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Trading Desk Market Update: 1/6

January 6, 2022

BTC is currently trading around $42,900 and ETH around $3,400.  MANA is the only top 100 cryptocurrency up over the last 24 hours, rising 3%.  The global crypto market cap is $2.17T, down 8.3% over the last day.  DeFi Total Value Locked is ~$239b and BTC dominance is around 40%.

After trading above $47,000 on Wednesday, BTC broke its $46,000 support level and fell as low as $42,500 today.  The sell-off occurred as the Federal Reserve minutes revealed plans to dial back policy accommodation and start running off its balance sheet in the coming months.  Such tighter monetary policy caused interest rates to rise and risk asset prices to fall.  Additionally, the Bitcoin network hash rate fell 13% as the Kazakh government shut off the internet amidst protests in the country.  Declining prices triggered further liquidations, which have totaled nearly $900m for all cryptocurrencies over the last 24 hours.

Other news includes: Peru unveiled a draft law to create a wide-scoped framework for crypto assets; the Uruguay central bank published a document suggesting it may be preparing possible crypto regulations; Thailand revealed plans to implement a 15% capital gains tax on crypto profits;  the US Congress is organizing an oversight hearing on crypto mining’s environmental impact; major payments app WeChat will add support for China’s digital yuan; a JPMorgan report says Ethereum’s dominance is at risk given scaling delays and competition; Samsung has opened up its flagship metaverse store in Decentraland; Nasdaq-listed blockchain technology company BTCS is giving shareholders the option of receiving dividends in BTC; and borrow lend protocol Aave has launched its permissioned version for institutions Aave Arc.

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