Crypto Research

EARNINGS REVISITED Below is a chart that is both slightly jarring and fairly intuitive at the same time. The jarring aspect is obviously the rapid ascent of the expected terminal fed funds rate over the past six months. The intuitive part is that bitcoin does not like tightening monetary conditions and has steadily declined in direct opposition to the expected terminal rate. Note that we are using the futures market...

Funding pulled back this week, declining from $659M to $191M, with the number of deals declining from 24 to 18. Once again, infrastructure was the most heavily funded segment of the week – receiving nearly 75% of all funding at $142M. One of the most notable trends this year has been how, although crypto prices have declined, VCs are not slowing down on their crypto infrastructure investments. The segment typically...

Could Bitcoin get to 13K? Is Polygon looking more favorable than Ethereum? Get the full crypto technical analysis, including key resistance levels, from our Head of Technical Strategy in this week’s crypto chat. GET THE LATEST CRYPTO DAILY REPORT _*Recorded October 17, 2022_

Funding was the highest it’s been in months, shooting up from $160M last week to $659M this week. Not surprisingly, the bulk of this funding ($416M) came from infrastructure, which has been the strongest segment for most of 2022. Nine of this week’s 24 deals were infrastructure, the two standouts being Homa and Copper Technologies, which raised $100M and $196M, respectively. Interestingly, DeFi accounted for $216M of funding this week,...

CPI STILL HOT For the second consecutive month, inflation was much hotter than analysts had anticipated. Despite headline CPI easing for the third consecutive month, the headline figure of 8.2% came in above the market consensus of 8.1%, and Core CPI accelerated to 6.6%, the highest in 40 years. Despite some relief in goods inflation, the numbers were not highly constructive for risk markets (or so it would seem). _Source:...

MACRO UPDATE The narrative in macro-land skewed negative this week until a strong jobs report on Friday morning.JOLTs data showed a big surprise to the downside, as job openings declined 10% in August. A job opening total of 10 million was materially lower than the 11 million consensus estimate and was the most significant 1-month decline since the start of COVID. Fewer job openings suggested a softening labor market.ISM Manufacturing...

Funding for this week has seen a dramatic decrease compared to last week. Total funding fell 53% to $154 million compared to $328 million last week. Web3 was the winning category of funding deals representing 75% of all capital raised, breaking the pattern of infrastructure being the dominant category over the prior two weeks. Horizon Blockchain Games tied for the largest deal this week, raising $40 million in a Series-A deal....

EXECUTIVE SUMMARYGROWING DEMAND FOR LAYER 1 BLOCK SPACE. Through 2021, the demand for Ethereum block space has exploded on all metrics. Post-merge, Ethereum will attempt to scale via execution layers, while alternate Layer 1s might continue gaining market share on different use cases.BRIDGING WEB 2 TO WEB 3 WITH HYBRID COMPUTE. Boba’s hybrid compute technology brings the decentralization of Web 3 to the compute power of Web 2, while possessing...

Regulation through enforcement is often referenced when it comes to crypto. Walter Teng outlines the latest charges against Ooki DAO and how the outcome could set a precedent for DAOs moving forward. CRYPTO DAILY REPORT: CRYPTO DAILY REPORT – OCTOBER 3 _*Recorded October 4, 2022_

EXECUTIVE SUMMARY Click Here for full report. Next week, we will host Off The Chain Capital (OTC) for an introductory webinar discussing their value-oriented fund which is well suited to capitalize on current market conditions. Off The Chain Capital is focused on outperforming Bitcoin while simultaneously cushioning downside risks. OTC has outperformed BTC in 8 of the last 12 quarters, capturing 97% of Bitcoin’s upward moves and only 48% of...

CRYPTO CONTINUES TO SHOW RELATIVE STRENGTH It was an eventful week in global macro (this is now the default opening line of every note), as consequential headlines rolled across the tape at a rapid clip. Among them:Signs of slowing demand appeared in Apple’s revised agreement with suppliers, and early signs of potential deflation were on display in Nike’s surging inventories.Despite this, the Fed’s preferred inflation figure, PCE, came in extra...