Daily Market Update: Oct 14, 2022

October 14, 2022

BTC is currently trading around $19,700 and ETH around $1,350. Notable gainers in the last 24 hours are ENS, OSMO, and EVMOS. The global crypto market cap is ~$981B, up ~6.5% over the last day. DeFi Total Value Locked is ~$70b and BTC dominance is around 42%.

Yesterday’s U.S. CPI release came in hotter than expected and pushed down equities temporarily before a sharp upward reversal. Many have theorized that the unwinding of hedges and short positions from bearishly positioned traders drove the strong upward move. Fed Funds futures moved materially on the inflation release, and markets now expect back-to-back 75 bp hikes at the November and December FOMC meetings. Crypto markets followed suit, moving sharply higher after falling on the initial inflation release.

Global equities are extending gains from yesterday’s historic reversal. Global bond yields are generally falling, with U.K. bond yields standing out and continuing their downward reversal as PM Truss is expected to backtrack on the previously announced fiscal initiatives. Additionally, the U.K.’s Finance Minister Kwasi Kwarteng, who sparked severe U.K. market turmoil by releasing his fiscally stimulative mini-budget, was fired just weeks into the job.

Notable news includes: crypto advocacy group Coin Center filed a lawsuit challenging OFAC’s Tornado Cash sanctions; Binance launched a $500m lending pool for Bitcoin miners; developers disclosed a critical vulnerability in all IBC-enabled chains on Cosmos; Tether reduced commercial paper reserves to zero; crypto prime brokerage FalconX unveiled a risk-management platform for institutional clients; Magic Eden is losing NFT market share on Solana as traders reject project royalties; Uniswap Labs raised $165m; and, BlockTower launched a new $150m venture fund.

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

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