Daily News | US Saw Explosive Gains After NFP Release, Crypto Climbs Ahead of US CPI Due Thursday

2023-01-09, 03:29

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## TL; DR

🥂 Good morning, today is **Monday, Jan. 09, 2023.**

It’s going to be another great day. Let’s get after it relentlessly.

**Macro:** The S&P 500 and Nasdaq saw spectacular gains on Friday, fueled by speculation that Fed could be less aggressive with rate hikes due to contraction in services activity and slowing wage growth from the latest non-farm payroll report. Asian shares are likely to follow on Monday. US inflation rate is due to release this Thursday which is expected to show gradual decrease in cost pressures

**Crypto:** BTC sees a small but significant increase, reaching a value of $17,111. ADA, SOL, and LTC see impressive gains, with Solana experiencing a rise of nearly 37% over the past week. ETH sees modest gains of 1.7% and Ethereum's Shanghai upgrade, which mainnet launch is scheduled for March, will see its testnet deployed by the end of February.

****Topic of the Day:**** Ethereum's Shanghai Upgrade and Validator Staking Withdrawals on the Horizon

**Notable Headlines:** Justin Sun moved $100 million of stablecoins to Huobi shortly after Huobi announced 20% layoffs; NFT platform SuperRare cuts 30% jobs; Bluechip NFT project Moonbirds signs with Hollywood talent agents UTA…

## Macro at a Glance: Asian Stocks Rise on Expectations of Slowing Fed Rate Hikes Following Strong US Equities Performance

Asian stocks rose on Monday following a strong performance by US equities on Friday. The gains were fueled by speculation that a contraction in services activity and slowing wage growth could lead the Federal Reserve to be less aggressive with its rate hikes.

Australian equity increased by 1% and US equity futures also rose slightly after the S&P 500 and Nasdaq had their best day in over a month on Friday. Hong Kong equity contracts climbed 1.5% on Friday. Japanese markets are closed for a public holiday on Monday.

The value of Treasuries and the dollar both rose on Friday after the Institute for Supply Management's index of services showed its largest contraction since April 2020, leading to expectations that the Fed will slow its rate hike pace. US inflation data, due on Thursday, is expected to continue to show a gradual decrease in cost pressures, which will help the Federal Reserve determine the size of its next interest rate increase.

The consumer price index, which excludes food and energy (known as core CPI), is expected to have risen by 0.3% in December. While this is slightly more than in November, it is in line with the average for the quarter and significantly lower than the 0.5% average from January to September. The data will be among the last policymakers will see before their meeting on January 31st to February 1st, during which they will make their first rate decision with a new group of voting members.

Most economists predict a 25 basis point increase in the Fed's benchmark rate, although some officials have indicated that a half-point hike is possible. The data will be released nearly a week after the latest US jobs report showed a slowing in wage growth, which is a key factor in the inflation outlook.

Traders will closely watch the December inflation report after the jobs data provided an unclear picture of the US labor market, with low unemployment but weak wage gains.

