Crypto Daily Report – October 14

Oct 14, 2022
Most Important Daily
Data and News for Digital Assets

Crypto Daily Report

October 14, 2022
THIS MESSAGE IS SENT SOLELY TO CLIENTS OF FUNDSTRAT
Tickers on this report: BTC, DXY, ENS, QQQ, SPX, T, TRX
Market Update
Crypto Daily Report – October 14

Fundstrat

Digital Asset Research Team

  • Equities are near YTD lows as the market gave back gains from a historic reversal yesterday. The SPX lost 2.13% while QQQ is down 2.7% after a sentiment survey from the University of Michigan showed consumer inflation expectations were increasing. The US 10Y is up to 4.00% at writing while DXY gained 0.80% to reach 113.36Over the last 24 hours the global crypto market cap is flat 0.20% as BTC (+0.0%) looks to hold the $19,200 level. Currently trading at $1,296 (+1.8%), ETH has outpaced BTC and the rest of the top 10 digital assets by market cap over the last day. ENS was the top performer in the top 100 (+7.1%). The token governing the most popular wallet naming service on Ethereum has seen strong performance over the last 30 days (+36.5%) following continued momentum and adoption after the ETH merge. 
  • Leading stablecoin issuer Tether has announced they have sold all commercial paper holdings and replaced them with US Treasury bills. At a market cap of $68bn, USDT is the 3rd largest cryptocurrency by market cap. Tether has often been criticized for its lack of transparency on holdings backing USDT, which they claim will always be redeemable for $1 USD. As the most traded cryptocurrency, the majority of exchange pairings are $ USDT denominated markets. Following Terra’s notorious stablecoin collapse earlier this year, rumors swirled USDT holdings of commercial paper were “85% Chinese or Asian”, which Tether disputed to be untrue. In 2021 Tether and its parent company Bitfinex were fined $18.5 million in a settlement with New York State after prosecutors found that Tether’s promise its stablecoin was fully backed by U.S dollars was untrue. In a push for more transparency, the stablecoin issuer released an independent accountant attestation report conducted by BDO Italia, although critics point out this falls short of the transparency of an official audit. The report showed that ~80% of holdings were backed by cash equivalents, with the remaining holdings in a variety of assets including secured loans, corporate bonds, precious metals, and “other investments” such as digital tokens. 
  • Binance announced it will be funding a $500 million lending pool for Bitcoin miners. The world’s most popular cryptocurrency exchange is only the latest to move into the space, following the launch of a similar lending facility from DeFi platform Maple Finance ($300m). Despite the negative BTC in performance YTD ($59%), mining difficulty is at all-time highs meaning miners need even more infrastructure to be profitable. Throughout the bear market mining revenue is down nearly 60% since the beginning of the year, according to Blockchain.com. The combination of falling revenue and compressing margins leaves miners with few options considering traditional banks were already skeptical about doing business with cryptocurrency-related companies. Borrowers will need to provide collateral to Binance and pay interest rates between 5-10% for loan terms between 18-24 months. The leading exchange stated the initiative was launched to “help maintain a healthy digital asset ecosystem”. 
Daily Technical Strategy
Crypto Daily Report – October 14

Mark L. Newton, CMT

Head of Technical Strategy

TRON has shown some recent evidence of strengthening at a time when many tokens remain at or near 52-week lows. Daily TRX USD charts show the extreme downside volatility on heavy volume into June which was followed by a textbook 50% retracement. This bounce into late June largely held the resistance level near 0.07 for two months before sliding back lower into late September. However, the last few weeks have shown some constructive ability to start strengthening, which has successfully exceeded a minor downtrend from June peaks. Friday's gains are set to finish at the highest levels in nearly a month,and suggest the start of a minor bounce at hand. Upside targets lie initially near $0.070-$0.072 and the ability to exceed this level argues for a larger rally up to $0.09. Downside support lies at $0.058,and can't be broken without postponing the rally and suggest another test of June lows might occur. Overall, risk/reward has improved given recent evidence of this minor strengthening, and TRON looks to have a chance of a minor rally in the weeks to come.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market Cap $932B +$51B (+5.78%)

BTC Dominance   40.14% (+0.60%)

Stable Coins

Increase in circulating stablecoins is a Bullish signal

In Circulation $68B (+0.00%)

In Exchanges $17B (+0.33%)

BTC Metrics

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

# BTC in Exchanges 2.4M (-0.17%)

Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate -0.0021% (-0.0059)

Binance -0.0157% (-0.0191)

Bitfinex 0.0000% (0.0000)

Bitmex -0.0157% (-0.0191)

ByBit -0.0031% (-0.0089)

Deribit -0.0002% (0.0000)

FTX 0.0000% (0.0032)

Huobi 0.0039% (0.0003)

Kraken -0.0107% (-0.0041)

Mean -0.0021% (-0.0059)

OKex -0.0129% (-0.0159)

SENTIMENT

Crypto Daily Report – October 14

BMI: 0 (0.00%)

Futures All Exchanges

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price $19,135 (2.30%)

Spot Basis   $-79.59 (-0.41%)

Volume 2.6M (195%)

Open Interest  577,942 (1.34%)

Options All Exchanges

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

Volume 59,925 (317%)

Open Interest 287,206 (13%)

Volume Put/Call Ratio 0.8304 (28%)

Open Interest Put/Call Ratio 0.5468 (4.44%)

