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Jan 24, 2024

Stocks are rising following China’s decision to lower the reserve requirements for banks, coupled with strong early earnings from technology firms like Netflix and ASML. Meanwhile, the cryptocurrency market has stabilized somewhat, recovering slightly from its recent decline. BTC has reclaimed $40k gaining 2%, while ETH gained 1% to reach $2.2k. Bitcoin’s recent drop below the $40k mark appears to have been sparked by news that Mt. Gox is confirming Bitcoin addresses for paying back its creditors, potentially releasing a significant 142-200k BTC into the market. On a brighter note, the People’s Bank of China has unexpectedly reduced the Reserve Requirement Ratio by 50 basis points. Additionally, the Chinese government has proposed a substantial $278 billion plan to bolster Chinese stock markets. This news has led to a 7-8% increase in Chinese stocks from their lowest points, which may have also lent some support to riskier assets today, including cryptocurrencies. As mentioned in yesterday’s Crypto Comments, we are closely monitoring the upcoming FOMC meeting on January 31st, where further details are anticipated regarding the pace of balance sheet reduction, as well as the Quarterly Refunding Announcement from the US Treasury.

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MARKET UPDATE Crypto is broadly lower today as geopolitical conflict continues to weigh on risk assets, with BTC 5.34% falling to $60k and ETH 3.63% approaching the low $2,300s. Aptos (APT N/A% ) is one of the few gainers in the top 100 tokens as they have strengthened their presence in Japan via an acquisition of HashPalette, a Japanese NFT service provider and developer of Palette Chain. AAVE 5.03% is also showing slight gains following...

CRYPTO MARKET UPDATE Crypto prices have rebounded slightly following yesterday's sharp selloff, with BTC 5.34% climbing back above $61,000 and SOL 8.91% moving above $145, while ETH 3.63% is lagging, trading around $2,400. Among today's outperformers is SUI 7.64% , which appears resilient despite a $115 million token unlock yesterday. Oil is partially retracing its early rally, gold is lower on the day, and yields are moving higher, suggesting at least a temporary reversal of...

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