Bullish Insights – Weekly Market Recap

The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of September 12, 2022.

Bullish Exchange

This week’s peak trade volume (24h): September 14, 2022, $882,254,569

Crypto market highlights

• As of September 13th, 2022, crypto market's performance was largely mixed with Bitcoin up 0.2% and Ethereum down 2.3%. Bitcoin bulls will attempt to break through major resistance at $22,450 and $22,500 while bears eyeing out key support is at $21,800. With the ETH Merge anticipated to take place September 15, 4am UTC, the ETH/USD pair is holding above $1.7K.
• Carnage across US equity markets on September 14th, 2022 saw a ripple effect through to crypto markets as Bitcoin slumps by 9.2%. Inflation data that came in higher than expectations sent US equity markets on a downside correction, maintaining a risk-off sentiment across asset classes. The BTC/USD pair is faced with major resistance at $20,600 and major support at $20,000. Earlier in Asia hours, bears sent the pair below the $20K mark reaching a 24h low of $19,890 before bulls actively defended support.
• Mining Ethereum seemed more of a lucrative reward than mining Bitcoin in 2021 and 2022 as Ethereum miner revenue exceeded BTC miners by ~$1bn in both years. As observed below, in previous years, BTC miner revenue dominated ETH miner revenue in 2017 by $1bn, 2018 by $2bn, 2019 by $4bn, and in 2020 by $3bn.
• As of September 15th, 2022, a slight rebound was seen across the crypto market with Bitcoin up by 0.3% and Ethereum up by 2.0% post-merge. The BTC/USD pair is holding above major support at $20K, while bulls are eyeing out the $20,300 major resistance level.
• Historic day for the Ethereum community as the long anticipated Merge has successfully completed. On September 15 at 06:42 UTC at Block 15537393, the merge of Ethereum Mainnet and Beacon Chain was deployed meaning a bid farewell to the PoW consensus mechanism. So what's next for Ethereum's PoS network? The Surge. The next update will be focused on using rollups to improve Ethereum's scalability through sharding. One down, four to go!
• Ethereum open interest has reached $5.89bn in USD terms (as of September 14th, 2022) while the funding rate has been dominantly negative since August 20, 2022.
• According to the Chainalysis 2022 Global Crypto Adoption Index Report, Vietnam came in first with the highest index score ahead of the Philippines, Ukraine, India, and the United States. Central and Southern Asia overtook Latin America recently accounting for over 30% of monthly web traffic flow to P2P crypto platforms.
• As of September 16th, all sectors are in the red with Currencies and Miscellaneous ranking as the top performers at -1.49% and -1.51% respectively. The top 2 worst performers were Smart Contract Platforms and Ecosystems, returning -5.76% and -4.23%, respectively. Within Currencies, $USDN outperformed at +2.97%. Within Smart Contract Platforms, $ETC was the biggest detractor at -11.7%.

Macro market highlights

• US equity markets rallied in Monday's trading session ahead of the anticipated inflation report. The S&P 500 rose by 1.1%, the Dow was up by 0.7% and the Nasdaq Composite climbed 1.3%.
• Tuesday's close marked the worst day of losses since June 11, 2020 for US equity markets as investors brace for higher rates post inflation data. Inflation came in at 8.3% in August, higher than expectations of 8.1%. The S&P 500 fell by 4.3%, the Dow was down by 3.9%, and the Nasdaq Composite retreated by 5.2%.
• After Tuesday's mass sell-off, US equity markets recovered some losses as dip buyers emerged in Wednesday's trading session. The S&P 500 rose by 0.3%, the Dow was up by 0.1% and the Nasdaq Composite advanced by 0.7%.
• US equity markets closed lower in Thursday's session, extending losses. US retail sales rose 0.3% in August and new jobless claims fell by 5,000 to 213,000. The S&P 500 dipped by 1.1%, the Dow fell by 0.6% and the Nasdaq Composite retreated by 1.4%.

Key events this week:

• US CPI, Tuesday - Inflation at 8.3% in August
• UK CPI, Wednesday - Inflation at 9.9% in August
• US PPI, Wednesday - PPI -0.1% in August
• US retail sales, initial jobless claims, Thursday - US retail sales rose 0.3% in August. New jobless claims fell by 5,000 to 213,000 (week end of September 10th).

Other updates

• Tether, $USDT has now launched on the NEAR network. The protocol currently has about 700 projects built on the platform. (Source: tether)
• A local newspaper in South Korea earlier reported that a warrant by a South Korean court was issued for the arrest of Terra founder, Do Kwon and five others. (Source: Bloomberg)
• Ethereum’s merge was successfully deployed with Vitalik Buterin stating that it would “…reduce worldwide energy consumption by 0.2%.”
• The Cardano Foundation has announced a partnership with wine agency Georgian National Wine Agency to ensure authenticity and quality of Georgian wine using the Cardano blockchain. (Source: Cardano Foundation)
• The SEC of Thailand has banned crypto firms from offering depository services and staking activities. (Source: CoinDesk)
• Exchanges Coinbase, Kraken, and Binance now make up 14.45%, 8.3% and 6.58% of Ethereum staked nodes in the network. Lido has the largest stake at 30.2%. The concentration in these exchanges has caused some concern in centralization censorship. (Source: BTC.com, Cointelegraph)

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