Crypto Daily Report – July 15

Jul 15, 2022
Most Important Daily
Data and News for Digital Assets

Crypto Daily Report

July 15, 2022
THIS MESSAGE IS SENT SOLELY TO MEMBERS OF FSINSIGHT
Tickers on this report: AAVE, BTC, COMP, ETH, LDO, QQQ, SPX, UNI, USDC
Market Update
Crypto Daily Report – July 15

Sean Farrell

Head of Digital Asset Strategy

  • The global crypto market continues to rally today on the back of leading altcoins, some trading 10% higher or more. The total crypto market cap is up nearly 5% over the previous 24 hours, as BTC (+3.4%) nears a return above the $21k threshold and ETH (+10.5%) moves above $1.2k. Many blue chip DeFi tokens, which have largely underperformed over the past 18 months, are up big, with AAVE, COMP, and UNI all trading at or near 10% higher on the daily chart. The clear outperformer on the day is LDO, the native token for ETH liquid staking platform Lido. LDO is likely benefitting from the recently announced target merge date of September 19th, which was released this week. As seen below, there was an enormous spike in new ETH staked this week, likely for the same reason. Traditional markets are rallying on the back of strong retail sales for the month, relieving some investor concerns surrounding the growing probability of a recession. At the time of writing, the SPX is trading 1.8% higher, and the QQQ is up 1.6% since the US market open. 


Figure: Daily New ETH Staked to the ETH 2.0 Deposit Contract

  • To assuage concerns about the assets backing leading stablecoin USDC, Circle CEO Jeremy Allaire took to Twitter yesterday to announce the publication of an exact breakdown of USDC reserves. The transparency report went beyond listing the total balance of the assets held in reserve and identified the individual securities in its portfolio of US treasuries. As of June 30th, there was $55.6 billion of USDC in circulation, backed by $55.7 billion in liquid reserve assets. Of the liquid reserve assets, $13.6 billion is held in cash deposits, and $42.1 billion is held in US treasuries with a weighted average maturity of 43.9 days. Given recent events, the industry appreciated the insight into the specific reserves backing the second-largest stablecoin. Many are now looking to Tether to commit to the same level of transparency around USDT as Circle does with USDC. As a reminder, while we would also value more granular transparency from Tether, we maintain that any FUD surrounding USDT is unfounded as recent market volatility has proven to be a substantial stress test for the stablecoin. 
  • In an interview yesterday, SEC Chair Gary Gensler spoke to reporters about regulation in crypto, specifically regarding disclosures. In the interview, he suggested that the regulatory body might use its power to exempt crypto companies from certain securities laws to help protect investors. The goal of waiving certain securities laws for crypto companies would enable these unique entities to produce more transparent disclosures to inform investors of the specific risks they are incurring when engaging with these platforms. This would be an interesting solution to an ongoing issue, as many retail-facing lenders often fall short on disclosures because there is little regulatory clarity around how to market digital asset products. While it remains to be seen how these words manifest in action, this is undoubtedly one of the first instances of the SEC providing some semblance of a path forward regarding investor protection and might end up being a favorable tailwind for the industry. 
Daily Technical Strategy
Crypto Daily Report – July 15

Mark L. Newton, CMT

Head of Technical Strategy

Please note that Mark is out today, thus we are reposting his technical analysis from Thursday. Mark will return on Monday.


Avalanche has started to stabilize in recent weeks, and its downtrend has morphed into a triangle consolidation pattern. This week's minor pullback held where it needed to, and has bounced back above $18.50 as of Wednesday's close. Overall, these patterns tend to normally be resolved in the direction of the original move, which in this case is lower. However, any final break of AVAXUSD $16 would set up for a likely final decline down to test and slightly undercut $13.74 before a low is at hand. Bottom line, it's right to expect technically that this bounce does not break $21.14 but rolls back over and takes out $16 over the next week. This in turn will likely offer an attractive risk/reward to buy dips on pullbacks into the final week of July, which based on Elliott-wave structure, sentiment and relative momentum improvement, could mark an intermediate-term low for 2022.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market Cap $938B +$55B (+6.17%)

BTC Dominance   42.62% (-0.10%)

Stable Coins

Increase in circulating stablecoins is a Bullish signal

In Circulation $66B (-0.08%)

