Daily News | Crypto Market Rebounds As Multiple Crises Lead To Some Of The Lowest Global Economic Output In Decades: BUSD Stablecoin Sees $2B Reduction In Light Of Mismanagement

2023-01-26, 02:52

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## TL; DR
🥂 Good morning, today is **Thursday, Jan. 26th, 2023**. We hope you guys have had a positive week so far! ****It’s going to be yet another great day – so let’s get right into it!

**Macro**: Today has been a mixed bag for the global equities stage, with many markets continuing the downward trend established yesterday in light of reports that world output growth is projected to decelerate to 1.9% this year, down from 3% seen last year. This demonstrates one of the lowest growth rates in recent decades according to WESP, launched today. Similarly, the dollar’s tight range is anticipated to be tested by GDP and the Fed’s inflation readings.

**Crypto**: The total market cap according to Coinmarketcap is $1.04T, having risen by 1.72% in 24 hours. Following two days of bearish market activity, all of the top 20 assets have gained between 1-8% over the past day, appearing to have transgressed from the general bearishness of the stock market. Solana witnessed substantial growth, with a 7.79% uptick that has brought it toward the $24.57 threshold. In addition, Cosmos broke through today with an uptick of 8.96%, demonstrating that these two assets have clearly broken the mold of the bearish trend and are being driven by bullish sentiments.

**Topic of the Day**: BUSD Stablecoin Sees $2B Reduction In Light Of Mismanagement

**Notable Headlines**: CNBC’s Jim Cramer urges investors to stay away from crypto; Goldman Sachs ranks [Bitcoin](https://www.gate.io/trade/BTC_USDT) as the world’s best-performing asset; Bithumbs ‘real’ owner faces arrest warrant on embezzlement charges; Robinhood confirms the Twitter hack that promoted a fraudulent crypto token; A group of ANKR exploit victims alleges the company only reimbursed them 50%.

## Macro at a Glance: World Output Growth Projected To Decelerate; Tepid Economic Prospects Could Threaten SDG Achieval – Is The Global Economy In Trouble?

Yesterday brought on a dismal mid-week turning point for the international equities market, bringing with it an onslaught of red and losses, with this momentum having extended into today. Across the past 24 hours much of the western equities markets have taken a notable hit, having further declined in light of data releases suggesting that the world output growth is projected to decelerate from an estimated 3% seen in 2022, to 1.9% – one of the lowest growth rates in recent decades. This news was delivered by the United Nations World Economic Situation and Prospects (WESP 2023) launched today.

This dismal report has painted an uncertain outlook for the global economic stage in the coming year, particularly considering that the data has demonstrated that there is a threat against the attainment of the 17 Sustainable Development Goals (SDGs). United Nations Secretary-General, Antonio Guterres, acknowledged this: ‘This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering and could put the SDGs farther out of reach. These unprecedented times demand unprecedented action.’. Somewhat redeeming is the fact that the report has outlined that the international growth rate could pick up to 2.7% in 2024 as the impacts of the recent global crises begin to soften. However, this forecast is heavily dependent on the pace and coordination of further monetary tightening, the consequences of the Ukrainian war, and the possibility of further supply-chain disruption.

In similar bearish news, analysts have noted that proximate technical barriers that chart readers use to dictate trades will be unlikely to dictate the next trend due to an absence of the clear fundamental bead in the US equities markets. This absence serves as a testament to the lack of traction that has been established in benchmark risk assets, such as the S&P 500. Analyst, John Kicklighter, has also remarked that the market has lacked the ‘fundamental girth necessary’ to bring the equities markets out of their complacent stagnation. However, the US 4Q GDP release is set to occur later today, with the US PCE Deflator occurring tomorrow, both of which can provide a natural update on the health of the world’s largest economy and could provide an insight into the future of the remainder of the international economy.

With the current report detailing a dismal future for the equities market, the only plausible redemption arc could be the forthcoming US data releases anticipated before the close of this week. These could provide an essential insight into the health of the equities markets and serve as an indicator of the future health of the international economy. However, if the data releases further contribute to the negative sentiment, the equities markets could easily become thwarted with more bearishness and further wane investor confidence.

**Today's Markets on Jan. 24th 03:21 GMT+8 💡**

BTC +2.14% at $23,065.21; ETH +2.69% at $1,595.71.

Asia: Australia +0.47%; Japan +0.35%; Hong Kong +1.82%; China +0.76%; India -1.25%.

