Daily Market Update: September 29, 2023

September 29, 2023

BTC is currently trading around $27,000 and ETH around $1,650. Notable gainers in the last 24 hours are SUI, ARB, and RLB. The global crypto market cap is ~$1.12T, up 2.2% over the last day. DeFi Total Value Locked is ~$39b and BTC dominance is around 50%.

Traditional markets are rallying due to positive inflation readings out of Europe and the US, and interest rates retracted across the developed world in response.  Specifically, euro area inflation was 4.3% in September, much lower than the prior month’s 5.2% reading and better than the 4.5% consensus estimate.  In the US, August’s core PCE readings came in at 3.9% on the year and 0.1% on the month, both improvements from July and inline to slightly better than expectations.  Lastly, investors are closely watching whether US lawmakers can agree on a government funding deal before a partial shutdown begins at 12:01am EST on Sunday. However, the Republican-controlled House and Democrat-led Senate appear to be moving in opposite directions and prospects for a near-term resolution look bleak.

Meanwhile, crypto markets are rallying on the SEC’s approval of the first Ethereum Futures ETF, which will see Valkyrie Investments convert its existing Bitcoin Futures ETF into a combined fund offering both Bitcoin and Ethereum Futures exposure starting today.  Moreover, VanEck’s filing for a pure Ethereum Futures ETF also went effective and is expected to launch as early as Monday, and we anticipate more competing products will follow next week from the likes of ProShares and others.  While it had been reported in August that the SEC was likely to allow Ethereum Futures ETFs, many suggested the approval signifies that the SEC may be slowly opening up to crypto.

Elsewhere, notable news includes: The SEC delayed its decision on several spot bitcoin ETFs, including BlackRock’s; a new US bill proposed requiring crypto firms to report all offchain transactions to the CFTC; Ripple announced it will not move forward with its previously-announced acquisition of Fortress Trust; PayPall filed an application for an NFT purchase and transfer system; Coinbase received regulatory approval to offer perpetual futures to retail clients outside of the US; Fireblocks acquired BlockFold to enhance its tokenization services; Ethereum developers successfully launched the Holesky testnet which will help test the limits of messaging overhead as it has the largest validator set on record; Gemini revealed plans to halt operations in the Netherlands by mid-November; and, a court again denied SBF’s motion for pre-trial release

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Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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