🥂 Good morning, today is Monday, Jan. 02, 2023.
Macro: The Japanese yen experienced modest growth as the new year began and some investors have taken out short-dollar positions. Meanwhile, Chinese equity bulls may see improvement in 2023, but market volatility may persist due to challenges such as Covid, US-China tensions, and the possibility of a global recession.
Crypto: Bitcoin, Ether, XRP, and Dogecoin have all seen slight increases, while Solana and Avalanche have experienced decreases. TONCoin stood out from the crowd with spectacular gains. U.S. markets are closed on Monday, with trading set to resume on Tuesday.
Topic of the Day: SushiSwap Revamps Tokenomics to Boost Liquidity and Decentralization
Notable Headlines: Italy’s Parliament has approved a 26% capital gains tax on crypto; Bahamas’ Securities Commission said it’s been holding on to more than $3.5 billion worth of FTX customer assets; Australia has overtaken El Salvador to become the fourth-largest hub for cryptocurrency ATMs…
Macro at a Glance
As the new year began, the Japanese yen experienced a modest but notable increase on Monday as traders considered the potential risks and rewards of further technical strength during the holiday season’s thin trading. The currency rose by as much as 0.3% to hit 130.77 per dollar in Tokyo, but chart watchers warn that a close below the 130.41 mark of the dollar-yen’s August low could lead to trouble for the pair in the future.
Some investors have even taken out short-dollar positions in anticipation of a potential break in the absence of regular market liquidity. The yen has been on the rise since October, likely due to government intervention and speculation about the Bank of Japan’s future policies. Many believe that the BOJ’s recent surprise move to adjust its yield curve control parameters is a sign that the bank’s ultra-easy monetary policy may be coming to a close.
On the other hand, Chinese equity bulls may finally see some improvement in 2023 if the country’s sudden reopening from Covid restrictions leads to a robust economic recovery.
The Hang Seng China Enterprises Index, which tracks Chinese companies listed in Hong Kong, suffered its worst year on record, with combined losses from equities traded on the mainland and in Hong Kong reaching $3.9 trillion. However, market experts predict that 2023 will be a better year, as authorities prioritize economic revival and offer more support to private enterprises.
It won’t be a smooth ride, however, as the nation faces challenges such as a messy Covid exit, ongoing US-China tensions, and the possibility of a global recession. Despite these hurdles, a growing number of Wall Street banks are becoming more optimistic about Chinese equities due to renewed economic optimism and attractive valuations.
Although the rebound has slowed in December due to concerns about rising infections, asset managers believe that any dips present a buying opportunity. China’s economy is expected to grow by 4.8% in 2023, thanks in part to the government’s loose monetary policy and supportive stance towards private businesses. However, tensions with the US and a struggling housing market could continue to cause market volatility.
💡 Today’s Markets at Jan. 02 00:22 UTC
BTC +0.35% at $16,596; Ether +0.21% at $1,198.
Asia: Japan -0.74%; Hong Kong -1.25%; China +0.15%; India -0.84%.
Europe: London -0.62%; Paris -1.52%; Frankfurt -1.05%.
US Spot Indices: Dow -0.22%; S&P -0.25%; Nasdaq -0.11%.
US Index Futures: Dow -0.27%; S&P -0.28%; Nasdaq -0.10%.
US Two-year Treasury up 6bps at 4.428%.
US Ten-year Treasury up 7bps at 3.880%.
UK Ten-year Gilt Bond unchanged at 3.669%.
US Dollar Index -0.50% at 103.12.
FX in 24hrs: GBP: +0.27%; EUR: +0.36%; JPY: +1.43%; CNY: +0.94%.
Gold +0.46% at 1,824; Light Crude +2.07% at 80.26.
🧠 Catalysts this week
Tuesday: China Caixin Manufacturing PMI, Germany Inflation Rate
Wednesday: France Inflation Rate, US ISM Manufacturing PMI, US JOLTs Job Openings, FOMC Minutes
Thursday: Japan Consumer Confidence, Germany Balance of Trade, Italy Inflation Rate, Canada Balance of Trade, US Balance of Trade
Friday: Eurozone Inflation Rate, US Non Farm Payrolls, US ISM Non-Manufacturing PMI
Crypto Daily Digest
As the new year kicks off, the top 20 cryptocurrencies have seen slight movements in their values but have mostly been flat since Friday.
Bitcoin has seen a small 0.38% increase to reach 16,589, while Ether has experienced a similar 0.37% increase to hit 1,198. XRP has also seen a slight 0.07% increase to reach 0.338, and Dogecoin has followed suit with a 0.07% increase to reach 0.0699.
Not all cryptocurrencies have experienced gains, however. Solana has decreased by 0.80% to reach 9.93, while Uniswap has seen a 1.56% increase to reach 5.23. Avalanche has dropped by 0.29% to reach 10.81. TONCoin has had the biggest boost of all, with a whopping 7.71% increase to reach 2.34.