Europe: London +0.44%; Paris -0.09%; Frankfurt -0.08%.

US Spot Indices: Dow +0.029%; S&P -0.018%; Nasdaq -0.18%.

US Index Futures: Dow -0.09%; S&P +0.12%; Nasdaq -0.24%.

US Two-year Treasury is down by -0.01% at 4.127%.

US Ten-year Treasury is down by -0.021% at 3.441%.

UK Ten-year Gilt Bond had a -0.033% change and is at 3.244%.

[US Dollar](https://www.gate.io/trade/USD_USDT) Index -0.31% at 101.60.

FX in 24hrs: GBP: +0.0012%; EUR: +0.0006%; JPY: -0.21%; CNY: +0.0087%.

Gold +0.08% at 1,947.50; Light Crude +0.39% at 80.46.

**Market Catalysts This Week 🧠**

Thursday: BEA Issue GDP Estimate For Q4
Friday: BEA Issue PCE Price Index

**Catalysts next week 🗓**

Monday: JPN Jobs/Unemployment Figures
Tuesday: S&P HPI Composite, CB Consumer Conference

## Crypto Daily Digest: Crypto Market Begins To Rebound Into Bullish Territory – Is The Bullish Wave Returning?

Having appeared to be coinciding with the downward trend of the stock market throughout this week, the cryptocurrency market seems to have released itself from these shackles and begun to regenerate value in spite of this. Across the past 24 hours, the market cap has risen to $1.04B, a 200 million increase from yesterday, and all of the top 20 assets have seen a notable uptick of between 1-8%. The sudden onset of a bullish trend is indicative that the bullish wave may in fact be returning with vigor, thus easing investors’ concerns that this was in fact a bull trap. However, this possibility could remain provided the crypto market falls back into bearishness as the global economy continues to suffer.

In spite of this sudden bullishness, CNBC’s Jim Cramer warned investors to steer clear from cryptocurrency as a whole, stating that [Bitcoin](https://www.gate.io/trade/BTC_USDT) does not act as a ‘hedge against anything’. Cramer instead urged investors to look towards gold as the primary alternative investment, having referenced analyst, Carley Garner’s, chart readings. Cramer added, ‘ you need to ignore the crypto cheerleaders now that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is bouncing’. Cramer’s criticisms come in light of a remarkably positive month for [Bitcoin](https://www.gate.io/trade/BTC_USDT), whereby the asset has been pushed above its four-month high and is consistently trading in the lower $20k region for the first time in months. As [Bitcoin](https://www.gate.io/trade/BTC_USDT) has begun to recover, as have a plethora of other assets across the market.

Additionally, in a recent report, the banking giant Goldman Sachs ranked [Bitcoin](https://www.gate.io/trade/BTC_USDT) above gold, the US Treasury, and the S&P 500, in the list of the ‘world’s best-performing assets’. With [Bitcoin](https://www.gate.io/trade/BTC_USDT) having taken the crown, Goldman Sachs justified this decision by stating that it has outperformed its cryptocurrency pairs and those major financial institutions of the traditional finance market with a risk-adjusted return (Sharpe ratio) of 3.1.

Among the top 20 coins, a majority have seen a notable uptick in value. Cosmos has seen the greatest gains in the past 24 hours, gaining 8.8% and trading hands at an average of $13.54. With today providing the top 20 with the essential respite it needed from the current bearish wave, this sudden marketwide shift could be indicative of a positive future for the charts across the remainder of the week.

With the cryptocurrency market moving away from mirroring the stock market’s poor performance at the time being, it is plausible that the performance of the crypto market may continue to improve. However, it is possible that the worsening global economy and waning investor confidence could leech into the crypto market and slow the volume of funds entering the space. Ultimately, it is critical to monitor the space across the coming days to see if the bullish wave can beat the adversity of the global economy.

