Daily Market Update: July 27, 2023

July 27, 2023

BTC is currently trading around $29,400 and ETH around $1,850. Notable gainers in the last 24 hours are XDC, XLM, and PEPE. The global crypto market cap is ~$1.23T, up ~0.8% over the last day. DeFi Total Value Locked is ~$43b and BTC dominance is around 50%.

Equities are rallying sharply, led by Tech and European markets, and bonds are mixed across region. Both the Fed and ECB unanimously hiked interest rates by 25 bps as markets expected, and both central banks unsurprisingly pointed towards data dependency in determining whether another hike or pause would follow. The interest rate response is mixed so far this morning, and US yields are meaningfully higher while yields across Europe are falling. The US interest rate move stems from this morning’s stronger-than-expected preliminary Q2 GDP release, which came in at 2.4%, much hotter than the 1.8% expected, pointing to the potential need for rates to keep rising to prevent overheating. On the opposite end of the spectrum, a weakening near-term outlook in Europe and a late comment from President Lagarde’s press conference stating “[she] wouldn’t say at this time that we have more ground to cover” have decreased market expectations for another 25 bp hike from the ECB in September. More monetary developments will follow today and tomorrow with the BoJ’s policy meeting and US Core PCE.

On the earnings front, Meta is helping to bolster the broader market and big tech specifically after gaining ~7% on earnings. The release noted its TikTok competing short-form video product dubbed Reels is helping to draw increased ad spend.

Notable news includes: The House Financial Services Committee advanced a set of crypto bills for the first time yesterday on their own merits that were not included in broader legislation; Canada’s financial regulator introduced new draft guidelines on the regulatory capital treatment of crypto-asset exposure for federally regulated deposit-taking institutions and insurers; MakerDAO’s founder Rune Christensen is proposing an increase in the Dai Savings Rate from 3.19% to 8% in an attempt to incentivize growth; the Sui Foundation terminated its relationship with the MovEx DEX alleging it breached their contract in trading locked or restricted tokens; traders redeemed ~$12.3m of Rocket Pool’s rETH in the largest one day burn on record; Avalanche revealed a new $50m initiative supporting Avalanche-based tokenized assets; Palm Network revealed plans to rollout a Polygon Supernet chain next week; Securitize issued tokenized securities in Europe representing an equity interest in a Spanish REIT; Ethereum layer 2 storage rollup EthStorage reached a $100m valuation in its seed funding round; presidential candidate RFK Jr. revealed purchasing two bitcoin for each of his seven children; and, the DoJ revealed that it does not intend to proceed with a campaign finance charge against FTX founder SBF.

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

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