Daily Market Update: Nov 7, 2022

November 7, 2022

BTC is currently trading around $20,700 and ETH around $1,600. Notable gainers in the last 24 hours are MATIC, SNX, and DASH. The global crypto market cap is ~$1.07T, down ~2.5% over the last day. DeFi Total Value Locked is ~$55b and BTC dominance is around 40%.

Global equities are mixed this morning, while crypto is moving lower. Tuesday’s US midterm elections are at the forefront this week. Republicans are expected to gain control of the House, but the Senate race is much tighter, and FiveThirtyEight’s model forecasts a slight Republican edge (54% vs. 46%). The same model forecasts a ~53% chance of a Republican sweep, a ~30% chance of a red House and a blue Senate, and a ~16% chance of a Democrat sweep. Thursday’s US CPI report is the week’s most prominent data release.

It was a dramatic weekend in crypto markets as Alameda insolvency rumors spread, and Binance announced it would be liquidating its remaining exposure to Alameda-affiliated exchange FTX’s token, FTT. Surprisingly, Alameda’s CEO replied on Twitter that it would acquire Binance’s full block at $22/token, but Binance’s execution plans for the sale remain to be seen. It’s also been a busy start to the week for big tech headlines. Apple announced that Covid restrictions in China would impact deliveries of their top-of-the-line iPhone models. Meta is reportedly planning significant layoffs this week, and Twitter is reportedly asking dozens of ‘mistakenly’ laid off employees to return to the company.

Notable news includes: the Federal Reserve Bank of NY released the results of its CBDC research with spot FX trades settling in less than ten seconds on average; Google Cloud announced the expansion of its Blockchain Node Engine business to Solana; JPMorgan executed its first DeFi trade on a public blockchain with the help of the Monetary Authority of Singapore; the SEC issued subpoenas to some HEX influencers; Huobi issued a statement saying pNetwork’s actions on pgala were malicious and not a white hat exploit; ~3,500 pre-production Solana phones are expected to ship to developers in December before a 2023 rollout; Helium plans to prioritize free 5G network trials to early Solana phone users; BitDAO is voting on a proposal to earn yield on a portion of its $2.1b treasury; Solana NFT sales surged on the y00ts reveal; Arca shuttered its TerraUSD-exposed fund; and, Amber Group reduced its valuation to $3b, seeking to raise an additional $100m.

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

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