Daily Market Update: July 12, 2023

July 12, 2023

BTC is currently trading around $30,700 and ETH around $1,900.  Notable gainers in the last 24 hours are CFX, STX, and BIT.  The global crypto market cap is $1.24T, up 0.9% over the last day.  DeFi Total Value Locked is ~$45b and BTC dominance is around 52%.

Global equity markets and crypto prices are generally higher while bond yields are lower after US inflation rose by a smaller than expected amount.  Headline inflation in June increased 3.0% over the last year, slightly below the +3.1% consensus and marking the lowest level since March 2021.  Core inflation, which excludes volatile food and energy prices, increased 4.8% over the last year, also bettering the consensus estimate of +5.0%.  The lower than expected inflation gives the Fed a bit more leeway to raise rates by a smaller amount or more slowly, and market implied probabilities for additional rate hikes have modestly come down in the wake of the report.

In notable legal/regulatory/country news: a BIS report stated that crypto has so far failed to benefit society and detailed alleged shortcomings; The European Securities and Markets Authority issued a set of detailed proposals under MiCA law on how crypto companies within the EU should be authorized; The European Banking Authority published a statement with clear and comprehensive non-binding guiding principles for stablecoin issuers ahead of MiCA; The Financial Services Commission of South Korea announced that domestic firms that hold or issue crypto will be required to disclose information about their transactions starting next year; The Russian Parliament passed digital ruble legislation that will now go to the upper chambers; The Bank of China began testing a new offline payment method linked to SIM cards for the digital yuan; The US Department of Justice pressed charges against a security engineer for laundering money in connection with the exploit of an unnamed Solana-based protocol in July 2022, marking the first time that the US government has brought charges in connection with a smart contract attack on a DEX; and, Coinbase and the SEC will meet in court on Thursday for a pre-motion hearing.

Elsewhere: exchange operator CBOE amended five spot bitcoin ETF applications with the SEC to include surveillance sharing agreements with Coinbase; Grayscale agreed to provide additional documentation related to GBTC to resolve a lawsuit from investment firm Fir Tree; the FTX claims portal became unavailable shortly after going live; Aptos is holding a vote on a major network upgrade that includes changes to fungible token standards, tokenomics, and backend services; and, Cosmos-based Osmosis introduced concentrated liquidity to its DEX.

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Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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