**Top 20 Coins Performance 🌐**

**BTC** +2.14% at $23,065.21; **ETH** +2.69% at $1,595.71.

**BNB** +1.96% at $306.91; **XRP** +2.45% at $0.4162; **DOGE** +2.46% at $0.08633.

**ADA** +3.56% at $0.3713; **MATIC** +3.81% at $0.991; **DOT** +3.69% at $6.39.

**TRX** +2.79% at $0.06179; **SHIB** +3.78% at 0.00001163 **LTC** +2.63% at $89.20.

**SOL** +2.49% at $24.54; **UNI** +4.02% at $6.57; **AVAX** +4.48% at $17.82.

**ATOM** +8.88% at $13.54; **LINK** +3.87% at $6.93.

## Topic of the Day: BUSD Stablecoin Sees $2B Reduction In Light Of Mismanagement

Cryptocurrency exchange giant, Binance, has recently reported further declines of its BUSD stablecoins amidst mismanagement issues involving the exchange’s pegged tokens that surfaced earlier this month, amongst other debacles surrounding the exchange. BUSD’s circulating supply fell to $15.4 billion yesterday, having fallen by $1 billion across the past week and a total of $2 billion across the past month, according to CoinGecko. This current drop further extended BUSD’s decline from $22 billion in early December when anxious users scrambled to withdraw funds following the release of a botched report related to its digital asset reserves.

Earlier this month the blockchain research firm, ChainArgos, found that the BUSD token was not always fully backed by its reserves (cash and U.S Treasury bill reserves) throughout 2020 and 2021. Having acknowledged the breach, Binance stated that the issue had been resolved. However, Bloomberg recently reported that the exchange had mixed customer funds with the collateral of Binance-peg tokens. Alongside these recent issues, BUSD has also fallen behind its competitors in the fierce stablecoin competition, having lost 11.3% of its market capitalization in a month, with USDT gaining 1.3% and USDC shedding just 1.9%. However, despite this, BUSD remains one of the only stablecoins that grew its market value last year.

## BNB (BNB) Overlook

BNB (BNB) $308.54 (+4.12) - Neutral Outlook

**Closest daily support zone**: 300.21-304.13

**Closest daily resistance zone**: 313.2

**Key level: $304.13 (Monthly High Of January 2023)**

![](https://gimg2.gateimg.com/image/article/1674700737001.png)
Data Courtesy of CoinMarketCap

**Daily Resistance Zones:**

301.74-302.1
302.49-304.04
304.79-313.2

**Daily Support Zones:**

300.46-301.17
304.31-306.91
308.8-313

In spite of BUSD’s current declining performance, BNB has seen a recent surge in momentum, leading to a notable uptick in value. Having increased by 3.5% today alone, BNB is now trading hands at an average of $308, having broken through its 7-day SMA and nearing its monthly high by reaching a daily high of $313.2. As of now, BNB is performing comparably to its bullish wave seen in November.

On a technical note, it appears as if bulls purchased the dip to the 20-day EMA ($290) yesterday as seen from the long tail on the candlestick. This suggests that the BNB/USDT pair has the potential to swing between the 20-day EMA and $318 as the bulls and bears tussle. If the price can push through the resistance zone of $318, this could push the pair toward $360. However, if the asset fails to maintain momentum, it could easily collapse below the 20-day EMA and plunge toward the 50-day SMA of $270.

## Further Reading

**[Gate.io 2023: Focus Back on the Fundamentals](https://www.gate.io/blog_detail/2069/ "Gate.io 2023: Focus Back on the Fundamentals")** | Our Founder, Lin Han, addresses Gate’s charity initiatives and goals for the new year.

**[Watch Out for NFT Scams - How to Distinguish True and False NFT?](https://www.gate.io/blog_detail/2066/ "Watch Out for NFT Scams - How to Distinguish True and False NFT?") **| There are 7 ways to tell the truth about NFTs to keep you away from the NFT scam

**[ChatGPT AI impacts healthcare, Rising prices hit Americans, China's redistributive policies affect property developers](https://www.gate.io/blog_detail/2064/ "ChatGPT AI impacts healthcare, Rising prices hit Americans, China's redistributive policies affect property developers")** | As we have seen in the past, global events and the crypto world are often intertwined.

## Notable headlines

🔹 CNBC’s Jim Cramer urges investors to stay away from crypto after claiming that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is not a hedge against ‘anything’.

🔹 Goldman Sachs ranks [Bitcoin](https://www.gate.io/trade/BTC_USDT) as the world’s best-performing asset year-to-date ahead of gold, the US Treasury, and the S&P 500.

🔹 Bithumbs ‘real’ owner faces arrest warrant on embezzlement charges, as well as breach of trust and manipulation charges.

🔹 Robinhood confirms the Twitter hack that promoted a fraudulent crypto token after several of its social media accounts were breached for the purpose of illicit promotion.

🔹A group of ANKR exploit victims alleges the company only reimbursed them 50% after claiming that they are being discriminated against because they are liquidity providers for rival coins.

<div class="blog-details-info">
<div>Author:** Matthew Webster-Dowsing**, 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.
</div>

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