OKX & Gate Users Experience Service Delays; DCG Related Assets Sold Off, Prompting Fresh FUD

19 Dec 2022, Monday

2:30 AM

BTC	ETH	S&P Futures 500
$16,777.25	$1,189.00	$3,882.25
(-3.70%)	(-6.62%)	(-1.04%)
Note: All percentages shown above are referenced to the previous business work day's 09:00 (GMT+8)

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Our Daily View

What We Are Covering Today

Assets faded from CPI euphoria to end week lower; COVID in China weigh on local sentiment (more in Macro & TradFi)
DCG related portfolio dumped double digit across the board over the weekend, leading to more concern over its imminent liquidity crunch (more in DeFi & CeFi)
OKX observed service delays, PancakeSwap on Aptos now lets users stake LP tokens for $CAKE rewards (more in DeFi & CeFi)
ETH balance on exchanges falls as preference for self custody continues increasing (more in On-Chain)
On-chain data show weak end of year sentiment (more in Crypto Derivatives)
BTC and ETH prices collapse on Saturday morning (more in Crypto Technical Analysis)

Macro & TradFi

Last week saw markets turning from CPI euphoria to full-blown hawkish central bank fear mode, leaving stocks down on the week. Asian shares also are set to trade lower amid Wall Street weakness. Into Christmas week, JPY kicked off strong as PM Kishida is reported to possibly alter BOJ policy over its 2% price target. On the fund flows front, world’s biggest asset managers are on track to sell stocks vs buy bonds to rebalance their asset allocation mix to 60% equity / 40% bonds; Bloomberg estimated almost $100bn of equities might get dumped during the course of this exercise. China’s Central Economic Work Conference wrapped up amid heightened COVID cases and fatality suggested by anecdotal evidences; the agenda set by the conference emphasized on stabilizing, rather than instigating, the real estate market, and encouraged private-owned enterprises to take part in the economy.

US stock indices all closed lower last Friday, with NASDAQ down 1.15%, S&P down 1.25% and DOW down 0.8%. All three indices closed last week 1.6-2.7% lower. US Treasury bond yields were mostly stable, with 2s10s inversion flattening out a tad. Oil prices fell more than 2% in both benchmarks. This week on the data front, US GDP is due on Thursday while PCE is expected on Friday.

DeFi & CeFi

Crypto-exchange OKX observed service delays
Gate.io users are experiencing sluggish deposits and withdrawals
DCG related portfolio dumped double digit across the board over the weekend, leading to more concern over its imminent liquidity crunch
Argentina's San Luis province approved a law on stablecoin pegged to USD
Game developer, Wemade unveiled WeKonomy and its teaser website
PancakeSwap on Aptos now lets users stake LP tokens for $CAKE rewards
Contango, a DEX offering expirable contracts, Beta launch on Arbitrum
Mazars will temporarily stop working with Crypto.com, KuCoin, and Binance

WeKonomy uses numerous mainnets to provide DeFi, NFT, and metaverse services to users. Interlocking services inside WeKonomy promotes effective administration and a complete economic framework. Close service coordination from design to operation creates synergy.

Last Friday, assets backed by DCG saw a huge sellf off. In a tweet by @Visual0x, tokens such as Filecoin, Ethereum classic, Stacks, Zcash, The Graph have been down double digits. Some speculate that DCG is behind this to raise liquidity.

Contango, a DEX, offers three trading pairs—ETH/DAI, ETH/USDC, and DAI/USDC—and two maturities. Contango offers expirable contracts without an order book or liquidity pools, allowing traders to purchase or sell assets at a specified date in the future and price. When a trader establishes a position on Contango, the protocol borrows on the fixed-rate market, swaps on the spot market, and lends back, providing physical delivery at expiration.

On-Chain

Looking on-chain, the BTC number of addresses holding 0.1+ Coins just reached an ATH of 4,172,863, as more and more investors continue to accumulate BTC despite recent crypto headwinds.

Elsewhere, the ETH balance on exchanges just reached a 4-year low of 19,391,857.294 ETH, which can be indicative of an increasing desire for self custody as more investors withdraw their ETH from exchanges and hold them in their own wallets.

Crypto Derivatives

BTC 7-day and 30-day ATM IV rose from 40 to 52 and 49 to 56 respectively
ETH 7-day and 30-day ATM IV rose from 52 to 65 and 63 to 65 respectively
BTC funding rate remain positive while ETH’s turn negative

BTC sentiment turned more bearish on over the weekends as the put/call ratio rose from 0.89 to 1.26.

On the flows side, the top 2 most popular traded instruments for ETH in the past 24 hours are both put options and the top strategy traded is bear put spreads.

As for BTC, 23DEC $17,000 calls and $16,000 are tied for the most traded instruments and the top strategy traded is a long strangle. It seems that traders are trying to ride the wave of volatility and profit from major price movement in BTC.