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Bullish Insights Weekly Market Recap

Oct 19, 2023 3 min read

The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of October 16, 2023.

Bullish exchange

This week’s peak exchange trade volume (24h): $1,366,898,932 (48,194 BTC) on October 17, 2023.

This week’s headlines

  • After sunsetting Lido on Solana, the protocol’s community has proposed sunsetting Lido on Polygon citing that after Polygon’s technical upgrade there was brand risk involved due to a bug that halted withdrawals for 25 days. In addition the Lido proposal notes that there is no other liquid staking provider outside of one other LST provider and lacklustre in revenue.
  • Tesla has maintained its Bitcoin holdings at $184 million for the fifth consecutive quarter, according to its Q3 2023 results. While the company has not bought or sold any Bitcoin since Q2 2022, it has reportedly doubled its computing power for AI projects, including the training of its humanoid robot Optimus.
  • The Fantom Foundation has confirmed ~$550,000 worth of the foundation’s funds have been stolen due to an exploit. They also assured the community that 99% of foundation funds remain secured
  • The Lido on Solana protocol will be phased out in the upcoming months following a community vote and extensive discussions in the DAO forum. The vote was to either continue developing Lido on Solana with financial backing from Lido DAO, or to sunset the protocol. The latter was voted as the best course of action by the Lido DAO members.
  • Australia's Treasury has announced a pivotal initiative to regulate the rapidly growing cryptocurrency industry in the country. Exchanges holding certain asset levels will be required to secure an Australian Financial Services License. The proposed legislation is anticipated to be released by 2024. A consultation process is currently underway, inviting feedback from stakeholders and the general public on 32 primary regulatory topics.
  • Sberbank, one of Russia's largest bank, has confirmed its involvement in the digital ruble pilot program. This move comes after the digital ruble bill was signed into law by President Putin, marking a significant step towards Russia's goal of launching its own digital currency. Given Sberbank's broad range of digital services, there's potential for the digital ruble to be integrated into these platforms, similar to Tencent's incorporation of e-CNY payment options in WeChat.
  • The U.S. Federal Government is reportedly holding approximately $5 billion in Bitcoin, according to a recent report, making it one of the world's largest Bitcoin holders. The U.S. seized over 200,000 bitcoins, primarily from cybercriminals and darknet markets. These digital assets are held in encrypted hardware wallets owned by various government agencies, including the U.S. Treasury, the Internal Revenue Service (IRS), and the Justice Department.

Equity markets

  • Investors fled to safe haven assets like gold, utility stocks and US Treasuries in Friday’s session following threatening border conflict in the Middle East.
  • U.S. stocks rebounded in Monday trading session after Friday’s flight to safe-haven assets.
  • U.S. retail sales data came in stronger than expected in September up 0.7% MoM, meanwhile bond yields hit a decade all-time high in Tuesday’s session.
  • 10-year US Treasury yield rose to its highest level since July 2007 at 4.90% in Wednesday’s session dampening US equity markets which has already seen pressure leading up to the Gaza conflict. The S&P 500 fell 1.3%, Meanwhile China GDP grew 4.9% YoY for Q3, 2023.

Crypto market highlights

  • Ethereum fees have reached their lowest level since April 2020. This reduction can be attributed to the shift towards layer 2 solutions and the declining use of applications on the Mainnet.
  • The Turkish Lira has established itself as the leading fiat trading pair on Binance, growing its market share from 9% in early 2021 to a peak of 81% in August, before slightly pulling back in October. Meanwhile, the Euro continues to retain its position as the second most dominant fiat currency in terms of market share.
  • Bitcoin dominance climbed to 52.1, this is the highest level year-to-date and since April 2021.
  • According to Chainalysis, the United Kingdom ranks as the leading cryptocurrency economy in terms of transaction volume in Central, Northern, and Western Europe (CNWE), and the third largest globally after the US and India. The CNWE region, which saw $1 trillion in on-chain value between July 2022 and June 2023, is the second largest crypto economy worldwide.

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