Daily Market Update: Oct 26, 2022

October 26, 2022

BTC is currently trading around $20,500 and ETH around $1,500. Notable gainers in the last 24 hours are TKX, RPL, and CETH. The global crypto market cap is ~$1.03T, up ~6.4% over the last day. DeFi Total Value Locked is ~$55b and BTC dominance is around 42%.

Crypto is moving higher, diverging from other risk assets as nearly $1b of BTC and ETH shorts were liquidated over the past day, predominantly on FTX. Conversely, global equities are reversing their positive short-term trend with meaningful dispersion among sectors and regions. Growthier segments of the market have been negatively impacted by Microsoft and Alphabet’s earnings releases, which highlighted the pressure on IT budgets and ad spend. The two bellwethers are dragging down the broader NASDAQ, with both names down more than 6% in pre-market trading. Investors will continue to focus on earnings, with Meta reporting after the bell today and Apple and Amazon reporting tomorrow.

Notable news includes: a UK crypto-focused parliament group called on PM Sunak to clarify his crypto policies; Singapore is considering a ban on leveraged crypto trading for retail investors; Australia confirmed crypto transactions are subject to capital gains; a Bitcoin researcher claims validity rollups have the potential to make BTC transactions 100x faster; Cash App users can now send and receive bitcoin via Lightning; MakerDAO is being criticized for a lack of community participation in governance as only ~15% of circulating MKR supply was mobilized to vote on a new proposal, resulting in founder Rune Christensen having enough votes to approve the proposal unilaterally; structured product protocol Ribbon is considering a new institutional lending offering; Filecoin launched a web3 data-storage solution for carbon offsets; a16z’s largest crypto fund fell ~40% in 1H22; and, Matt Levine released a 40,000 word article on crypto.

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

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