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Bullish Insights – Weekly Market Recap

Oct 14, 2022 3 min read

The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of October 10, 2022.

Bullish Exchange

This week’s peak trade volume (24h): October 11, 2022, $642,661,531 (32,491 BTC)

Crypto market highlights
  • After Binance announced that it would convert USDC, USDP, and TUSD balances on the exchange to BUSD back in September, the market cap of $BUSD rose in excess of 10% over a one month period.
  • Bitcoin's mining difficulty has reached an all-time high at 35.61T, breaking its previous record of 32.05T back in September, 2022.
  • Altcoin season measures the performance of the top 50 altcoin's performance against Bitcoin over a 90-day period. Currently, we are not in Altcoin Season as only 65% of altcoins are outperforming Bitcoin.
  • Last week, digital asset investment total flows saw $5mn worth of outflows. Bitcoin saw the majority of inflows at $11.7mn while Ethereum saw outflows of $2.2mn.
  • According to Chainalysis, month-to-date, there has been $718mn worth of stolen funds from hacking activity on DeFi 
  • Over a four-day period as at October 12, Ethereum turned deflationary. A total of 11.2K ETH was burned versus a total of 6.5K ETH minted in the same period. Increased activity was observed with the launch of a new project by the Fair Crypto Foundation. Users were able to mint $XEN tokens for free bearing only gas fees. The protocol was offering 20% APY for staked assets but was subsequently subject to a minting exploit and Sybil attack protocols.
  • This marks the biggest month, year-to-date in terms of value hacked. In 2021, hackers stole $3bn worth of assets with 2022 nearing that amount.
Macro market highlights
  • US equity markets dipped in last Friday's trading session after the unemployment rate fell from 3.7% to 3.5%, with traders interpreting it as bad news with the possibility of further tightening by the Fed. The S&P 500 fell by 2.8%, the Dow was down by 2.1% and the Nasdaq Composite detracted by 3.8%.
  • US equity markets slid in Tuesday's trading session with tech stocks worst hit. The S&P 500 fell by 0.7%, the Dow was down by 0.1%, and the Nasdaq Composite detracted by 1.1%.
  • Investor sentiment remains dampened ahead of Thursday's CPI reading, the S&P 500 fell by 0.3%, the Dow was down by 0.1%, and the Nasdaq Composite saw little change.
  • Investors turned risk on in Thursday's trading session after inflation figures came in at 8.2% YoY for September compared to 8.3% YoY in August. The S&P 500 rose by 2.6%, the Dow was up by 2.8% and the Nasdaq Composite advanced 2.2%.
Other updates
  • After 11 months in the job, OpenSea’s CFO, Brian Roberts has announced he will step down.
  • There has been an alleged hack on the Mango Protocol (a DeFi platform on Solana). The hacker has reportedly drained over $100mn from the protocol.
  • Yuga Labs, the company behind BAYC is allegedly being investigated by the SEC for breach in the issuing of unregistered securities.  (Source: Decrypt)
  • Coin Center, a cryptocurrency advocacy group, has filed a case against the US Treasury Department for its sanctions on protocol Tornado Cash. (Source: CRYPTO BRIEFING)
  • STAX Finance protocol has been exploited where the hacker took 321,154 xLP tokens from a staking contract and swapped it for $TEMPLE and $FRAX tokens. 
  • Tether has announced that it has removed commercial paper from its holdings and replaced the asset exposure to US T-bills. The company has been slowly reducing its exposure over the months and on September 30, announced its commercial paper holding to be below $50mn. (Source: Tether)

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