Binance.US Acquires Voyager Assets With Winning Bid; OKX Resumes Services And Promises To Reimburse Affected Customers

20 Dec 2022, Tuesday

3:00 AM

Binance.US Acquires Voyager Assets With Winning Bid; OKX Resumes Services And Promises To Reimburse Affected Customers

BTC

ETH

S&P 500 Futures

$16,470.25

$1,173.50

$3,853.75

(-1.83%)

 (-1.31%)

(-0.79%)

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

GM Treehouser 🌳

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Our Daily View

What We Are Covering Today

  • Indices continue decline as Fed policy weighs on markets (more in Macro & TradFi)
  • Binance.US’s bid for Voyager’s assets highest at $1.022 billion, OKX resumes trading and to compensate affected users (more in DeFi & CeFi)
  • ETH balance on exchanges falls as preference for self custody continues increasing (more in On-Chain)
  • ETH traders look to profit from short-term price movement to the upside with calendar call spread (more in Crypto Derivatives)
  • BTC breaks lower, ETH attempts a break out (more in Crypto Technical Analysis)

Macro & TradFi

GM! Stocks and bonds both sold off as markets battle around Fed’s rate path next year, with big tech dragging indices lower. In Asia, BOJ is expected to leave policy unchanged today with the market eagerly waiting for Governor Kuroda’s comment on inflation. In China, commercial banks might be cutting the 5-year loan prime rate by 10bps to 4.2% according to Bloomberg Economics. Meanwhile in the emerging markets credit universe, distressed debt investors are having a party as only $1.3bn out of $118bn sovereign bonds from non-defaulted EMs that are trading at distressed levels will be due next year, leaving much alpha to be generated from security selection.

US stocks closed lower for the fourth straight session, with NASDAQ falling almost 10% since the CPI euphoria. The tech index lost 1.19%, S&P 0.75% and DOW 0.39%. US Treasury bonds sold off across the curve, seeing yields shooting up by more than 10bps and curve steepening on the longer end. As 10-year treasury yields battle the key 3.5%, which is set as target price for end of 2023 by many investment banks, macro hedge funds are looking to make another blowout year after two handsome years of return in a row. Oil price rose in both WTI and Brent.

DeFi & CeFi

  • Nexon Finance testnet now live on zkSync 2.0.
  • Gate.io deposits and withdrawals normalized
  • OKX resumes trading, to reimburse users & deploy multi cloud
  • Axelar creates $60M startup ecosystem program
  • Three Arrows Capital reportedly withdrew 2,000 $ETH from Binance.
  • On December 20, 2022, Ren 1.0 will shut down
  • Binance acquires Indonesian crypto exchange Tokocrypto, CoinDesk reports.
  • Voyager announces Binance.US asset acquisition agreement

After reviewing strategic alternatives, Binance.US's proposal for Voyager's assets was the highest and best, maximizing value provided to its creditors in a timely manner. The fair market value of Voyager's cryptocurrency portfolio at a future date, estimated at $1.002 billion at current market pricing, plus $20 million of incremental value makes it at $1.022 billion. According to court-approved disbursements and platform capabilities, Binance.US will return crypto to customers in kind.

OKX said it would contact clients who may have lost money due to the outage to negotiate compensation and will be liable for any platform-related damages. OKX blamed a single cloud service provider for the service disruption. To deploy its key services on multiple clouds, the exchange will use multi cloud deployment. Any particular cloud service provider problem won't impact OKX's core services after implementation.

On-Chain

Looking on-chain, the MVRV model from Santiment indicates that after the massive decline in crypto markets as a whole during the past few days, several projects are now at historical pain points where bounces occur, which can be indicative of a good price level to accumulate some altcoins.

Elsewhere, the number of BTC unique addresses across multiple supply amounts has been constantly growing, which can be indicative of investors that are still accumulating BTC despite market conditions.

Crypto Derivatives

  • BTC and ETH funding rate remains positive
  • BTC 7-day and 30-day ATM IV dropped from 52 to 46 and 56 to 54
  • ETH 7-day ATM IV rose fell from 65 to 61 and its 30-day ATM IV rose from 65 to 66

On the flow side, the 3 most traded instruments for ETH are all call options with more than 3 months DTE. The most traded strategy is a reverse call calendar spread where traders buy a short-term option and sell a long-term option with the same strike price.

For BTC, the most traded strategy in the past 24 hours is the bull call spread which is evident from the graph as the daily volume traded seemed to come in pairs.

The FTX saga led to less liquidity in the options market as many traders are less willing to trade in this volatile market. Market markers now make up a significant percentage of the options volume.

Crypto Technical Analysis

Looking at TA, BTC has fallen further after it was hovering at the $16.7K level. RSI on the H4 has taken another dip into oversold territory as price wicked to $16.2K. The next level of support looks to be at $16K if it is not able to reclaimed $16.7K.

Looking at ETH, price briefly wicked to $1.14K early this morning and now looks to be making a bounce up to $1.2K. With H4 RSI in a bullish divergence ETH looks to be making an attempt to higher levels. Its first level to reclaim would be $1.2K.

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Daily Readings

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Yours sincerely,
Treehouse Research 🌳