Daily Market Update: Oct 27, 2022

October 27, 2022

BTC is currently trading around $20,600 and ETH around $1,550. Notable gainers in the last 24 hours are KLAY, WBT, and DOGE. The global crypto market cap is ~$1.04T, up ~1.1% over the last day. DeFi Total Value Locked is ~$55b and BTC dominance is around 41%.

Risk assets are moving higher following a strong US GDP release. US GDP came in at 2.6% in the third quarter, beating market expectations of 2.4% and flipping positive after two consecutive quarters of negative growth. Despite a strong start to the day, Meta is weighing down growthier segments of the market as it’s down nearly ~25% on worse-than-expected earnings that gave weak guidance and doubled down on its expensive metaverse initiatives. Earnings continue to be in focus as Apple and Amazon report after the bell today.

In monetary policy, the Bank of Canada surprised markets yesterday with a smaller-than-expected 50 bp hike, and BoC Governor Macklem noted the hiking cycle is getting closer to an end. The ECB followed today with a consensus 75 bp hike, noting that its hiking cycle is not over and the magnitude of further hikes will be data-dependent. The Fed and BoE will follow next week with interest rate decisions on Wednesday and Thursday, respectively.

Notable news includes: Hong Kong plans to legalize retail crypto trading; Kazakhstan is reportedly testing a CBDC on BNB Chain; Vietnam’s PM called for crypto regulation; Norway entered the metaverse with a tax office in Decentraland; Moldova banned crypto mining amid an energy crisis; crypto data provider Glassnode acquired crypto tax and portfolio tracking platform Accointing; FTX CEO SBF revealed the exchange might launch its own stablecoin via a partnership; Binance launched its own oracle network; NYDIG’s parent company Stone Ridge launched a startup accelerator for Bitcoin’s Lightning Network; and, Core Scientific announced in an 8-K filing that it would run out of cash by the end of the year, and it will cease certain payments due in the coming months.

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

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