Trading Desk Market Update: 8/17

August 17, 2022

BTC is currently trading around $23,400 and ETH around $1,850. Notable gainers in the last 24 hours are EOS, CHZ, and LEO. The global crypto market cap is $1.16T, down 2.7% over the last day. DeFi Total Value Locked is ~$88b and BTC dominance is around 40%.

Equities, crypto, and bonds are falling this morning as market sentiment has turned negative. U.K. bonds were particularly hurt as July inflation numbers exceeded market expectations and reached a 40-year high of 10.1%. The 2y10y spread in the U.K. inverted following the inflation release as expectations for future rate hikes increased. The 2pm release of the Fed’s July meeting minutes will be in focus today as market participants will look for the latest insights into the potential rate hike trajectory in the U.S. Eurozone CPI will follow tomorrow.  

Notable news includes: a proposed bill could give U.K. regulators new powers over payment-focused crypto assets like stablecoins; Senator Toomey claimed a whistleblower informed him that the FDIC was improperly pressuring U.S. banks from doing business with lawful crypto-related businesses; a Colombian tax official claimed the country will seek to create a digital currency to prevent illicit financial activity like tax evasion; DCG filed for one of its executives to lobby on its behalf; Dutch Authorities said the arrested Tornado Cash developer is suspected of financial crimes; a report indicated that El Salvador’s Chivo app and its bitcoin ATM booths are largely empty; BTG Pactual confirmed the launch of its Brazil crypto platform Mynt; secured a U.K. registration for cryptoasset activities; Coinbase unveiled plans to briefly halt ETH and ERC-20 withdrawals and deposits during The Merge; the ETHPoW team revealed plans to freeze selected contracts for several blocks after The Merge; Jump crypto unveiled plans to propose significant upgrades to Solana’s core code along with building a new validator client; Compound said its multi-chain upgrade Comet is ready to implement; Dogecoin developers warned that Dogechain is just “another knockoff token”; Celsius received approval to sell mined bitcoin to pay for operations; Bitcoin miner Riot took a $349m impairment charge tied to its acquisitions of Whinstone and ESS Metron; Stronghold shifted its near-term focus from mining bitcoin to selling power; CoinFund launched a new $300m web3 fund; OpenSea’s volume fell to a 13-month low; NFT analytics firm Zash partnered with Binance; Tencent halted NFT sales on its Huanhe platform amid regulatory scrutiny; and, the Houston Texans became the first NFL team to sell game suites for crypto. 

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