All metrics as of October 14, 2022 2:59 PM
Crypto Prices
SymbolMarket CapLast PriceDaily ChangeYear to DateRelative to BTC YTD
BTC$369B$19,215-0.90%-59%
ETH$160B$1,3001.38%-65%-6.16%
ADA$13B$0.3684-1.76%-72%-13%
SOL$11B$30.22-0.95%-83%-24%
DOGE$7.8B$0.0588-1.30%-66%-6.76%
MATIC$6.9B$0.78921.85%-69%-9.73%
DOT$6.8B$6.06-0.81%-78%-19%
LINK$3.4B$6.90-1.28%-65%-6.19%
NEAR$2.4B$2.98-2.95%-80%-21%
HNT$563M$4.39-4.15%-88%-29%
FTM$512M$0.2013-2.16%-91%-32%
Our Deep Research Projects
AVAX$4.7B$15.751.02%-86%-27%
IOTA$692M$0.2491-2.20%-82%-23%
ZIL$403M$0.0301-0.45%-60%-1.46%
AMP$205M$0.00491.48%-90%-31%
ZEN$159M$12.32-1.16%-80%-21%

All prices as of October 14, 2022 2:59 PM

Exchange Traded Products (ETPs)
SymbolPremium to NavLast PriceDaily ChangeYear to DateRelative to BTC YTD
GBTC-37%$11.250.36%-67%-8.18%
BITW-40%$10.71-1.11%-72%-13%
ETHE-34%$8.39-1.87%-74%-15%
QBTC-8.55%$19.141.70%-69%-9.66%
BTCC0.15%$3.601.41%-58%0.74%

All prices as of October 14, 2022 7:09 AM

Stocks
SymbolMarket CapLast PriceDaily ChangeYear to dateRelative to BTC YTD
PYPL$216B$80.40-4.33%-57%1.61%
SQ$76B$51.51-8.39%-68%-9.14%
COIN$65B$63.56-8.23%-75%-16%
SBNY$18B$141-8.51%-57%2.47%
HOOD$15B$9.93-6.59%-44%15%
MSTR$6.1B$210-4.92%-61%-2.52%
SI$4.2B$67.00-2.40%-55%4.18%
MARA$3.5B$10.30-8.20%-69%-9.68%
RIOT$2.7B$5.78-9.55%-74%-15%
MOGO$223M$0.8070-5.30%-76%-17%

All prices as of October 14, 2022 5:45 PM

News
QUICK BITS
Tether reduces commercial paper reserves for USDT to zero
CryptoSlate
Stablecoin issuer Tether has eliminated commercial papers from its USDT reserve, according to its latest reserve update. The post Tether reduces commercial paper reserves for USDT to zero appeared first on CryptoSlate.
NYDIG laid off one-third of staff in September: WSJ
The Block
NYDIG laid off about one-third of its staff, the Wall Street Journal reported late Thursday. The post NYDIG laid off one-third of staff in September: WSJ appeared first on The Block.
DOSE OF DEFI
Decentralized exchange protocol Uniswap V3 is deploying on zkSync 2.0
The Block
A governance proposal that would deploy Uniswap V3 on the Ethereum scaling solution zkSync passed earlier today. The post Decentralized exchange protocol Uniswap V3 is deploying on zkSync 2.0 appeared first on The Block.
REGULATION
Gensler supports granting CFTC more power over spot markets
The Block
The US commodities regulator just gained a powerful ally in its push for authority over crypto spot markets.   The post Gensler supports granting CFTC more power over spot markets appeared first on The Block.
FUNDRAISING AND M&A
BlockTower launches $150 million fund backed by BPI France and Mass Mutual
The Block
BlockTower's $150 million venture fund emerges from stealth and is backed by the likes of BPI France and Mass Mutual. The post BlockTower launches $150 million fund backed by BPI France and Mass Mutual appeared first on Th...
Blockchain games and metaverse projects raised $1.3B in Q3: DappRadar
Coin Telegraph
The blockchain gaming sector remains active in terms of adoption and venture capital firms have taken notice, according to industry data.
Uniswap’s $165 Million Series B Capital Raise One of the Largest by a Crypto Firm in 2022
Bitcoin.com
Uniswap Labs, the firm behind the Uniswap decentralized exchange protocol, announced on Thursday that it raised $165 million in a Series B funding round. According to one report, the capital raise, which sees Uniswap Labs’ valuation rise to $1.66 bil...
NFTS
Budweiser turns scoreboards into NFTs for FIFA World Cup
The Block
Minting 10 a.m. ET today, the Budverse x FIFAWorldCup Live Scoreboard NFT Collection allows buyers to select the country they wish to follow and mint a scoreboard that will track its progress throughout the competition. Th...
Magic Eden Losing Market Share as Solana NFT Traders Reject Royalties
Decrypt.co
Are creator NFT royalties on the way out on Solana? Zero-royalty trading platforms are quickly gaining traction, and Magic Eden is adapting.
MINING
Binance launches $500 million fund to provide loans to Bitcoin miners
The Block
Binance has launched a $500 million fund to provide loans to Bitcoin miners struggling to cope with difficult crypto-market conditions. The post Binance launches $500 million fund to provide loans to Bitcoin miners appeare...
HACKS, EXPLOITS, AND SCAMS
Cosmos, Osmosis to deploy patch on all major public IBC chains to fix potential exploit
CryptoSlate
Cosmos co-founder Ethan Buchman announced that a patch would be deployed on all major public Inter-Blockchain Communication (IBC)-enabled chains by tomorrow after they identified a vulnerability that may lead to a potential exploit via a blog post on...
Mango Markets Community Counters Expoiter’s Settlement Offer
CoinDesk
The initial offer appeared to have been rejected.

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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