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Bullish Insights Weekly Market Recap

Sep 1, 2023 3 min read

The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of August 27, 2023.

Bullish exchange

This week’s peak exchange trade volume (24h): $938,929,592 (15,081 BTC) on August 30, 2023.

This week’s headlines

  • Starknet recently had an important version update to 0.12.1. Users were required to upgrade their accounts beforehand. Accounts that weren’t upgraded became temporarily inaccessible but are now being restored, including $550k worth of funds. The upgrade is now reenabled, allowing users to regain account access.
  • Robinhood's Web3 wallet now supports Bitcoin and Dogecoin, allowing users to custody and transact with these cryptocurrencies. The wallet was initially launched with Polygon and Ethereum support, and later expanded to include layer-2s Arbitrum and Optimism.
  • SEBA Bank, a Swiss cryptocurrency bank, has received approval-in-principle from Hong Kong's securities regulator. This allows the bank to deal in securities, including crypto-related products, provide advisory services for securities and virtual assets, and offer asset management for traditional securities and virtual assets.
  • The EOS Network Foundation announced in a recent post that the token $EOS, received whitelist approval by the Japan Virtual and Crypto Asset Exchange Association. This will mean the token will be able to be traded on crypto exchanges regulated in Japan.
  • Greyscale has won its lawsuit against the US SEC after the ETF provider was denied from converting GBTC to an ETF.
  • The State of Rhode Island has approved a Currency Transmitter license to X (Twitter). This will allow the social media platform to store, transfer, and exchange Bitcoin and other digital assets on behalf of X users.
  • Memecoin Pepe saw a dump of 16 trillion $PEPE tokens ~$15mn when part of the founding team allegedly dumped on CEX venues OKX, Binance, Bybit and Kucoin. The token’s Twitter post noted that the multisig signer count was reduced to 2/8 allowing the perpetrators to transfer the tokens out of the multisig CEX wallet.
  • Balancer has confirmed a vulnerability attack on the protocol in a number of its V2 pools. The exploit accounts for ~$900k worth of TVL at risk.

Equity markets

  • Investors appeared optimistic after Powell's speech at Jackson Hole on Friday where he iterated the Fed would "proceed carefully" on future rate hikes.
  • Growth stocks led the rally in Tuesday’s session with US equity markets rising for the third-consecutive day.
  • The rally continues in US equity markets after closing in the green for the fourth-consecutive session. While job openings and consumer confidence data saw a decline, it did not dampen investor confidence in Wednesday’s session. The S&P 500 rose by 0.4%, the Dow was up by 0.1%, and the Nasdaq Composite advanced by 0.5%.

Crypto market highlights

  • The dominance of USDC's supply on the Ethereum network has decreased from 45% earlier in 2023 to less than 33% currently. Following its depegging in March, the supply of USDC has consistently declined and currently stands at 24 billion. In efforts to foster growth for the stablecoin, Coinbase's equity stake in Circle and the expansion of USDC to six new networks have been implemented.
  • Last week, digital asset investment products saw large outflows of $137mn, the biggest outflow since March 2023 when the SEC cracked down on the industry. Bitcoin saw majority of outflows of $149.4mn, Ethereum saw outflows of $16.8mn and short bitcoin also saw outflows of $4mn. Other alts like Ripple, Litecoin and Cardano saw inflows of $0.5mn, $0.4mn and $0.2mn respectively. By region, Brazil and France saw the bulk of inflows at $2.2mn and $1.2mn respectively. Germany and Canada saw the largest outflows by region of $68mn and $61.2mn respectively.
  • The correlation between Bitcoin and major US indices are at a three-month high. Bitcoin's correlation with the S&P 500 is 0.77 and with the Nasdaq 100 is 0.65 as of August 28, significantly higher than the inverse correlation seen last month on July 28 at -0.65 for the S&P 500 and -0.46 for the Nasdaq 100.

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