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Trading Desk Market Update: 5/12

May 12, 2022

BTC is currently trading around $28,200 and ETH around $1,950. Notable gainers in the last 24 hours are UST, SAPP, and TRX. The global crypto market cap is $1.26T, down 14.3% over the last day. DeFi Total Value Locked is ~$115b and BTC dominance is around 44%.

Today is lighter on the news front, but sentiment remains poor with both equities and crypto continuing in their risk-off descent while treasuries and the US dollar have caught a safe haven bid. Terra’s UST remains de-pegged from the dollar, trading around $0.58 while an increasingly large number of conversions to Luna has inflated Luna’s supply and pushed its price down to a low of $0.04. Some market participants have raised concern over Tether (USDT) slightly de-pegging through the night amidst the increased crypto volatility. USDT traded at a low of about $0.95 over the night, but it has since restored the majority of this gap as Tether is still processing redemptions for $1. USDT is currently trading around $0.99.

Other notable news includes: the crypto market cap dropped materially overnight as $1.2b of ETH futures were liquidated; Chile has delayed their plans for a CBDC as they conduct more research; a leaked South Korean government document indicated the country will roll out comprehensive crypto legislation in 2023; FTX US applied for a trust charter in NY; cryptocurrencies held for more than one year can now be sold tax-free in Germany; Nubank, Brazil’s largest digital bank, invested 1% of its portfolio in BTC and will let users trade BTC and ETH; FASB voted to review the accounting rules for cryptocurrencies; Coinbase’s CEO reiterated that funds are safe amidst bankruptcy protection fears; Citadel Securities, BlackRock, and Gemini all dismissed rumors that they were involved in the collapse of UST; Terra outlined stablecoin support measures as Luna’s price slid; Tether revealed that they are moving $1b USDT from the Tron blockchain to Ethereum and Avalanche; Terra founder Do Kwon was reportedly linked to a previously failed algorithmic stablecoin project known as Basis Cash; Anchor contributors proposed reducing the yield from 19.5% to 4%; Binance Futures delisted coin-margined Luna perps; Cathie Wood’s Ark acquired more than half a million shares of Coinbase as the exchange plummeted on earnings; Grayscale held a private meeting with the SEC; three crypto ETFs went live in Australia; Arrington Capital removed their Anchor yield fund from their website; Arca doubled down on UST amidst the stablecoin’s collapse; WhaleFin sponsored Chelsea FC; and, US authorities sentenced a crypto trader to 42 months in prison for running fraudulent crypto schemes. 

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