Crypto Daily Report – July 27

Jul 27, 2022
Most Important Daily
Data and News for Digital Assets

Crypto Daily Report

July 27, 2022
THIS MESSAGE IS SENT SOLELY TO MEMBERS OF FSINSIGHT
Tickers on this report: AVAX, BNB, BTC, ETH, LDO, OP, SOL
Market Update
Crypto Daily Report – July 27

FSInsight

Digital Asset Research Team

  • Crypto markets rallied higher before today's FOMC meeting at 2:00 pm EST. BTC and ETH are up 0.94% and 2.78%, respectively, and Alt Layer 1's SOL, AVAX, and BNB are up 2.16%, 2.61%, and 3.11%. A trend since a developer released a tentative timeline for the Merge, is a large outperformance of Ethereum and Ethereum-related tokens (as seen in the image below). For example, LDO and OP are up 148.0% and 83.7% in this timeframe compared to just a 10.1% rise in Bitcoin. The Goerli Testnet Merge is scheduled for August 11th, which will be important to watch in order to see if it runs smoothly or has any technical hiccups. The official Merge is slated for September 19th. 



  • Stablecoin issuer, Tether, stated that it holds no Chinese commercial paper and cut its commercial paper exposure in half this month. This brings its commercial paper exposure down to just ~$3.7B, down significantly from ~$30B in July 2021. Tether has plans to further decrease to ~$200M by the end of August 2022 and to zero by the end of October/early November 2022. When Tether revealed a breakdown of its stablecoin reserves in May of 2021, it showed that just under 50% of the reserves were commercial paper. This led to critics questioning whether the commercial paper exposure was mainly Chinese commercial paper - which could put the stablecoin at risk. Today is the first time Tether explicitly has shown that the reserves contain no Chinese commercial paper, telling the critics, "Tether would like to again reiterate to naysayers who continue to spread falsities about its commercial paper holdings that you are wrong."
  • The Sumitomo Mitsui Banking Corporation (SMBC), Japan's second-largest bank, announced its plans to expand into the digital asset business, including NFTs and Web3 platforms. The bank will partner with Hashport, a group that offers tokenization and listing services in Japan, to launch a token business lab to experiment with digital assets. The lab will "engage in surveys, research, and demonstration experiments related to the promotion of the token business." SMBC also plans to establish a division to offer digital custody services, a token business, and "commercialization support and consulting services to customers considering the token business, including the issuance of NFTs." 
Daily Technical Strategy
Crypto Daily Report – July 27

Mark L. Newton, CMT

Head of Technical Strategy

Please note that Mark is out today, thus we are reposting his technical analysis from yesterday. Mark will return tomorrow.


Following a decline over the last six of seven days, Bitcoin is growing closer to meaningful trendline support that is important to hold to keep this rally from June intact. Daily BTCUSD charts show this pullback getting ever closer to $19.7k which is initially important. Any violation should drive to $18,905 at 7/13 lows, but any move under this signals a pullback to new lows, which at this time is not technically expected right away. Momentum indicators like MACD have made bearish crossovers, but yet uptrends are still intact over the last month. Rallies back to challenge $24,280 look likely from August into September initially, while getting over this would allow for a push up to $28k. At present, it's right to watch carefully as this pullback nears support in the days ahead.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market Cap $983B +$24B (+2.49%)

BTC Dominance   41.46% (--0.87%)

Stable Coins

Increase in circulating stablecoins is a Bullish signal

In Circulation $66B (--0.00%)

In Exchanges $17B (+0.78%)

BTC Metrics

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

# BTC in Exchanges 2.4M (-0.23%)

Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate 0.0020% (-0.0003)

Binance 0.0085% (0.0115)

Bitfinex 0.0103% (0.0103)

Bitmex 0.0085% (0.0115)

ByBit 0.0055% (-0.0020)

Deribit -0.0000% (-0.0001)

FTX -0.0008% (0.0016)

Huobi 0.0068% (-0.0011)

Kraken -0.0017% (-0.0137)

Mean 0.0020% (-0.0003)

OKex -0.0019% (0.0026)

SENTIMENT

Crypto Daily Report – July 27

BMI: 40 (-4.76%)

Futures All Exchanges

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price $21,360 (1.23%)

Spot Basis   $23.26 (0.11%)

Volume 1.3M (-20%)

Open Interest  458,997 (1.83%)

Options All Exchanges

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

Volume 15,304 (-23%)

Open Interest 245,896 (1.09%)

Volume Put/Call Ratio 1.23 (1.68%)

Open Interest Put/Call Ratio 0.5978 (1.48%)

