Bullish Insights Weekly Market Recap
Nov 23, 2023 • 4 min read
The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of November 20, 2023.
This week’s peak exchange trade volume (24h): $1,336,218,451 [43,130 BTC] on November 22, 2023.
This week’s headlines
- CZ, has been released on a $175 million bond after pleading guilty to violating the Bank Secrecy Act. The terms of Zhao's release include a stipulation that he must return to the U.S. 14 days prior to his sentencing hearing, scheduled for February 23, 2024.
- The UK Chancellor of the Exchequer, Jeremy Hunt, announced a government initiative in his Autumn Statement to expand the digital assets sector, including the implementation of the Digital Securities Sandbox (DSS). Set to commence in the first quarter of 2024, the DSS aims to encourage the adoption of digital assets across financial markets and represents a significant development in the evolution of the securities industry.
- Changpeng “CZ” Zhao, the founder of Binance, is reportedly stepping down as the company's CEO following a $4.3 billion settlement agreement with the U.S. Department of Justice (DOJ). CZ is expected to plead guilty to multiple charges associated with violating Anti-Money Laundering laws in a federal court in Seattle. Despite CZ retaining his majority stake in Binance as part of the plea deal, he will no longer be permitted to hold an executive role. The report adds that this plea deal does not affect ongoing litigation with the U.S. Securities and Exchange Commission initiated in June.
- Binance, is expected to exit the U.S., pay billions in fines, and appoint a five-year monitor to settle charges with the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Asset Control (OFAC). As part of these settlements, the exchange will pay $3.4 billion to FinCEN and $968 million to OFAC for violating the Bank Secrecy Act and sanctions programs. This is in addition to a $4.3 billion fine to the U.S. Department of Justice.
- Richard Teng, previously the Head of Regional Markets at Binance, has ascended to the role of CEO following the departure of Changpeng Zhao. Teng has held several executive positions at Binance and spent 13 years as the Director of Corporate Finance at Singapore's financial market regulator. After concluding his regulatory role in 2007, he joined Singapore Exchange as the Chief Regulatory Officer, and later served as the CEO of Abu Dhabi Global Market for six years before joining Binance.
- OpenAI has announced an agreement for Sam Altman to return as CEO, following his recent dismissal. As part of the agreement, the company will partly reconfigure its board of directors, with Bret Taylor, co-CEO of Salesforce, Larry Summers, former U.S. Treasury Secretary, and Quora CEO Adam D'Angelo set to join.
- Bullish has acquired CoinDesk from Digital Currency Group (DCG).
- The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Kraken, accusing it of blending customer funds and operating without proper registration. The SEC claims that Kraken acted as a broker, dealer, exchange, and clearing agency for crypto assets, which the agency views as securities contracts under U.S. law. Kraken, which allegedly mixed up to $33 billion of customer assets with its own, posing a significant risk to clients, disputes the SEC's allegations and plans to defend itself in court.
- Tether, the stablecoin issuer, has frozen approximately $225 million in USDT amid a U.S. Department of Justice investigation into a Southeast Asian human trafficking group. The syndicate allegedly used the frozen funds in a "pig butchering" romance scam. Tether collaborated with the crypto exchange OKX, the DOJ, and other U.S. law enforcement agencies in a months-long investigation leading to the freezing of the funds, and pledged to work with authorities to unfreeze any legitimate wallets inadvertently impacted.
- US equity markets closed in the green in Monday’s session with notable news coming from the tech sector. Microsoft announced that Sam Altman, the recently dismissed CEO of OpenAI, has been appointed to head its AI research group driving up Microsoft’s stock price. The S&P 500 saw a 0.7% increase, while the tech-focused Nasdaq Composite rose by 1.1%. The Dow Jones Industrial Average also climbed 0.6%.
- US equity markets largely retreated in Tuesday’s session after the Fed’s meeting minutes indicated a continued cautious approach to reeling in inflation. The S&P 500 fell 0.2% increase, while the tech-focused Nasdaq Composite dipped by 0.6%. The Dow Jones Industrial Average also fell by 0.2%.
- US equity markets rebounded ahead of the Thanksgiving holidays. Wednesday’s session saw fresh data signaling that US initial jobless claims fell to 209,000 for the week ended November 18. The S&P 500 climbed 0.4% , while the Nasdaq Composite rose by 0.5% and the Dow Jones Industrial Average advanced by 0.5%.
Crypto market highlights
- According to Glassnode’s HODL waves that measure the age of coin supply, ~88% of Bitcoin supply has not moved in the past 3+ months. Across the wave bands, the 2Y-3Y, 5Y to 7Y and 10+Y bands have seen a swell year-to-date, meaning bands in the previous age group have hodl’d and moved into the cooler waves
- Last week, for the eighth consecutive week, digital asset investment products saw another round of inflows at $176mn. Bitcoin saw majority of inflows of $154.7mn, Ethereum saw minor inflows of $3.3mn and short bitcoin also saw outflows of $8.5mn. Other alts like Solana, Cardano and Ripple saw inflows of $13.6mn, $0.8mn and $0.5mn respectively. By region, Canada and Germany saw the bulk of inflows at $97.7mn and $63.3mn respectively. The United States and Sweden saw the largest outflows by region of $19.2mn and $1.8mn respectively.
- For the first time, the proportion of Bitcoin supply that has remained dormant for at least a year has breached the 70% threshold. It appears on-chain data is pointing at stronger hodling behavior with supply becoming increasingly less active.