Good morning. Here’s what’s happening:
Prices: What’s next in crypto markets? Before making their next move, traders are waiting to hear Jay Powell’s speech. One Japanese digital asset company is trying to create a market for NFT trading in Yen.
Insights: SBI, a digital asset financial services company, is creating a Metamask competitor to NFT trading in yen-denominated yen. This initiative could help Japan’s Web 3 efforts.
Watch the most recent episodes of CoinDesk TV to see insightful interviews with industry leaders and analysis. Register for First Mover. Our daily newsletter puts the most recent moves in crypto markets into context.
Prices
The Fed Signal is Coming to Crypto Traders
As the Asia business day begins bitcoin is down 1% to $22,829, while ether is also off 1% at $1,622.
QCP Capital, a crypto trading fund based in Singapore, stated in a recent note how the performance of equities and the speech by U.S. central banks Chair Jerome Powell will guide it to the next leg in cryptocurrency.
The fund stated that “Without a recession or >4% unemployment this fiscal year, it’s extremely unlikely that the Fed will reduce rates. This means our view of the market’s pricing for cuts this year is still too dovish.”
QCP stated that it is interested in Powell’s views on whether the current rally in the market has “gotten outof hand.”
Despite the talk of a recession and headlines that mention layoffs, the U.S. job market reports from the last two months show that it is still hot. The U.S. added 223,000 jobs in December, bringing the unemployment rate down from 3.5% to 3.5%. However, January’s data shows that 517,000 new jobs were added. Both numbers defied expectations.
Edward Moya, senior analyst at OANDA, stated recently on CoinDesk TV that “I believe it’s still going very difficult to get to 2%.” “The Fed admitted, for the first-time in this cycle they said that disinflation has started.”
Moya cited the strength of the U.S. labor market and other countries as a barrier to lowering inflation. However, increased wages are supported by a fundamentally stronger market.
He said that if there are more signs that inflation overseas is becoming more stickier than we thought it would, then there could be a sell-off on Wall Street that could lower bitcoin.
Moya said he is looking into Treasury Yields. The correlation between this and bitcoin’s price is still there – at least for now.
The biggest gainers
Biggest Losers
| Asset | Ticker | Returns | DACS Sector |
|---|---|---|---|
| Cardano | ADA | -4.3% | Smart Contract Platform |
| Gala | GALA | -4.2% | Entertainment |
| Solana | SOL | -4.0% | Smart Contract Platform |
Insights
SBI’s Metamask Competitor in Yen-Denominated NFT Trades
Japan’s SBI, an international digital assets financial services company, has recently announced that it will launch a MetaMask-like platform for non-fungible tokens (NFTs). It uses the Japanese yen to trade on the SBINFT market. CoinDesk Japan reports.
Japan is a hub for NFTs due to its internationally recognized IP and widely accepted art styles. SBI is trying to change this.
The U.S. Dollar is the most liquid and reliable currency in international trade. It also serves as the standard for most commodities’ prices. The most traded global currency Nearly 88% of global trade is denominated as Greenbacks, with the rest in USD. This is not surprising, given that the U.S. economy is the largest in the world and most trade across the globe has some kind of connection to the United States.
Crypto is not tied to any nation. It doesn’t have a centralized economy. However, most digital asset transactions around the globe are made in USD.
Mike McGlone, Bloomberg analyst, said that despite the declining U.S. share of the world’s GDP the dollar is increasingly dominant, especially in the digital ecosystem. In an April 2021 note. “There seems to be no stopping the most consistent trends of crypto assets: increasing trading volume and the proliferation stablecoins following the dollar.”
This is a case in point: CoinGecko data shows that there are only about Volume of $87 Million in 24 Hours For yen-denominated Bitcoin trading pairs, and approximately $21.5 million for ether trading In yen. There are There were a few unsuccessful attempts. They are trying to create a yen stablecoin but it doesn’t seem like they have. gotten much traction.
This is because Japan embraces the Web 3. CoinDesk’s Emily Parker, a CoinDesk reporter, reported that crypto in Japan seems to exist in a parallel universe. Post Mt. The Gox rules mean that assets of FTX Japan are kept in third-party custody. Legislators are currently working to create a framework for DAOs or NFTs to be submitted to the Diet, the nation’s legislature.
This embrace will continue with more cryptocurrency trading in yen. SBI’s Web 3 wallet could be the catalyst.
Important events.
4:30 p.m. HKT/SGT(8:30 UTC) Bank of Canada Governor Macklem speech
4:40 p.m. HKT/SGT(8:40 UTC) Speech by Fed Chair Powell
10:50 p.m. HKT/SGT(14:50 UTC) Japan’s Current Account n.s.a. (Dec)
CoinDesk TV
If you haven’t seen it yet, here’s the latest episode of “First Mover” (CoinDesk TV):
FTX: Asks Politicians Who Received Bankman-Fried Donations To Return Money; Bitcoin Rally Stops
“First Mover” was following developments in Turkey, which is a key center for crypto adoption. The country is currently dealing with the aftermath of a devastating earthquake. A look at crypto markets and the latest in the FTX bankruptcy court proceedings. Also, an overview of the sale of real property via NFTs. OANDA Senior Market Analyst for The Americas Edward Moya and Murphy & McGonigle Founder James Murphy joined the discussion. Sanjay Raghavan was Roofstock onChain Head, Web3 Initiatives, also joined the conversation.
Headlines
StarkWare Partners with Chainlink for StarkNet Development: The price feeds of the data provider will be integrated by the provider of blockchain scaling products.
How Bitcoin NFTs might accidentally fix Bitcoin’s security budget: The Bitcoin transaction fee market has been revived by ordinary NFTs. It will be useful?
The Rise of Crypto’s Brand of Regenerative Finance This group of crypto-natives, whether you call it a cultural shift or an evolutionary process is why they are building “public goods” that will last for the long term rather than focusing only on short-term profits.
Source: Parent DCG and Bankrupt Lender Genesis Reach an Initial Agreement with Main Creditors: According to a source familiar with the matter, the term sheet contains “an equity of the 10-year promissory notes that DCG gave Genesis in exchange for the 3AC claims”.
Hermes vs. MetaBirkins – The NFT Case that Could Have Significant Trademark and Artistic Repercussions After a year-long trademark battle, Mason Rothschild, NFT artist, and Hermes, the French luxury house Hermes finally came to an agreement on Monday. The dispute was over an NFT project based on the famous handbag.