Daily Market Update: Mar 8, 2023

March 8, 2023

BTC is currently trading around $22,000 and ETH around $1,550. Notable gainers in the last 24 hours are BONE, SHIB, and XRP. The global crypto market cap is ~$1.05T, down ~1.1% over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 44%.

Yesterday’s hawkish congressional testimony from Fed Chair Powell roiled equity markets, yet crypto was notably quite resilient. The testimony acknowledged the recent slew of stronger-than-anticipated economic data, noting that peak interest rates in this hiking cycle will likely be higher than previously expected as a result. Powell also confirmed that re-accelerating the pace of hikes is on the table, and market expectations for future hikes have shifted massively, with Fed Funds futures now pricing a 72% chance of a 50 bp hike at the March FOMC meeting, an increase from less than 30% last week. 2Y-10Y yield curve spread has reached its steepest inversion since the 1980s in response (-103 bps). Markets are little changed so far this morning as day two of Powell’s testimony just began at 10 am EST.

Notable news includes: a bankruptcy judge ruled against the SEC, allowing Voyager Digital to sell more than $1b of assets to Binance.US; Silvergate is reportedly in talks with the FDIC on ways to avoid a shutdown; Binance claimed its highest ever market share despite the recent regulatory challenges with BUSD; Bitstamp US partnered with Prove Identity to offer quick and document-free onboarding; Nansen unveiled its latest product Query that provides programmable access to blockchain datasets; ENS announced it would enable subdomains by wrapping existing ENS domains into an ERC1155 token; MakerDAO proposed an additional $750m U.S. Treasury purchase; Binance’s NFT marketplace added support for the Polygon network; eSports gaming giant TSM entered into a gaming partnership with Avalanche; Block is seeking community input on its Bitcoin mining project; Canadian crypto miner Pow.re landed a 100MW hydroelectric facility contract in Paraguay; and, a white hat hacker was able to exploit a price oracle glitch to borrow ~$1.6m on Tender.fi with only ~$70 of collateral posted, but the funds were returned and a $97k bug bounty was collected in the process.

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

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