SBF Hinted At FTX Stablecoin; Google To Support Ethereum Nodes; Meta’s Stock Crashes 24%

28 Oct 2022, Friday

2:08 AM

BTC	ETH	S&P Futures 500
$20,271.00	$1,517.25	$3,799.50
(-2.36%)	(-2.79%)	(-1.51%)
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 👇

3… 2… 1… Arbitrum Liftoff!

Our Daily View

What We Are Covering Today

The European Central Bank hiked by 75bps to 1.5%; Tech stock rout continues as Meta sinks after disappointing results (more in Macro & TradFi)
Google introduces cloud-based blockchain node service on Ethereum; SBF mentioned that FTX is working on creating a stablecoin (more in DeFi & CeFi)
BTC hits 4 months high in trading volume and on-chain activity (more in On-Chain)
Block traders remain bullish according to Paradigm (more in Crypto Derivatives)
BTC and ETH lose steam during Thursday trading as they hold the line at key resistance-support levels (more in Crypto Technical Analysis)

Macro & TradFi

GM! The European Central Bank raised interest rates again on Thursday by 75 basis points to 1.5% - the highest rate since 2009. ECB President Christine Lagarde also cited that "we will have further rate increases in the future,” in its bid to fight off a historic surge in inflation. Elsewhere, the US economy expanded by an annualized 2.6% QoQ in Q3 2022, exceeding expectations of a 2.4% increase and rebounding from a contraction in the first half of the year. In addition, new orders for US manufactured durable goods increased 0.4% MoM in September, up from 0.2% in August although missing expectations of 0.6%.

US equities ended mixed as the S&P 500 was down -0.61%, the DJIA rose 0.61%, and the NASDAQ lost -1.63%. The tech-heavy NASDAQ underperformed as Meta reported another quarter of declining revenue, sending its stock down by more than 24% and shedding more than $65 billion in market cap. US 10 Year Treasury yields dipped 7bps to 3.93%. Lastly, WTI Crude Oil prices rose 0.5% to $88.67 a barrel amid reports that the price cap on Russian oil that had been proposed by G7 countries is on the verge of being effectively abandoned.

DeFi & CeFi

Google introduces cloud-based blockchain node service for Ethereum
Sam Bankman-Fried announces that FTX is working on creating a stablecoin
Consensys commits $2.4M annually to launch MetaMask Grants DAO
NFT marketplace LooksRare switches to optional royalties where 25% of protocol fees goes to creators
NEAR-based DEX, Spin launches perpetual contracts trading platform
Kava Network launches Kava 11 mainnet, with liquid staking live
Web3 payment company, Reap closes $40 million round led by Hashkey Capital

Google introduces cloud-based blockchain node service for Ethereum. The company said its Google Cloud Blockchain Node Engine would be a “fully managed node-hosting service that can minimize the need for node operations,” meaning that Google would be responsible for monitoring node activity and restarting them during outages. A node is a type of computer that runs a blockchain’s software to validate and store the history of transactions on a blockchain’s network. At the time of launch, Google will only be supporting Ethereum nodes.

FTX CEO Sam Bankman-Fried revealed that the crypto exchange is considering developing its own stablecoin in an interview with European publication The Big Whale. FTX is “trying to find the perfect partners” to work with, and its users may be “hearing something from us on that topic in the not-too-distant future,” Bankman-Fried said.

On-Chain

Santiment has noted that BTC's trading volume & address activity have both just hit 4-month highs, holding up better than most assets amidst the backdrop of falling prices.

The amount of BTC transferred on-chain has not decreased despite months of depressed price levels, as this figure continues to grow year over year (YoY). The amount of BTC transferred on-chain in 2022 growing by 18% YoY so far, suggesting that BTC adoption is still increasing.

Crypto Derivatives

Funding rate remains negative for BTC perps and positive for ETH perps
30-day IV decreases for BTC and ETH to 54.5% and 75.3% respectively
30-day 25d put skew increases in magnitude for BTC to -4.2% and turns negative for ETH to -0.62%

For futures, total liquidations yesterday amounted to $109.28M, of which 58.5% were long liquidations. BTC and ETH futures OI are also down 7.6% and 6.8% respectively.

On the options front, for BTC and ETH, Put-Call ratio has increased to 0.73 and 0.74 respectively. IV for both BTC and ETH has also dropped, mainly across the November expiries. Popular traded structures include the bull diagonal call spreads for BTC and call calendar spreads for ETH. Flows remain overall bullish for both BTC and ETH with covered calls being purchased through Paradigm.

Crypto Technical Analysis

Looking at TA, BTC fell 2.77% on Thursday as price retreated from its month highs. Price stopped just shy of 21K before coming back down to the recently broken resistance level of $20.2K. The H1 RSI has retreated from overbought condition to under 45. A close above $19.5K for BTC would mark a second consecutive green candle. Should BTC find support at $20.2K for the week, it would mark a strong milestone for bulls as BTC aims to reclaim $21K.

For ETH, price also retreated from monthly highs at $1,561. ETH fell 3.51% on Thursday finding itself at its resistance turn support level at $1,515. H1 RSI has taken a similar trajectory as BTC falling from extremely overbought levels to under 50. Bulls eye a close above $1,518 while the closest support below is around $1,364.

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

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

Try Harvest Now!

Daily Readings

TradFi

Crypto

Deal Flow

Yours sincerely,
Treehouse Research 🌳

Share