Here’s what happened in blockchain and crypto this week.
Global equities and cryptoassets look set to end the week on a strong note after a choppy session on Thursday amid weak tech earnings. Meta shares dropped by almost 25% and hit a 6-year low on Thursday while Amazon fell by 20% as both companies provided a weak outlook on Q4. Several macroeconomic indicators also came in weaker than expected this week, including US consumer confidence data and flash PMIs, signaling a more challenging economic environment. On the monetary policy front, both the the European Central Bank (ECB) and the Bank of Canada raised interest rates to the tune of 75 basis points and 50 basis points, respectively while the Fed is seen hiking to 5%. In other corporate news, Elon Musk’s $44 billion acquisition of Twitter was also in the spotlight this week, with the Tesla CEO immediately dismissing top executives.
Cryptoassets rebounded across the board this week in lockstep with the rally in equities. More than a third of the top-100 cryptoassets by market cap registered double-digit gains. Popular meme coin DOGE is up almost 45% this week on the back of news that Elon Musk has officially acquired Twitter. Musk has previously floated the idea of integrating the cryptoasset into Twitter. DOGE reclaimed levels last seen in August and recorded trading volume of more than $4 billion over the past 24 hours, according to data by Coin Gecko.
As BTC eyes a possible breakout above $21,000, the broader crypto market’s liquidations over the past day topped a massive $1 billion. Liquidations occur when a crypto exchange forcefully closes traders’ leveraged positions due to an insufficient margin. According to a tweet by Coinalyze, this week saw the largest amount of crypto short liquidations since July 2021. October has historically been bullish for Bitcoin, with monthly gains recorded ten times out of the last 13 years.
Meanwhile, recent data suggests that cryptoassets’ correlation to the Nasdaq is waning. Swiss bank UBS noted last month that BTC had shrugged off its “typical beta of 3x to major US stock indices” that fell twice as much in September. Conversely, BTC and ETH futures volumes have fallen as lower volatility points to capital is flowing elsewhere. Bitcoin futures volumes amount to just $667 billion so far this month, according to The Block’s data dashboard – a far cry from September’s $1.05 trillion.
The global cryptoasset market capitalization currently amounts to $1.045 trillion – up from $944 billion since Friday last week, with bitcoin accounting for 37.9%. Among the Top 30 cryptoassets by market cap, Dogecoin (DOGE) outperformed, gaining 44.7% over the week. During the same period, the price of bitcoin (BTC) increased by 8.7% to $20,650 while the price of ether (ETH) rose by 21.3% to $1,555. The total value locked (TVL) in DeFi sits at $54.9 billion – up from the $51.2 billion last week – with Ethereum accounting for about 58.2% of TVL.
This Week’s Headlines
Notable Deals and Fundraising
Manuel Trojovsky, Head of Crypto Investments & Research
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