Daily Market Update: May 5, 2023

May 5, 2023

BTC is currently trading around $29,200 and ETH around $1,950. Notable gainers in the last 24 hours are PEPE, FLOKI, and BIT. The global crypto market cap is ~$1.25T, up ~1.5% over the last day. DeFi Total Value Locked is ~$49b and BTC dominance is around 48%.

Negative sentiment has faded this morning, with equities and crypto both moving higher alongside a sharp rise in bond yields. Strong earnings from Apple is supporting the stock market, with the world’s most valuable company up ~4.5% as iPhone demand remained resilient. Regional banks also partially offset yesterday’s losses, bouncing off oversold levels behind analyst upgrades. The rise in interest rates is stemming from a hotter-than-expected nonfarm payrolls release, confirming the extremely tight ADP labor release earlier in the week. Additionally, unemployment came in tighter than expected, falling to 3.4% versus an expected rise to 3.6%. While still unexpected at this point, these releases increase the chance that Powell could hike again in July.

Notable news includes: Coinbase surged ~12.5% on earnings; The House Financial Services and Agriculture subcommittees intend to unpack digital assets regulation during a hearing next week; BNP Paribas will link digital yuan wallets to client bank accounts to enable convenient CBDC use; SushiSwap rolled out v3 liquidity pools on 13 chains; Curve will redeploy crvUSD on mainnet after finding a bug that prevented veCRV holders from earnings rewards in crvUSD pools; Jack Dorsey’s Block reported $2.2b in Bitcoin revenue during Q1 2023; and, Pepe’s climb continued, breaching a $1.2b market cap as several CEXs listed Pepe perps.

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

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