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 14, 2022.

Bullish Exchange

This week’s peak trade volume (24h): November 15, 2022, 137,555,731 (8,227 BTC)

Crypto market highlights

• As of November 13, 2022 the number of BTC left on exchanges was ~2,283,138 compared to November 7, 2022 of ~2,378,780 BTC.
• The volume on decentralized exchanges (DEXs) increased by almost 250% in the past 30-day period. On November 10, the daily volume spiked to $11.93bn. The last time DEXs saw total volume increase to over $10bn was back in May 12, 2022 during the LUNA collapse.
• According to a leaked balance sheet by the Financial Times, as of November 10, FTX's total outstanding liabilities was $8.86bn. Loans from LayerZero, Genesis, and BlockFi accounted for over half of total liabilities. On the asset side of the balance sheet, liquid assets only represented roughly 10% of liabilities post-bank run.
• Since the collapse of FTX, Binance has significantly captured its market share. A visible uptick in Binance's market share from below 60% at the beginning of November to currently ~70% as of November 16.
• As of November 17, the crypto market is seeing a rebound despite two-consecutive days of US equity markets retreating. Bitcoin is up 1.3% and Ethereum is up by 1.4%. The BTC/USD pair moved above immediate resistance of $16,500 and $16,600 with bulls attempting to clear major resistance at $17,000. After reaching a 24h high of $16,975 the pair saw a pull-back holding above major support at $16,350.
• Among the known list of creditors and investors exposed to FTX, Paradigm, Sequoia, and Temasek appear to have been the most affected. All three have an exposure of above $200mn each.

Macro market highlights

• US equity markets climbed higher in Friday's trading session after inflation readings showed a slowdown. The S&P 500 rose by 0.9%, the Dow climbed by 0.1%, and the Nasdaq Composite advanced by 1.9%.
• US equity markets saw a downturn in Monday's trading session after the Fed maintained its dovish stance on further rate hikes. The S&P 500 fell by 0.9%, the Dow dipped by 0.6%, and the Nasdaq Composite retreated by 1.1%.
• The US producer price index (PPI) for October came in at 8% YoY, below the 8.3% estimate. US equity markets saw an upturn in Tuesday's trading session following the data with the S&P 500 up by 0.9%, the Dow rose by 0.2%, and the Nasdaq Composite advanced by 1.5%.
• US equity markets showed a pull-back on Wednesday after US retail sales signaled an uptick by 1.3%. MoM above WSJ analyst expectations of a 1.2% increase. The S&P 500 fell by 0.8%, the Dow was down by 0.1%, and the Nasdaq Composite retreated by 1.5%.

Other updates

• CZ announced that Binance will form an industry recovery fund for projects that have been affected by the FTX crisis.
• Japanese regulators the Financial Services Agency (FSA) issued an order against FTX Japan to cease operations from November 10 to December 9 and that the exchange is not to accept any new deposits from customers. (Source: Bitcoin.com)
• AAX, Hong Kong-based exchange, halted customer withdrawals citing a “system upgrade…” and has denied rumors that the suspension was linked to the FTX collapse. (Source: COINTELEGRAPH)
• Skyrex confirmed an attack where users' API keys were compromised. (Source: Skyrex)
• SBF is exhibiting bizarre tweet behavior after leaving the community even more baffled with his latest “what happened” tweet in a thread posted with each letter.
• The New York Times published an interview with SBF after the collapse of FTX. The coverage by NYT did not seem to paint SBF as a bad actor but instead a billionaire whose net worth took a plunge. (Source: NYT)
• Alameda Research allegedly purchased 18 different tokens before FTX announced its listing during the period January 2021 to March 2022. (Source: Watcher.Guru)
• BlockFi has ceased withdrawals as well as activity on its platform and is allegedly looking into preparing for a chapter 11 after its “significant exposure” to FTX. (Source: WSJ)
• After the collapse of FTX, Salt, a crypto lending platform, has also paused its withdrawals and deposits. The company’s CEO Shawn Owen cited that they are "working diligently with our partners to secure a clear path forward and plan to be as transparent as possible.” (Source: The Block)
• Last week’s attacker of FTX stole ~228,523 ETH (~$288.8mn) becoming the 35th biggest holder of ETH. (Source: COINTELEGRAPH)
• Singapore’s state investment fund Temasek has released a statement claiming they had made a $210mn investment into the now bankrupt exchange FTX International accounting for 1% of the company. Due diligence on the exchange was conducted from February 2021 to October 2021, approximately 8 months before the fund made the investment. (Source: Temasek)
• A class action lawsuit has allegedly been filed against celebrities Larry David, Tom Brady, and others for their participation in promoting the exchange FTX. (Source: Decrypt)
• After suffering a bank run of almost half a billion dollars, crypto exchange Gemini tweeted to reassure customers that funds are available withdrawal and held as 1:1.
• Nayib Bukele, the president of El Salvador tweeted that the nation will be buying one Bitcoin a day.
• Binance US looks to bid for Voyager Digital after losing out to now bankrupt exchange FTX back in September’s auction. (Source: CoinDesk)
• In a letter issued to investors on Thursday, VC firm Multicoin expressed that FTX's downfall has depreciated its fund by 55% in November and that things may get worse before it gets better. (Source: CNBC)

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