In Exchanges $15B (+0.01%)

BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC in Exchanges 2.4M (-0.05%)

Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate 0.0057% (0.0044)

Binance 0.0007 (0.0011)

Bitfinex -0.0000% (-0.0065)

Bitmex 0.0007% (0.0011)

ByBit 0.0047% (0.0021)

Deribit 0.0000% (-0.0005)

FTX 0.0000% (-0.0032)

Huobi 0.0055% (0.0038)

Kraken -0.0025% (0.0110)

Mean 0.0057% (0.0044)

OKex 0.0089% (0.0077)

SENTIMENT

Crypto Daily Report – July 15

BMI: 41 (0.00%)

Futures All Exchanges

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price $20,845 (2.18%)

Spot Basis   $-0.3445 (-0.00%)

Volume 1.9M (-21%)

Open Interest  466,148 (2.33%)

Options All Exchanges

Higher open interest change in a bull market is bullish for the sector

Volume 16,613 (-40%)

Open Interest 227,885 (1.70%)

Volume Put/Call Ratio 1.49 (21%)

Open Interest Put/Call Ratio 0.6423 (2.37%)

All metrics as of July 15, 2022 11:42 AM
Crypto Prices
SymbolMarket CapLast PriceDaily ChangeYear to DateRelative to BTC YTD
BTC$398B$20,8453.36%-55%
ETH$149B$1,22510%-67%-12%
ADA$15B$0.43892.28%-67%-11%
SOL$13B$37.839.62%-78%-23%
DOGE$8.4B$0.06313.63%-63%-7.75%
DOT$6.8B$6.866.14%-75%-19%
MATIC$5.5B$0.69025.51%-73%-17%
LINK$2.9B$6.251.65%-68%-13%
NEAR$2.6B$3.567.00%-76%-20%
HNT$1.1B$8.881.60%-76%-21%
FTM$656M$0.25766.50%-89%-33%
Our Deep Research Projects
AVAX$5.5B$19.384.88%-82%-27%
IOTA$748M$0.26901.88%-80%-25%
ZIL$495M$0.03803.30%-50%5.42%
AMP$383M$0.00911.50%-81%-26%
ZEN$200M$15.885.21%-74%-19%
VGX$133M$0.47800.41%-84%-28%

All prices as of July 15, 2022 11:41 AM

Exchange Traded Products (ETPs)
SymbolPremium to NavLast PriceDaily ChangeYear to DateRelative to BTC YTD
GBTC-31%$13.135.80%-62%-6.17%
BITW-26%$9.597.03%-75%-19%
ETHE-26%$8.7512%-73%-17%
QBTC-7.84%$20.634.77%-66%-11%
BTCC0.10%$3.844.92%-55%0.04%

All prices as of July 15, 2022 7:06 AM

Stocks
SymbolMarket CapLast PriceDaily ChangeYear to dateRelative to BTC YTD
PYPL$216B$72.534.28%-62%-6.05%
SQ$76B$64.112.71%-60%-4.82%
COIN$65B$52.90-0.97%-79%-24%
SBNY$18B$1913.97%-41%14%
HOOD$15B$8.16-0.97%-54%1.44%
MSTR$6.1B$2071.34%-62%-6.43%
SI$4.2B$61.132.90%-59%-3.26%
MARA$3.5B$7.87-1.62%-76%-21%
RIOT$2.7B$5.452.44%-76%-20%
MOGO$223M$0.8500-0.29%-75%-20%

