Daily Market Update: May 3, 2023

May 3, 2023

BTC is currently trading around $28,300 and ETH around $1,850. Notable gainers in the last 24 hours are STX, RPL, and SNX. The global crypto market cap is ~$1.21T, flat over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 48%.

Risk sentiment waned yesterday during the late morning as banking sector anxiety soured traditional risk markets. Regional banks had an outsized contribution to the market’s downward plunge, and the trading of several bank stocks was halted due to the excess volatility. Yesterday’s flight to quality caused treasury yields to plummet, offsetting Monday’s rise and providing a tailwind for crypto. Sentiment has seemingly stabilized based on pre-market data, but we acknowledge this could turn quickly as several major releases are coming throughout the rest of the week. Most prominently, the Fed is expected to hike rates by 25 bps this afternoon, and the ECB is expected to execute a similarly sized hike tomorrow. ADP employment data came in hot this morning as job growth doubled expectations, but the headline BLS nonfarm payroll data will follow on Friday.

Notable news includes: the new Sui layer 1 blockchain launched its mainnet; Coinbase launched its international derivatives exchange providing institutional users with access to BTC & ETH perps with up to 5x leverage; Gemini also launched an international derivatives platform for retail and institutional users, providing access to BTC perps with up to 100x leverage and revealing plans to add ETH shortly; Sports Illustrated launched a Polygon-based NFT ticketing platform; Bitcoin volumes plummeted in April as Binance removed zero-fee BTC trading for all stablecoin crosses except TUSD; Blur NFT lending surpassed $16m in loans during its first day; Bitcoin miner Bitdeer partnered with Bhutan’s stated-owned investment company DHI to build a ~$500m carbon-free mining operation; Bitcoin Ordinals surged to ~3m inscriptions, and BRC-20 token transactions tokens temporarily comprised more than half of all Bitcoin transactions; Balaji Srinivasan paid out his short term bet that bitcoin would reach $1m, admitting that he spent the money to “send a provably costly signal that there’s something wrong with the economy”; PEPE soared to more than $500m in market cap in a meme-fueled rally; and, Celsius is looking to combine its US and UK entities as new court filings allege the distinctions were a “sham”.

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

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