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 December 12, 2022.

Bullish Exchange

This week’s peak trade volume (24h): December 14, 2022, $434,418,803 (24,437 BTC)

Crypto market highlights

• Centralized exchanges saw record outflows this year in the month of November 2022 after the collapse of FTX saw increased investor scrutiny over CEX’s.
• As of December 13, when observing smart money flows on exchanges in the past 24 hours, there appears to be wallet movements with Wintermute shifting almost $150mn in USDC out of Coinbase into Binance. Other smart money wallets tagged as Jump Trading and Genesis Trading, however, are seeing withdrawals from Binance. Jump trading has withdrawn $8.99mn in ETH, $5.25mn in BUSD, and over $1mn in USDT off the Binance platform in the past 24 hours.
• On centralized exchanges, the trade volume % of altcoins has decreased post-FTX's collapse. The share of total trading volume for alts is at ~37%. During periods of market uncertainty, blue-chip tokens like BTC and ETH tend to rise in dominance as traders look at lower-beta alternatives that are most liquid.

Macro market highlights

• US equity markets closed lower in last Friday's session after producer-price data came in hotter than expected, up by 0.3% in November. The S&P 500 fell by 0.7%, the Dow dipped 0.9%, and the Nasdaq Composite retreated by 0.7%.
• U.S. equity markets saw a strong rebound on Monday, with investors turning bullish ahead of this week's CPI reading and FOMC rate decision. The S&P 500 rose by 1.4%, the Dow climbed 1.6%, and the Nasdaq Composite advanced by 1.3%.
• US stocks advanced on Tuesday after inflation figures came in at 7.1% YoY below the forecasted 7.3% YoY. The S&P 500 rose by 1.6%, the Dow climbed 0.8%, and the Nasdaq Composite advanced by 2.2%.

Other updates

• South Korean authorities continue their hunt for Do Kwon after being tipped off that he could be hiding in Serbia. A South Korean official told Chosun Media that “"Recently, we obtained intelligence that CEO Kwon was in Serbia, and it was found to be true." The South Korean Ministry of Finance is allegedly requesting the cooperation of the Serbian government in the pursuit for Kwon. (Source: COINTELEGRAPH)
• User API keys were leaked from a 3Commas exploit leading to certain Binance accounts experiencing large buy orders in certain altcoins, artificially manipulating the price. Binance stated that “This activity does not appear to be due to compromised accounts or stolen API keys; funds are SAFU.” The 3Commas exploit was allegedly due to a trading bot API key flaw. (Source: investing.com)
• #BinanceFUD is trending on Twitter after concerns of another FTX-like collapse on the exchange. USDC withdrawals were temporarily suspended on the BNB Beacon Chain and Ethereum chain. According to Nansen, in terms of ETH and ERC-20 tokens in the past 24 hours (as of December 13), Binance saw a netflow of -$1.6bn and -$1.9bn on a 7 days basis.
• According to Lookonchain, the wallet tagged as Justin Sun has transferred $33.91mn in BUSD to the Paxos treasury address, the same amount was withdrawn from Binance 9 hours ago including another sum of $15.43mn worth of USDT.
• SBF was arrested in the Bahamas as the US files criminal charges against the former FTX CEO. Charges included wire fraud, securities fraud, and money laundering. (Source: WSJ)
• Hong Kong’s financial regulator, the SFC issued a statement warning investors that virtual assets offering “deposits,” “savings,” “earnings,” or “staking” services may be in breach of the SFO (Securities and Futures Ordinance) should they not have appropriate licenses. (Source: SFC)
• According to Reuters Legal, SBF’s application for bail has been denied and he will be sent to the Bahamas Department of correction until February 8.

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