Andre Cronje Hints at Return to Crypto; JPMorgan Executes Its First Live Trade on Polygon Blockchain; Bank of England Signals For Smaller Increments of Rate Hikes

04 Nov 2022, Friday

2:50 AM

Andre Cronje Hints at Return to Crypto; JPMorgan Executes Its First Live Trade on Polygon Blockchain; Bank of England Signals For Smaller Increments of Rate Hikes



S&P 500 Futures







Note: All percentages shown above are referenced to the previous business work day's 09:00 (GMT+8)

GM Treehouser 🌳

Welcome to our Treehouse Daily newsletter (previously known as The Canopy Collective), where Treehouse brings you financial news and insights free daily! We believe you’ll find this helpful.

In case you have missed it, check out our latest insights piece 👇

Our Daily View

What We Are Covering Today

  • Strong job data continues to hurt markets; BoE raises rates by 75bps (more in Macro & TradFi)
  • Andre Cronje hints at return to crypto; JPMorgan executes first live trade on the Polygon Blockchain (more in DeFi & CeFi)
  • BTC's percentage supply last active 1+ years ago reached an ATH of 66.47% (more in On-Chain)
  • Option flows remain mixed as no clear directional bias is observed (more in Crypto Derivatives)
  • BTC and ETH holding onto short-term bull structure by a thread (more in Crypto Technical Analysis)

Macro & TradFi

Yesterday, the BoE moved in step with the Fed to raise interest rates by 75bps. In its speech, the central bank expressed more modest future interest rate targets than what markets expected causing the pound to weaken. Elsewhere, the G7 economies are in discussions on setting a fixed price as they finalize price caps on Russian oil this month. US job data continued to show signs of a stubbornly tight labour market as initial jobless claims came in at 217K vs 220K forecasts, and 1000 claims less than the previous week.

US equity markets sunk yesterday as the DJIA fell 0.46%, the S&P 500 down 1% and the Nasdaq down 1.73%. The stubbornly strong labour market spooked markets as it gave investors more reason to believe the Fed would continue its aggressive tightening. Interest rate sensitive tech stock saw more discounting as Apple, Google and Amazon slid more than 3%. 10Y treasury yields are trading close to their year highs, rising by 10bps since the start of the week.

DeFi & CeFi

  • WalletConnect closes $12.5M funding round with Coinbase Ventures
  • Andre Cronje hints at comeback to DeFi
  • PancakeSwap goes live on Aptos
  • NFT startup Courtyard closes $7M seed round with OpenSea ventures
  • Deribit announces resumption for withdrawals for $ETH, $BTC and $USDC; Users are to generate new deposit address
  • Stablecoin protocol Bluejay Finance looks to raise $5M from the sale of its governance token $BLU
  • JPMorgan used Polygon Blockchain to trade tokenized cash deposits as part of the Monetary Authority of Singapore (MAS) Project Guardian.

Andre Cronje, well-known for co-founding Yearn Finance and being a key contributor to the Fantom ecosystem, has hinted at his return after departing from crypto earlier this year in March. The veteran recently updated his socials such as adding “.ftm” to his Twitter handle and his position on LinkedIn to “Vice President of Memes” at the Fantom Foundation. The $FTM token added more than 15% upon the speculation that Andre Cronje will be involved in the Fantom ecosystem.

The Monetary Authority of Singapore (MAS) announced on November 2 that the first industry pilot under MAS’ Project Guardian that explores potential DeFi applications in wholesale funding markets has completed its first live trades. One of which was JPMorgan’s Onyx successful tokenization of the Singaporean Dollar deposits. This marks a momentous milestone for banks utilizing public blockchains.


ETH Number of Addresses Sending to Exchanges (7d MA) just reached a 5-year low of 346.851. This suggests an increase in reliance of on-chain DeFi wallets since its inception.

On the other hand, BTC's percentage supply that was last active 1+ years ago just reached an ATH of 66.47% which adds confluence that there is accumulation of it as a store of value during Bitcoin's price resilience over the last few months.

Crypto Derivatives

  • Funding rate remains positive on BTC and ETH
  • 30-day IV fell for BTC to 47.18%, while diving to 67.94% for ETH
  • 30-day 25d put skew increased for BTC and ETH to -4.02 % and 0.13% respectively.

For futures, total liquidations yesterday amounted to $89.2M, with 53.25% of that being short liquidations.

On the options front, IV fell across the board for BTC and ETH as price action remained relatively muted. The 24-hour put-call ratio for BTC and ETH increased to 0.296 and 0.559 respectively. The term structure for BTC and ETH are currently still in backwardation on the front end of the curve while in contango from 18 Nov onwards.

On the flow side, the dominant strategies in the past 24 hours for BTC have been the long straddle and the bear call spread. Flows were mixed for ETH, with the dominant strategies being the long strangle and the short strangle. These flows indicate that traders are not too confident on placing any directional bets just yet.

Crypto Technical Analysis

Looking at TA, BTC lost ground at key level of $20,283 yesterday but found support at 20K. Should price move lower, we could see BTC move to 19.5K. For the weekly candles, a close below $20,285 would signal a close below key levels suggesting a slowdown in bullish momentum.

Looking at ETH, price has retested the key level of $1.5K. Should price break below this, price may retreat to $1,364 given the large gap. On the weekly, a close below $1,561 and above $1.5K would suggest lower volatility over following week, but a close below $1.5K would suggest a break in the current bull structure and a possible reversal back into the September to October range.

Track. Monitor. Discover. Swap. All with Harvest.

The all-in-one DeFi portfolio management platform for the productive investor.

Try Harvest Now!

Daily Readings



Deal Flow

Yours sincerely,
Treehouse Research 🌳

© 2022 Treehouse. All rights reserved.