Trading Desk Market Update: 5/5

May 5, 2022

BTC is currently trading around $39,300 and ETH around $2,900. Notable gainers in the last 24 hours are ZIL, ETC, and AXS. The global crypto market cap is $1.88T, up 2.1% over the last day. DeFi Total Value Locked is ~$205b and BTC dominance is around 42%.

Risk markets realized a sharp rally yesterday afternoon as Fed Chair Powell pushed back against a 75 basis point hike. The Fed decided to raise rates by 50 bps for the first time in over two decades, and Powell telegraphed that they would likely continue to hike at this pace in the upcoming meetings. The Bank of England also raised rates to 1%, imposing their fourth straight 25 basis point hike and cautioning that the economy is on course to shrink next year under inflation pressure. Risk markets have begun to retract some of yesterday’s gains, but they are still in positive territory since the initial Fed announcement. 

Other notable news includes: France’s financial authority approved Binance’s registration to provide crypto-related services; the IMF posed concerns around CAR’s adoption of bitcoin as legal tender; the governor of California signed an executive order to promote blockchain development in the state; Kazakhstan ramped up power consumption reporting requirements on crypto miners; Coinbase opened their NFT marketplace to the broad public; Tron’s new algorithmic stablecoin USDD went live; Yuga Labs refunded the gas fees of Otherdeed minters that had failed transactions; Lido briefly became the top DeFi protocol by TVL with $20b staked; Marathon Digital revealed their intent to begin selling some bitcoin to raise cash; Coinbase scrapped their takeover attempt of Brazilian crypto firm 2TM; Gucci revealed plans to accept crypto in some US stores; Socios partnered with 26 MLS teams to offer fan engagement experiences; crypto-friendly browser Opera integrated direct access to BNB Chain-based dapps; Polkadot completed an upgrade to allow parachain-to-parachain messaging; Solana Pay added customized transaction requests for merchants; Valkyrie launched an AVAX trust for accredited investors; crypto exchange and wallet service Bitcoin.com raised $34m in a private token sale; and, Binance committed $500m to co-invest in Twitter alongside Elon Musk and others. 

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