Daily Market Update: July 19, 2023

July 19, 2023

BTC is currently trading around $30,300 and ETH around $1,900. Notable gainers in the last 24 hours are FLEX, BIT, and KAS. The global crypto market cap is ~$1.25T, up ~1.3% over the last day. DeFi Total Value Locked is ~$44b and BTC dominance is around 50%.

Risk assets are up broadly, led by UK markets after a better-than-expected inflation print led investors to pare back expectations for future BoE rate hikes. Both headline and core CPI in the UK were better than expected (headline 7.9% vs. 8.2% EST; core 6.9% vs. 7.1% EST), and Gilt yields fell sharply across the curve, with the decline in 2Y yields leading the pack down ~20bps. Equity markets are up broadly, but performance is similarly led by the UK’s FTSE 100. Conversely, the EU inflation picture wasn’t quite as rosy and was more mixed with headline CPI in line, while the core measure was worse than expected.

Notable news includes: a Nevada court ordered Prime Trust into a temporary receivership; Nasdaq halted plans to launch its crypto custody business in the US citing a shifting regulatory environment; SocGen’s Forge subsidiary became the first fully-licensed crypto provider in France; Polygon Labs proposed restructuring its governance process in its upcoming Polygon 2.0 roadmap, introducing an ecosystem council to push smart contract upgrades; FalconX and CF Benchmark partnered to provide regulated access to crypto derivative markets; Arkham’s token debuted at $0.75 after being sold for $0.05 on Binance Launchpad; Axelar launched its Interchain Token Service to enhance the interoperability of ERC-20 tokens across all Ethereum-compatible chains; BNB Chain burned nearly $500m worth of BNB in its latest quarterly burn; StarkWare announced the launch of Starknet appchains that leverage the Starknet Stack in competition with similar announcements recently from Optimism, Arbitrum, zkSync, and Polygon; OpenSea halted trading of staked-ether NFTs; Bitcoin ETPs realized a record monthly inflow of ~$757m; Polychain and Coinfund raised a combined ~$350m for new crypto funds; Litecoin’s halving is just ~13 days away; a wallet holding $116m of ETH purchased from Ethereum’s presale was transferred to Kraken after laying dormant for the past eight years; and, RFK Jr. pledged to exempt bitcoin profits from capital gains tax if elected president.

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

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