All prices as of July 15, 2022 11:58 AM

News
QUICK BITS
Celsius Owed $439M by Lending Firm EquitiesFirst: Report
CoinDesk
Troubled crypto lending firm Celsius is owed $439 million by Indianapolis-based private lending platform EquitiesFirst.
Three Arrows Liquidators Ask Singapore Court to Recognize Company's BVI Bankruptcy: Straits Times
CoinDesk
Media in Singapore are reporting that Three Arrows’ liquidators are working to get Singaporean courts to recognize the British Virgin Islands (BVI) liquidation order.
Central African Republic set to launch Sango bitcoin sidechain
The Block
The Sango Platform will launch on July 25 and include a bitcoin sidechain as part of the country's crypto initiative. The post Central African Republic set to launch Sango bitcoin sidechain appeared first on The Block.
CRYPTO INFRASTRUCTURE
Data transfer network Plaid integrates 4 major crypto exchanges
Coin Telegraph
The San Francisco-based fintech company now supports Binance.US, Gemini, Robinhood and SoFi accounts.
REGULATION
Putin Signs Law Prohibiting Payments With Digital Assets in Russia
Bitcoin.com
President Vladimir Putin of Russia has signed into law a bill banning payments with digital financial assets. The legislation obliges exchange operators to refuse to process transactions facilitating the use of DFAs, a legal category currently coveri...
CFTC labels 34 crypto and forex firms as unregistered foreign entities
Coin Telegraph
"Customers engaged in transactions with these entities may not receive the benefit of the customer protections, safeguards, and guardrails,” said CFTC commissioner Kristin Johnson.
Gensler: SEC could tailor disclosures for crypto firms
The Block
A top financial regulator suggested the Securities and Exchange Commission could tailor disclosures to accommodate crypto companies while protecting investors. The post Gensler: SEC could tailor disclosures for crypto firm...
FUNDRAISING AND M&A
Monopoly Millionaire Game Raised $1 Million in Seed Funding
Bitcoin.com
PRESS RELEASE. Monopoly Millionaire Game, a marine-themed GameFi that involves island construction, cultivating, shooting and more, announced that it has completed a seed funding of 1 million US Dollar. By this round of funding, MMG was valued at 10 ...
5ire Raises $100M to Fund Expansion of Sustainable Blockchain
CoinDesk
Pratik Gauri founded the company with fellow Indian Prateek Dwivedi and Vilma Matilla. Gauri and Dwivedi, friends for more than a decade, came up with the idea at an Indian tea shop writing the first thoughts down on a napkin.
Solana-based MonkeyLeague game developer raises $24 million
The Block
UnCaged Studios, the developer of the Solana-based game MonkeyLeague, has raised $24 million in a Series A funding. The post Solana-based MonkeyLeague game developer raises $24 million appeared first on The Block.
UnCaged Studios Raises $24M to Support Web3 Game Developers
CoinDesk
The company will use the funds to build out its Solana-based esports franchise MonkeyLeague ahead of its public launch.
NFT financing platform Supermojo raises $6 million in seed funding
The Block
The startup intends to build out "buy now pay later" payment models for non-fungible tokens (NFTs), a growing trend. The post NFT financing platform Supermojo raises $6 million in seed funding appeared first on The Block.
NFT membership platform Hang raises $16 million Series A
The Block
The company counts Pinkberry, Budweiser, Bleacher Reporter, and Superfly among its clients. The post NFT membership platform Hang raises $16 million Series A appeared first on The Block.
Virtual Avatar Firm Hologram Raises $6.5M Seed Round
CoinDesk
Hologram partners with online communities to help them create unique digital identities in the metaverse.
NFTS
OpenSea Lays Off 20% of Its Staff to Prepare for 'Prolonged Downturn'
Decrypt.co
OpenSea CEO Devin Finzer says the move gives the company multiple years of runway "under various crypto winter scenarios."
HIRING
MoonPay bolsters team with hires from Cisco, Cash App and Coinbase
The Block
Asiff Hirji, former Coinbase president and COO, will be joining as advisor to the CEO.  The post MoonPay bolsters team with hires from Cisco, Cash App and Coinbase appeared first on The Block.

Reports you may have missed

Crypto markets are declining following news that most of the SEC’s lawsuit against Coinbase will proceed (more below). BTC (-1.27%) reached intraday highs of $71.8k before declining to $69k after the news. Rumors have circulated that Morgan Stanley and PNC will soon approve access to Bitcoin ETFs on their wealth management platforms. Together, Morgan Stanley and PNC hold over $1.5 trillion in client assets and likely will provide a tailwind...

Following the worst week of ETF flows since inception, BTC (+3.89%) is rebounding, rising to $69.6k, and ETH (+4.09%) has reclaimed the $3,500 mark. Last week’s outflows totaled $888 million, representing about a fifth of the inflows seen in the previous two weeks. ONDO, an institutional RWA protocol, is one of the top performers today, rising 7.61% as investors remain optimistic about the future of tokenized assets and their ability...

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