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 November 7, 2022.

Bullish Exchange

This week’s peak trade volume (24h): November 9 2022, $1,802,490,698 (99,051 BTC)

Crypto market highlights

• Lookonchain provided an analysis on 56 wallet addresses held by Alameda filtering for tokens worth $1 million and above. Speculation in the community is that these tokens could be liquidated any time should the hedge fund run into liquidity issues.
• In light of the news surrounding Binance and FTX this week, we released a report outlining how the events unfolded. 
• As of November 10, the blood-bath continues across the crypto market with Bitcoin down 8.4% and Ethereum down 6.0%. BNB/USD pair is up 70.3% after CZ tweeted and reassured users that the SAFU insurance fund has topped up $1bn. The BTC/USD pair saw a volatile 24h with a high of $18,241 and low of $15,554. Bulls broke through immediate resistance at $16,400 and $16,650 with the next level of major resistance at $18,000.
• BTC open interest volume across all exchanges excluding FTX has seen an increase of 40K BTC on November 10.
• Amid the blood-bath seen across the crypto market, the number of addresses holding 1+ BTC has reached an all-time high of 921,578.

Macro market highlights

• US equity markets closed last week on a high note after the S&P 500 slid for four-consecutive days. The S&P 500 was up by 1.4%, the Dow rose by 1.3%, and the Nasdaq Composite climbed 1.3%.
• US equity markets closed higher in Monday's trading session ahead of mid-term elections. The S&P 500 was up by 1.0%, the Dow rose by 1.3%, and the Nasdaq Composite gained 0.9%.
• US equity markets sank in Wednesday's trading session ahead of Thursday's CPI release. The S&P 500 fell by 2.1%, the Dow dipped by 2.0%, and the Nasdaq Composite retreated 2.5%.
• US equity markets saw its biggest rally since 2020 in Thursday’s trading session after inflation figures came in at 7.7% YoY, below expectations. The S&P 500 rose by 5.5%, the Dow climbed by 3.7%, and the Nasdaq Composite advanced by 7.4%. The yield on 10-year Treasuries declined 27 basis points to 3.82%.

Other updates

• Recent headlines have highlighted Alameda Research and its potential insolvency rumors driving down the price of $FTT by almost 5% at the time of writing. Tracing back before the Twitter war, to the start of when these allegations began; Coindesk released an article on November 2, pointing at Alameda's Q2, 2022 "leaked" balance sheet citing the company had $14.6bn in assets and $8bn in liabilities. The biggest concern the article highlighted was under the asset component of a heavily dominated FTT holding that Alameda may have borrowed against. Subsequently, other tokens held on its balance sheet SOL, SERUM, MAPS, OXY, and FIDA also came into question. All in all, the biggest concern was the ability for the hedge fund to repay its debt obligations should the token price of its largest denominated asset fall.
• The BitDAO community has issued an ultimatum to Alameda, either they reveal the on-chain address where 100mn BIT tokens are promised to be unsold for 3 years or the community may put up a vote to see what they will do with the 3,362,315 FTT tokens held in the BitDAO treasury. Alameda has 24 hours to respond. (Source: BitDAO)
• CZ tweeted that “Binance has about $8 billion in ETH in our cold wallets 1 & 2 signaling to users that the exchange does not lend out user assets and that they are just “custodians.”
• November 7, CZ tweeted a whale alert of a transfer worth $584 million FTT to Binance exchange.
• Binance pulled out of the FTX deal citing concerns around the mismanagement of customer funds and potential regulatory headwinds. 
• USDD, the algorithmic stablecoin backed by Tron founder, Justin Sun, has dipped below its dollar peg and is exhibiting signs of downward pressure de-pegging. (Source: CoinDesk)
• VC firm Sequoia Capital will mark down their $214mn FTX investment down to zero in a letter that was sent out to its partners. (Source: COINTELEGRAPH)
• Huobi exchange released a statement saying they will honor TRX, BTT, JST, SUN, and HT withdrawals from FTX should FTX withdrawals fail. (Source: Huobi)
• BlockFi announced a pause in customer withdrawals and noted to clients to not deposit into their BlockFi wallets.
• The DCCPA bill that was heavily backed by SBF will still advance as US senators John Boozman and Debbie Stabenow commit to publishing the final version despite FTX’s recent events. (Source: COINTELEGRAPH)
• According to a Reuters article, SBF is in discussion to raise a $9.4bn rescue package. The alleged raise from Tron founder, Justin Sun, OKX exchange, and Tether is expected to be at $1bn each. (Source: Reuters)

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