Liquidations Wipe Out $2.7 billion in OI, IMX Breakout Strengthens its Technical Picture
Market Update
- On Sunday evening, the perps market experienced a low liquidity liquidation cascade, eliminating about $2.7 billion in open interest (source: CoinGlass) across all coins. We interpret this as a healthy purge of some overleveraged traders, and any immediate market weakness should be viewed as an opportunity to buy on dips. BTC found support at last week's low and has since recovered about half of last night's dip. Today, our focus will be on which assets rebound the strongest from last night's drawdown. Currently, BTC is trading at around $41.5k, and ETH is just under $2200, while most altcoins have retraced 5-10% from last week's highs. Notably, OP continues to perform well, up 5% on the day, reaching its highest level since April. Other assets showing resilience include TIA, IMX, and INJ, all up over 5% in the past 24 hours. Outside of crypto, it's a significant week for macro developments, with the November CPI data due on Tuesday and the Fed's final interest rate decision of the year on Wednesday. Markets are eagerly anticipating the Fed's updated economic projections, with four rate cuts already priced into the futures market for next year. The DXY is moving higher today, back above 104, as interest rates climb ahead of tomorrow's CPI announcement. Despite this, major equity indices are up for the day.
- Google is updating its crypto advertising policy to include the promotion of "Cryptocurrency Coin Trusts" in the United States, effective January 29th. This change allows Google-certified advertisers to showcase these financial products, essentially trusts holding substantial amounts of digital assets, to U.S. audiences. Adherence to local laws in targeted regions remains a requirement for advertisers. This policy revision aligns with the anticipated approval of spot BTC ETFs in the first week of January, followed by their rollout, which could range from two weeks to two months after approval. This update is a positive sign for the approval odds and serves as a reminder of the marketing efforts that all issuers will put behind these ETF products to generate inflows. It also reflects Google's evolving stance on crypto-related advertising, following an earlier policy change that permitted the promotion of NFT games, barring gambling content.
- According to data aggregated by CoinShares, digital asset investment products continued their positive trend with an 11th week of inflows totaling $43 million, although these inflows were considerably lower than in previous weeks, which is noteworthy. There was also an increase in inflows into short products, likely driven by recent price gains and perceived risks of a downturn due to rising rates. Europe led the inflows with $43 million, while the US followed with $14 million, half of which was in short positions. Conversely, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively. Bitcoin continues to lead inflows, receiving $20 million, which brings the YTD bitcoin product inflows to $1.7 billion. Ethereum ETPs marked their sixth consecutive week of inflows, totaling $10 million. Solana and Avalanche products attracted inflows of $3 million and $2 million, respectively. Meanwhile, blockchain equities recorded their largest weekly inflows at $126 million, a development that was certainly reflected in asset prices last week.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
IMX has managed to avoid the losses being seen across the cryptocurrency space to start the new week, and its Monday gains have helped this reach the highest levels since last Spring. As weekly Immutable charts show below, IMX's recent breakout above March 2023 highs resulted in some upward acceleration, and the specific act of having broken out above former highs has helped to strengthen the technical picture following nearly 18 months of consolidation. This confirms a Double-bottom breakout, which makes its intermediate-term prospects brighter heading into 2024. Momentum has begun to reach overbought conditions on a daily and weekly basis, and it's expected that following a push up to $2.31, some consolidation should be required, which might result in IMX retesting the base of its recent breakout near $1.59. Thereafter, further gains could be likely up to $2.93 which looks to be an important intermediate-term target on further gains into January. Until/unless the recent breakout area at $1.59 is violated, minor weakness should prove buyable for further gains into January ahead of a possible 1Q pullback.
Daily Important Metrics
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All metrics as of December 11, 2023 12:59 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $800B | $40,887 | ↓ -6.72% | ↑ 147% | |
 ETH | $262B | $2,182 | ↓ -7.11% | ↑ 82% | ↓ -65% |
 SOL | $30B | $69.62 | ↓ -4.31% | ↑ 603% | ↑ 457% |
 ADA | $19B | $0.5342 | ↓ -10% | ↑ 116% | ↓ -30% |
 DOGE | $13B | $0.0932 | ↓ -7.48% | ↑ 33% | ↓ -114% |
 DOT | $8.2B | $6.54 | ↓ -8.70% | ↑ 51% | ↓ -96% |
 LINK | $8.1B | $14.54 | ↓ -9.57% | ↑ 162% | ↑ 15% |
 MATIC | $7.9B | $0.8291 | ↓ -7.93% | ↑ 8.78% | ↓ -138% |
 NEAR | $2.2B | $2.22 | ↓ -7.57% | ↑ 75% | ↓ -72% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -10% | $33.03 | ↓ -6.98% | ↑ 298% | ↑ 152% |
| BITW | ↓ -30% | $23.97 | ↓ -3.54% | ↑ 346% | ↑ 200% |
| ETHE | ↓ -13% | $18.34 | ↓ -6.38% | ↑ 285% | ↑ 138% |
| BTCC | ↑ 0.33% | $7.52 | ↓ -7.39% | ↑ 148% | ↑ 1.37% |
News
QUICK BITS
Coin Telegraph Crypto fund worth $500M eyes Animoca Brands and Chainalysis: Report The C1 Secondaries Fund, which invests in companies in the digital assets spa... |
The Block Google updates crypto ads policy amid January spot bitcoin ETF anticipation From Jan. 29, advertisers certified by Google may promote such trusts targeting the United States where they meet its requirements. |
MARKET DATA
CoinDesk Cathie Wood's ARK Invest Sells Most Coinbase Shares Since July as Price Rises ARK has been consistently selling Coinbase stock in recent weeks. Friday's is the largest sale since July, when it sold 480,000 shares worth $50.5 million at th... |
The Block Crypto fund inflows hit $43 million, marking 11-week streak totaling $1.8 billion Digital asset investment products marked their 11th week of consecutive inflows, adding $43 million last week. |
DOSE OF DEFI
CoinDesk Decentralized Exchange Uniswap Expands to Bitcoin Sidechain Rootstock Uniswap version 3 (v3) has been deployed on Bitcoin sidechain Rootstock by GFX Labs, the team behind trading terminal Oku. |
REGULATION
Coin Telegraph Tether announces wallet-freezing policy for OFAC-sanctioned persons Tether is expanding control sanctions to the secondary market in an effort to... |
NFTS
Decrypt.co Pudgy Penguins Reveals 'Pudgy World' NFT Game Rollout Plans The Pudgy Penguins NFT empire is expanding and will open the gates for its metaverse experience Pudgy World sometime in 2024. |
WEB 3.0
The Block Big-budget web3 games coming out in 2024 could increase the value of Immutable's token and cause its market cap to rise. |
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