💡 **Today's Markets at Jan. 08 23:50 UTC**

**BTC** +0.71% at $17,061; **Ether** +1.66% at $1,284.

**Asia: Australia** +0.98%**; Japan** +0.59%; **Hong Kong** -0.29%; **China** +0.08%; **India** -0.74%.

**Europe:** **London** +1.00%; **Paris** +1.47%; **Frankfurt** +1.20%.

**US Spot Indices:** **Dow** +2.13%; **S&P** +2.28%; **Nasdaq** +2.56%.

**US Index Futures: Dow** +0.12%; **S&P** +0.17%; **Nasdaq** +0.25%.

**US Two-year Treasury** down 21bps at 4.256%.

**US Ten-year Treasury** down 17bps at 3.560%.

**UK Ten-year Gilt Bond** down 7bp at 3.471%.

**[US Dollar](https://www.gate.io/trade/USD_USDT) Index** -1.34% at 103.40.

**FX in 24hrs:** GBP: +1.81%; EUR: +1.30%; JPY: +1.16%; CNY: +0.63%.

**Gold** +2.11% at 1,869; **Light** **Crude** +0.16% at 74.06.

🧠 **Catalysts this week**

**Monday:** France Balance of Trade, EU Unemployment Rate,

**Tuesday:** Turkey Unemployment Rate, US Fed Chair Powell Speech

**Wednesday:** Australia CPI, Italy Retail Sales, US MBA 30-Year Mortgage Rate

**Thursday** ⭐️: ****Australia Balance of Trade, China Inflation Rate, US Inflation Rate

**Friday** ⭐️: China Balance of Trade, UK GDP, Germany GDP, US Michigan Consumer Sentiment

## Crypto Daily Digest: [Bitcoin](https://www.gate.io/trade/BTC_USDT) and Ether See Modest Gains, SOL Soared 37% in a week, Shanghai Ethereum Upgrade on the Horizon

Among the top 20 coins, [Bitcoin](https://www.gate.io/trade/BTC_USDT) (BTC) saw a modest increase of 0.98% to reach $17,111, while Ether (ETH) also increased by 1.73% to $1,285.

In related news, a public test network for the Ethereum Shanghai upgrade, which is focused on the withdrawal of staked ETHs, will be released by the end of February. The upgraded mainnet is scheduled to launch in March and will allow users to access staked coins that became temporarily inaccessible during the transition to proof-of-stake consensus in September.

The top three winners were Cardano (ADA), which saw an increase of 6.83% to 0.297 following a 7.3% ascent on Sunday, Solana (SOL), which saw a strong increase of 12.11% to 14.69 and has risen nearly 37% over the past week, and [Litecoin](https://www.gate.io/trade/LTC_USDT) (LTC), which increased by 4.22%.

The was no loser among the top 20 coins as of Monday but Ripple (XRP) remained nearly unchanged since its Friday close.

The S&P 500 and Nasdaq 100 both saw gains of over 2%. MicroStrategy (MSTR) and Galaxy Digital (OTC:BRPHF) shares rose 2%, while Jack Dorsey’s Block (NASDAQ:SQ) saw significant gains of 6.6%. Coinbase (NASDAQ:COIN) fell 0.8% and Silvergate (NYSE:SI) continued to decline 2.8% after dropping nearly 43% the day before.

Silvergate shares plummeted after the company released preliminary Q4 financials showing $8.1 billion in withdrawals and announced plans to lay off 40% of its staff last Thursday. Both JPMorgan and Bank of America downgraded the stock, with the latter cutting its earnings per share estimates by 90%.

🌐 **Top 20 Coins Performance**

**BTC** +0.98% at 17,111; **ETH** +1.73% at 1,285.

**BNB** +4.83% at 274; **XRP** unchanged at 0.344; **DOGE** +1.27% at 0.0732.

**ADA** +6.83% at 0.297; **MATIC** +3.73% at 0.837; **DOT** +2.94% at 4.81.

**TRX** +3.74% at 0.0539; **SHIB** +3.27% at 0.00000869 **LTC** +4.22% at 77.98.

**SOL** +12.11% at 14.69; **UNI** +3.07% at 5.58; **AVAX** +3.49% at 12.16.

**TONCOIN** +0.91% at 2.22; **GT** +2.28% at 3.25.

## Topic of the Day: Ethereum's Shanghai Upgrade and Validator Staking Withdrawals on the Horizon

The highly-anticipated Shanghai upgrade is finally on the horizon, and it's bringing a much-needed feature to the table: validator staking withdrawals. That's right, no more being locked out of your precious ETH coins. The upgraded mainnet is scheduled to launch in March, giving you access to all staked coins that became temporarily inaccessible during The Merge.

But, but, but, there's still some time before the main event. In order to make sure everything runs smoothly, the Ethereum development team plans to release a public test network for the Shanghai upgrade by the end of February. This will give them the chance to iron out any kinks before the big launch.