All metrics as of July 27, 2022 10:55 AM
Crypto Prices
SymbolMarket CapLast PriceDaily ChangeYear to DateRelative to BTC YTD
BTC$410B$21,4652.44%-54%
ETH$181B$1,4907.15%-60%-5.86%
ADA$16B$0.47293.57%-64%-10%
SOL$13B$37.104.30%-79%-24%
DOGE$8.4B$0.06303.19%-63%-9.12%
DOT$6.7B$6.833.13%-75%-21%
MATIC$6.5B$0.81089.37%-68%-14%
LINK$3.0B$6.362.01%-68%-14%
NEAR$2.8B$3.763.09%-74%-20%
HNT$1.0B$8.54-0.96%-77%-23%
FTM$772M$0.30343.08%-87%-32%
Our Deep Research Projects
AVAX$6.0B$21.244.57%-81%-26%
IOTA$773M$0.27803.30%-80%-25%
ZIL$495M$0.03784.00%-50%3.87%
AMP$357M$0.00852.97%-83%-28%
ZEN$190M$15.041.39%-76%-21%

All prices as of July 27, 2022 11:03 AM

Exchange Traded Products (ETPs)
SymbolPremium to NavLast PriceDaily ChangeYear to DateRelative to BTC YTD
GBTC-29%$13.00-5.52%-62%-7.88%
BITW-41%$10.41-9.32%-73%-19%
ETHE-25%$9.82-8.18%-70%-15%
QBTC-7.84%$20.87-4.00%-66%-12%
BTCC-0.23%$3.89-4.66%-55%-0.71%

All prices as of July 27, 2022 7:05 AM

Stocks
SymbolMarket CapLast PriceDaily ChangeYear to dateRelative to BTC YTD
PYPL$216B$85.2411%-55%-0.63%
SQ$76B$69.935.33%-57%-2.54%
COIN$65B$56.176.12%-78%-24%
SBNY$18B$1771.29%-45%8.96%
HOOD$15B$8.662.73%-51%2.93%
MSTR$6.1B$2473.79%-55%-0.54%
SI$4.2B$83.992.31%-43%11%
MARA$3.5B$11.079.50%-66%-12%
RIOT$2.7B$6.646.92%-70%-16%
MOGO$223M$0.92590.89%-73%-19%

All prices as of July 27, 2022 11:19 AM

News
QUICK BITS
Japanese Bank SMBC to Foray Into NFT and Web3 Markets
Bitcoin.com
The Sumitomo Mitsui Banking Corporation (SMBC), the second largest of the three biggest banks in Japan, has announced it is planning to expand into digital asset businesses, including non-fungible tokens (NFTs) and Web3 platforms. The company will pa...
Cathie Wood's Ark Invest Offloads Over 1.4M Coinbase Shares as COIN Price Falls
CoinDesk
Coinbase shares have taken a big hit following a disappointing results report and a report the company is being investigated by the U.S. Securities and Exchange Commission.
Tether says that it holds no Chinese commercial paper
The Block
Stablecoin issuer Tether said today — seemingly for the first time — that it holds no Chinese commercial paper. The post Tether says that it holds no Chinese commercial paper appeared first on The Block.
MARKET DATA
Polygon’s Q2 data shows significant growth in the ecosystem
CryptoSlate
The average transaction cost on Polygon (MATIC) declined 49% to $0.018 during the second quarter, according to statistics released on July 26. The post Polygon’s Q2 data shows significant growth in the ecosystem appeared first on CryptoSlate.
REGULATION
US Senators Introduce Bipartisan Bill to Exempt Small Crypto Transactions From Taxes
Bitcoin.com
A new bipartisan bill has been introduced in the Senate that would simplify the use of cryptocurrency for everyday purchases by creating tax exemption for personal crypto transactions under $50 as well as when the capital gains are less than $50. New...
FUNDRAISING AND M&A
KuCoin CEO Johnny Lyu launches ‘Anti-FUD Fund’
Coin Telegraph
The exchange’s Anti-FUD Fund comes shortly after KuCoin CEO Johnny Lyu’s spat with a whistleblower, who claimed the exchange was insolvent.
Unstoppable Domains clinches unicorn status in $65 million Series A round
The Block
It will use the funds to reduce friction of crypto payments between applications and to build out reputation-based reward programs. The post Unstoppable Domains clinches unicorn status in $65 million Series A round appeare...
HIRING
CFTC poaches Pantera Capital’s legal counsel, citing digital asset experience
Coin Telegraph
Joe Cisewski formerly provided Pantera Capital with legal and regulatory guidance relating to the firm’s funds and investment advisers.
Gods Unchained developer Immutable lays off around 8% of staff
The Block
Layoffs were carried out earlier this week following an impromptu 15-minute all hands meeting, a person familiar with the matter said. The post Gods Unchained developer Immutable lays off around 8% of staff appeared first ...
PRODUCT UPDATES AND PARTNERSHIPS
LDA Capital Commits $25 Million for Buildout of the Aftermath Islands Metaverse
NewsBTC
The funds will be used for onboarding users and scaling Aftermath Islands’ numerous Metaverse initiatives Aftermath Islands Metaverse Limited, the development company behind the highly ambitious Aftermath Islands Metaverse project, has secured a $25 ...

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