Daily Market Update: May 17, 2023

May 17, 2023

BTC is currently trading around $26,700 and ETH around $1,800. Notable gainers in the last 24 hours are AXS, MANA, and OP. The global crypto market cap is ~$1.17T, down ~0.7% over the last day. DeFi Total Value Locked is ~$46b and BTC dominance is around 48%.

Equities are slightly positive on the day as political leaders on both sides of the aisle struck a cautiously optimistic tone around the debt ceiling, with House Speaker McCarthy stating he doesn’t anticipate a default. On the data front, Eurozone inflation printed at the expected 7% level. Elsewhere, the correlation between crypto and equities continues to sit at local lows (~0.15 trailing 3M correlation between BTC/ETH and the S&P 500), and crypto is down slightly over the last day despite the modest equity strength.

Notable news includes: Ledger controversially introduced a subscription service dubbed Ledger Recover that would send encrypted fragments of a users seed phrase to different external entities for recovery purposes, but the introduction raised various security concerns around the firm’s ability to export the seed; the UK Treasury Committee urged the government to regulate crypto as gambling; Ripple bought Swiss-based Metaco fro $250m as it expands into crypto custody; Anchorage enabled DeFi voting for its custody clients; Lightning Labs released a ‘better’ version of BRC-20s on testnet under the Taproot Assets moniker; Sui fixed a critical bug that reportedly put billions at risk; Bancor DAO was hit with a class-action lawsuit over its impermanent loss protection promises; Near Protocol is collaborating with Wormhole to create light client solutions for cross-chain transfers using zero-knowledge proofs; the Axie token jumped ~12% after its game was listed on the Apple App Store in various countries; and, Coinbase temporarily paused Ethereum staking withdrawals citing a minor bug.

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

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