Trading Desk Market Update: 11/4

November 4, 2021

BTC is currently trading around $62,000 and ETH close to $4,500.  Notable gainers in the last 24 hours are TEL, AMP, and OMG. The global crypto market cap is ~$2.85T, a 1.0% decrease over the last day.  DeFi Total Value Locked is ~$257b and BTC dominance is around 43%.

As expected, the US Federal Reserve said yesterday it will start tapering its pace of asset purchases later this month.  The Fed’s statement largely maintained its description of inflation, however, continuing to call it “transitory” despite some expectation it may drop the transitory language in light of persistent inflation gains.  “Our baseline expectation is that supply chain bottlenecks and shortages will persist well into next year and elevated inflation as well,” Fed Chairman Jerome Powell later said. “As the pandemic subsides, supply chain bottlenecks will abate and growth will move up and as that happens inflation will decline from today’s elevated levels.”  Stocks moved higher, government bond yields inched upwards, and BTC and ETH briefly dipped before recovering after the announcement. 

In other news, Coinbase is testing a subscription-based service with zero trading fees, and is also allowing users to borrow up to $1m with BTC as collateral.  Meanwhile Kraken’s CEO stated the crypto exchange plans to offer stock trading and other traditional financial services. Other notable news includes former Binance US head Brian Brooks joining Bitcoin mining company Bitfury as CEO, Enjin announcing a $100m Efinity Metaverse Fund to support gaming and NFT developers in its ecosystem, and the EOS Foundation suggesting a new roadmap for the smart contract blockchain.

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