Daily Market Update: Jan 5, 2023

January 5, 2023

BTC is currently trading around $16,850 and ETH around $1,250.  Notable gainers in the last 24 hours are XEC, CHZ, and ETHW.  The global crypto market cap is $853b, down 0.1% over the last day.  DeFi Total Value Locked is ~$40b and BTC dominance is around 42%.

Equities are mixed, rates are higher, and crypto is flat after a strong US private payrolls report that some are interpreting as suggestive of more hawkish Fed policy.  Yesterday’s FOMC meeting minutes were unsurprising, as officials stated that the Fed will remain data dependent/flexible and stressed the importance of maintaining a restrictive policy stance until significant further progress is made on inflation.  Attention now turns to tomorrow’s euro area inflation and US employment reports.

Notable legal/regulatory news includes: the US SEC filed a “limited objection” to Binance.US’s proposed acquisition of bankrupt Voyager Digital due to a lack of necessary information; the US Justice Department seized $450m in Robinhood shares from FTX; a US bankruptcy judge ruled that digital assets in Celsius’s Earn program belong to the company’s estate rather than individual users; the New York Department of Financial Services reached a $100m settlement with Coinbase for lapses in Coinbase’s compliance systems; US regulators charged six individuals and two companies tied to a crypto investment scheme that raised more than $45m via sales of unregistered securities; and, a judge issued a detention order for the recently-arrested Mango Markets attacker Avraham Eisenberg.

Other notable news includes: a Hong Kong lawmaker proposed issuing a CBDC in the form of a government-backed stablecoin; crypto bank Silvergate cut 40% of staff and sold securities at a loss after experiencing a 68% decline in crypto deposits; beleaguered crypto prime broker Genesis penned a letter to clients asking for patience as it sorts out its financial situation; tech giant LG Electronics announced a partnership with Oorbit and Pixelynx to bring interoperable metaverse platforms to TVs; inflows into crypto products totaled $433m in 2022 and were down 95% from 2021, per CoinShares; Animoca Brands lowered its fundraising target for a web3 investment fund from $2b to $1b; sports memorabilia firm Fanatics announced the sale of its 60% stake in sports-focused NFT company Candy Digital; Ethereum layer-2 scaling platform StarkNet overhauled its Cairo coding language to drive adoption; DeFiLlama’s new DEX aggregator passed Metamask and Coinbase volume over the past 24 hours; and, a hacker put the private information of an additional 200m more Twitter users up for sale on a hacker forum.

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

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