Daily Market Update: Oct 19, 2022

October 19, 2022

BTC is currently trading around $19,100 and ETH around $1,300. Notable gainers in the last 24 hours are AAVE, TWT, and UNI. The global crypto market cap is ~$958B, down ~1.9% over the last day. DeFi Total Value Locked is ~$69b and BTC dominance is around 42%.

Markets are unwinding some gains from the hot start to the week as equities, bonds, and crypto all move lower. The U.S. 10Y yield breached 4.1%, its highest level in nearly 15 years, following hawkish comments from Minneapolis Fed President Kashkari. Eurozone and U.K. inflation remained resilient at ~10%, generally in line with expectations (+/- 0.1%). The BoE confirmed it would begin selling bonds early next month, further tightening monetary conditions in the U.K. The sales will initially exclude long-dated bonds, causing the Gilt’s term structure to flatten on the announcement.

Notable news includes: new IRS tax guidance treats NFTs the same as cryptocurrencies and not collectibles; Japan’s crypto regulator reportedly plans to ease token listing rules; the European Commission warned that member states must prepare to halt crypto mining in the event of an energy emergency; a shortage of Goerli testnet ETH pushed its price to ~$0.10; Aptos’ mainnet launched and tokens were airdropped to ‘early network participants’; Aave unveiled the technical paper for its upcoming GHO stablecoin; Avalanche subnets now allow validators to stake with the subnet’s native token; NFT project Azuki launched a physically backed token standard on Ethereum; Coinbase filed an amicus brief supporting Grayscale’s lawsuit against the SEC for rejecting the firm’s spot bitcoin ETF proposal; and, Silvergate’s crypto-to-fiat transfers decreased by $50b versus 3Q21.

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

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