 1.25%, and crypto is up 2.7%. 

On the monetary policy front, the Bank of Canada hiked rates by a consensus 25 bps yesterday, but it became the first major central bank to signal a pause to the hiking cycle, stating it expects this to be “the final rate hike of the cycle.” Next week is particularly busy for interest rate policy, with the Fed, ECB, and BoE on the docket. While markets are pricing a 25 bp hike from the Fed as a near certainty, the path forward at the March and May meetings remains far less certain. 

Notable news includes: crypto options exchange Deribit is reportedly planning a move to Dubai; Mango Markets is suing its exploiter for $47m in damages; data analytics firm Arkham Intelligence revealed it would add support for Polygon in Q1; Alchemy released a transaction simulation product on Ethereum, Polygon, and Arbitrum; Optimism’s on-chain activity dropped after the end of its NFT incentive program; Lido proposed a plan for supporting staked ETH withdrawals; SushiSwap revealed plans to launch a perpetuals DEX on the Sei Network; dYdX rallied ~18% after a token unlock was pushed back ~10 months; Robinhood’s Twitter was hacked and used to promote a fraudulent crypto project; Moonbirds creator Kevin Rose lost more than $1m in NFTs after falling victim to a phishing scam; Doodles announced its new NFT project Doodles 2 is coming to the Flow blockchain at the end of the month; Pudgy Penguins announced that its using Layer Zero to launch its cross-chain bridge; Nike’s web3 platform .SWOOSH will reward creators for virtual sneaker design; Injective launched a $150m ecosystem fund to accelerate interoperable infrastructure and DeFi adoption in the Cosmos ecosystem with backing from Jump and Pantera; and, Celsius’s bankruptcy judge denied another motion from a Celsius claimant arguing that her interest-bearing ‘Earn’ assets were not property of the bankruptcy estate. 

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

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