Speaking of the development team, they made the wise decision to prioritize the withdrawals feature over other potential code changes. This means that the Ethereum Virtual Machine Object Format (EOF) will not be included in the upgrade, as it could potentially delay the process.

So mark your calendars, Ethereum enthusiasts, but always prepare for a delay.

### Ether (ETH) $1,285 (+1.73%)

**ETH Overview:**

- ***Closest daily support zone: 1,240 - 1,250***
- ***Closest daily resistance zone: 1,313 - 1,372***
- ***Key Level: 1,313 (Monthly Close of Dec. 2020)***

![](https://gimg2.gateimg.com/image/article/1673234879Untitled0109.png)
Ether has risen nearly 8% since the beginning of 2023 but is still down by nearly 58% YTD: [Chart Link](https://www.tradingview.com/chart/ETHUSDT/i4tUeEWg-ETH-Daily-Outlook/)

**ETH Daily Resistance zones**

1. 1,313 - 1,372
2. 1,428 - 1,450
3. 1,456 - 1,575

**ETH Daily Support zones**

1. 1,240 - 1,250
2. 1,212 - 1,190
3. 1,150 - 1,125
<br>
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](https://www.reddit.com/r/GateioExchange/).

## Further Reading

**[Market Trend](https://www.gate.io/blog_detail/2003/)**｜US Authorities Seize $460 Million In Robinhood Shares, The Indonesian Government Prepares To Launch Exchange

**[Gate Charity Officially Launches, Strengthening Mission of "Promoting a Balanced World”](https://www.gate.io/blog_detail/2000/)** | Operating under the mission of “Promoting a Balanced World,” Gate Charity aims to unite the crypto community to close the poverty gap and improve the lives of the underprivileged.

## Notable headlines

**🔹 The biggest NFT marketplace, OpenSea, announced support for Arbitrum Nova.** Nova can be used as a cheaper option to Ethereum when buying or selling digital collectibles.

**🔹 The Remote Procedure Call (RPC) endpoints run by the Solana Foundation are currently unavailable.** Crypto apps and wallets rely on these nodes to connect to the blockchain. However, the incident did not impact Solana’s ability to produce new blocks.

**🔹 Wyre said each customer can withdraw only 90% of their account funds.** The company said the move would “enable it to navigate the current market environment.” The firm added that CEO Ioannis Gianna has transitioned into a new role as executive chairman.

**🔹 U.S. Trustee Andrew Vara filed the objection in response to FTX’s proposed asset sales.** Vara expressed concern the sales might compromise information related to FTX’s bankruptcy.

**🔹 Federal prosecutors are looking at transfers between Digital Currency Group and its Genesis lending unit, according to Bloomberg.** The Securities and Exchange Commission has also reportedly started a probe.

**🔹 A Huobi spokesperson said the crypto exchange would lay off 20% of its employees.** The news comes amid rumors that Huobi’s new owners have cut off key staff communication channels. **In related news, a wallet associated with Tron founder Justin Sun moved $100 million of stablecoins to crypto exchange Huobi.** Following the move, a large buy wall appeared on huobi token.

**🔹 NFT platform SuperRare is the latest company to announce job cuts, reducing its staff by 30%.** CEO John Crain in the announcement that he takes “full ownership” of the move.

**🔹 Mt. Gox creditors will have an extra two months to provide crypto exchange and banking details for repayments.** Creditors will also have to wait a further two months to receive the first tranche of repayments.

**🔹 Bank of France governor François Villeroy de Galhau called for switching to a mandatory licensing regime for crypto firms in 2023.** The central banker wants to be ahead of EU-wide crypto regulation, which is expected to start rolling out in 2024.

****🔹 Bluechip NFT project Moonbirds signs with Hollywood talent agents UTA.**** UTA’s signing shows continued faith in representing successful NFT creators and brands amid several months of poor sales volumes. Kevin Rose is CEO of Proof, which counts both Moonbirds and Proof Collective among the NFT projects it manages.

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

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