On Friday, the Nasdaq and S&P 500 saw dips of 0.11% and 0.25% respectively. Coinbase experienced a 1.8% increase over the week, though its shares hit an all-time low. Block saw a 4.95% increase, while Silvergate’s shares rose over 4%. MicroStrategy, on the other hand, saw a 14.5% drop after selling almost $12 million worth of Bitcoin for the first time.
U.S. markets are closed on Monday, with trading set to resume on Tuesday. But as we’ve seen during Christmas, some active traders may move their activities from TradFi to Crypto though most eyes are all the Japanese Yen.
🌐 Top 20 Coins Performance
BTC +0.38% at 16,589; ETH +0.37% at 1,198.
BNB +0.82% at 244; XRP +0.07% at 0.338; DOGE +0.07% at 0.0699.
ADA +1.82% at 0.649; MATIC +0.76% at 0.757; DOT +1.68% at 4.36.
TRX +0.45% at 0.0548; SHIB +0.22% at 0.00000809 LTC +1.77% at 70.60.
SOL -0.80% at 9.93; UNI +1.56% at 5.23; AVAX -0.29% at 10.81.
TONCOIN +7.71% at 2.34; GT -0.42% at 3.02.
Topic of the Day: SushiSwap Revamps Tokenomics to Boost Liquidity and Decentralization
SushiSwap, a decentralized exchange, has announced plans to revamp its tokenomics in an effort to boost liquidity and decentralization on the platform. The new model, proposed by CEO Jared Grey, introduces time-lock tiers for emission-based rewards and a token-burning mechanism to strengthen the exchange’s treasury reserves.
Liquidity providers will be able to earn boosted, emissions-based rewards by locking their liquidity, but these rewards will be forfeited and burned if removed before maturity. Staked SUSHI tokens will be eligible for emissions-based rewards paid in SUSHI, with the amount determined by time-lock tiers. The decentralized exchange will also use a percentage of its swap fees to buy back and burn SUSHI tokens.
This redesign comes after SushiSwap disclosed that it had less than 1.5 years of runway left in its treasury, raising concerns about its operational viability. The exchange has experienced a $30 million loss over the past year due to incentives for liquidity providers under its current token-based emission strategy. With these changes, SushiSwap hopes to turn things around and continue providing a reliable platform for cryptocurrency traders.
SushiSwap (SUSHI) $0.9294 (-1.27%)
SUSHI Overview:
- Closest daily support zone: 0.858 - 0.787
- Closest daily resistance zone: 0.988 - 1.130
- Key Level: 0.858 (Weekly Low of Sep. 28 - Oct. 05, 2020)
SUSHI Weekly Outlook: Chart Link
SUSHI Weekly Resistance zones
- 0.988 - 1.130
- 1.284 - 1.371
- 1.644 - 2.138
SUSHI Weekly Support zones - 0.858 - 0.787
- 0.713 - 0.606
- 0.543 - 0.462
If you’d like us to cover any specific token or macro data, feel free to reach out to us by dropping a message in our Reddit community.
Further Reading
[Market Trend]｜FBI Begins Investigating 3Commas Data Breach; Charles Hoskinson Reveals Upcoming ADA Experiment
[Gate Annual Review in 2022] | Rewind and be reminded of the achievements and catastrophes 2022 has brought us.
Gate US: A New, Compliance-Centric Crypto Exchange Offering an Alternative Option for Investors in the U.S. | Gate US will also provide an excellent option for security-conscious users that seek an alternative trading platform to meet their investing needs.
Gate Charity Launches New Year NFT Collection for Orphans in Vietnam | The 2023 Gate Charity New Year Seal NFT - Vietnam collection will feature 55 unique art pieces with 1,000 NFTs available to mint.
Notable headlines
🔹 Italy’s Parliament has approved a 26% capital gains tax on crypto. The tax, in the works since earlier this year, will be levied on profits in excess of 2,000 euros.
🔹 Animoca Brands has negotiated a new schedule for filing its audited 2020 accounts, which were originally due by the end of 2022. It will retain auditor DFK International with a new deadline of the end of the first quarter of 2023.
🔹 Valkyrie Investments said it has a proposal for DCG’s struggling Grayscale Bitcoin Trust and that it’s ready to become a "sponsor and manager" of the fund. The firm also said it formed Valkyrie Opportunistic Fund, LP to capitalize on "the massive discount in the spread between the NAV [net asset value] and price of GBTC."
🔹 SBF tweeted for the first time since his arrest on Dec. 12. He claimed that he was not responsible for funds recently moved from Alameda Research wallets.
🔹 According to a statement from the Bahamas’ Securities Commission released late on Thursday, the regulator has been holding on to more than $3.5 billion worth of FTX customer assets since Nov. 12. The assets will remain in the Commission’s control until the Bahamas Supreme Court orders their return to FTX customers and creditors.
🔹 Australia has overtaken El Salvador to become the fourth-largest hub for cryptocurrency ATMs, with a total of 219 ATMs installed. Spain holds the third spot with 226 ATMs, while the United States and Canada remain the top two. The global total of cryptocurrency ATMs stands at 38,602, with 6,071 being installed in 2022 alone. In contrast, Nigeria has limited ATM cash withdrawals in an effort to encourage the use of its central bank digital currency, the eNaira.
