Daily Market Update: May 8, 2023

May 8, 2023

BTC is currently trading around $27,900 and ETH around $1,850. Notable gainers in the last 24 hours are STX, FLR, and BGB. The global crypto market cap is ~$1.20T, down ~3.1% over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 48%.

Equity performance is mixed and crypto is down. Binance temporarily halted bitcoin withdrawals twice as it was unprepared for the chain’s spike in transaction fees over the weekend. Liquidations have contributed to the weakness, with about $100m of long crypto holdings liquidated in the last day. Speculative euphoria is deflating, with memecoins like Pepe down ~50% from its Friday peak. Turning to this week’s data releases, U.S. CPI on Wednesday and a BoE interest rate decision and U.S. PPI on Thursday are some of the week’s most notable events.

Notable news includes: Voyager Digital plans to liquidate assets and wind down operations; Bitcoin transaction fees temporarily surpassed block rewards as BRC-20 mania continued; Liechtenstein revealed it would begin accepting Bitcoin for payments to the state; Argentina’s central bank banned payment providers from offering crypto transactions; Stripe introduced a fiat-to-crypto onramp; Ethereum’s queue to exit staking has emptied in full while the queue to activate a new validator sits at ~2.5 weeks long; Aave DAO passed a proposal to deploy on the Metis layer 2 network; and, Deribit’s ETH volatility index hit a record low.

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

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