FPG’s Weekly Perspective on Crypto Markets: Week of January 23rd, 2023
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Market Summary
The overall market narrative has evolved into one where market watchers watch out for signs of economic weakness that will bolster the case of a slowdown/ pause in hikes. The market strength that we have seen thus far is a combination of markets looking forward to a Fed pivot in hikes 6 months down the road and last week’s PBOC liquidity injection in the markets ahead of the Lunar New Year.
This coming week will be key for a number of companies including MSFT, TSLA, AT&T amidst a continuing spree of layoffs within the tech sector. On the crypto side of things with Genesis having filed for Chapter 11, what is left to be determined is how the DCG side of the saga will play out.
Watch out for US advance GDP on Thursday and core PCE out on Friday as the market will be watching for these 2 key data points
Notable Events and News
Wednesday 25 January
US- Crude Inventories
Thursday 26 January
US- Advance GDP
US- New Home Sales
Friday 27 January
US- Core PCE Index
Notable Events and News:
Binance Says Signature Bank Won’t Support Transactions for Crypto Exchange Customers of Less Than $100K
Signature Bank will not handle transactions of less than $100,000 for crypto exchange customers, according to a statement from exchange giant Binance in a move aimed at decreasing its AML risk exposure to the crypto industry.
Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
Crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals last November, according to bankruptcy court documents signed by interim CEO Derar Islim. At the time of 3AC going under, Genesis had $2.4 billion in outstanding loans to the fund, of which Genesis was able to recover just half, according to the filing.
Feds seize almost $700 million of FTX assets in Sam Bankman-Fried criminal case
Federal prosecutors seized nearly $700 million in cash and assets connected to Sam Bankman-Fried, primarily in the form of Robinhood shares that were owned by the FTX founder, a court filing revealed Friday.
SEC Charges Avraham Eisenberg with Manipulating Mango Markets’ “Governance Token” to Steal $116 Million of Crypto Assets
The Securities and Exchange Commission charged Avraham Eisenberg with orchestrating an attack on a crypto asset trading platform, Mango Markets, by manipulating the MNGO token, a so-called governance token that was offered and sold as a security.
Market Insights
Market Technicals and Blockchain Analysis
It’s been some time since we last reviewed Bitcoin’s MVRV ratio. Recently, it’s been accumulating within the “buy” zone of less than one for six months. The past weeks’ move has helped it exit the buy zone rather sharply. Historically this has served as a stark precursor of further market moves.
The exchange stablecoin ratio has also been trending upward since the middle of December indicating more BTC being accumulated.
Crypto majors continue their march up with BTC briefly hitting $23.3k and is now consolidating slightly below $23k. A new CME gap was also formed at $22.3k which could serve as a reasonable area of retracement when it does come. If the majors continue to consolidate along this zone, it would bode well for alt coins as funds are slowly rotated into the alts. One narrative to look at could be those with upcoming unlocks as markets speculate on a possible combination of bullish bounce and possible positive news to counteract the project’s token unlock.
Some of the more high profile ones include $DYDX and $SAND over the next few weeks, $AXS has already moved up ahead of its unlock. Watch out for possible bullish lead up prior to these unlock dates as markets speculate on such an angle.
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About Floating Point Group:
Floating Point Group is a crypto prime brokerage platform and agency trading desk for asset managers that removes the barriers and complications to access liquidity across a broad set of markets in order to deploy advanced cryptocurrency-centric strategies at scale. The company carries insurance for custodied cryptocurrencies and is regulated in the U.S.; FPG has also secured VASP registration in the Cayman Islands.
Floating Point Group is backed by Tribe Capital, Coinbase Ventures, Anthony Scaramucci, FAST by GettyLab, Borderless Capital, CapitalX, Formulate Ventures, BoxOne Ventures, Seabury Global Markets, AngelList’s Naval Ravikant, and a host of angel and institutional investors.
For more information, visit floating.group.
Disclaimer:
This communication should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any asset in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
