Daily News | Crypto Market Bears The Brunt Of Global Economic Performance Increase, The Sandbox Soars In Volume

2023-01-23, 01:39

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## TL; DR
🥂 Good morning, today is Monday, Jan. 23rd, 2023. We hope you guys had a restful weekend! It’s going to be yet another great day – so let’s seize it!

Macro: The Euro has begun to bounce back since falling below parity with the [US Dollar](https://www.gate.io/trade/USD_USDT) in early Q4 of 2022, it has grown by over 13% since then. European natural gas prices have begun to decline due to warmer weather, easing concerns of a deep, continent-wide recession in 2023. On the other side of the shore, it has been reported by forecasters that the US Economy is expected to decline in Q2 and Q3, despite year-ahead recession odds standing at 65%.

Crypto: The total market cap according to Coinmarketcap is $1.05T, having declined by 0.5% in 24 hours. In light of the improving global economic stage, a majority of the top 20 assets have seen gains of up to 10% this week, yet many have been privy to minor losses in the past 24 hours. This is likely due to concerns that inflation will continue to play a critical role throughout Q1 of 2023. It is important to closely monitor the improving macro situation to see if this negatively correlates with the cryptocurrency market and dampens the bullish momentum seen in recent weeks.

Topic of the Day: The Sandbox Reports Record-High Land Sales As Popularity Increases

Notable Headlines: 2.5 Trillion Shiba Inu (SHIB) Was Grabbed By Whales Overnight; Ripple’s XRP Gains Strength As The SEC Verdict Looms; UAE Minister States Crypto Will Play A ‘Major Role For UAE Trade Going Forward’; US Employment Rate Remains Strong And Inflation Is Receding In Spite Of Recession Woes.

## Macro at a Glance: Global Markets Are Expected To Have A Positive Start To The Week; Is It Safe To Start Buying Again?
Despite the wider stock market having demonstrated improved performance across the weekend, the US stock market is currently shrouded with mixed investor sentiments as the strong performance begins to slow. This has raised the question of ‘when will it be safe to start buying again?’.

Analysts have noted that the slowdown in inflation could allow the Federal Reserve to relax the aggressive cycle of interest rate hikes. However, the threat of a recession and further inflation in the US is far from gone, as the US Treasury took extraordinary measures to meet the country’s obligations after the Congress-decided debt limit was met, with Treasury Secretary, Janet Yellen, believing the measures will stall a US default until June.

With American markets recently having been plagued by a sell-off on Wall Street, the stock market is currently a mixed bag, with the likes of S&P and Nasdaq gaining between 1-2.8% as of Friday, with others taking notable hikes. However, a majority of the major indexes closed the week down, suggesting recession fears have translated to a bearish sentiment across the markets.

On Friday it was reported that the Asian stock market had progressively drawn upward, with China, Japan, and Australia all being privy to an upwards trend in light of earnings estimates rising and initiatives to boost China’s economic outlook on a regional basis. Largely, Asia has remained unaffected by the mixed sentiments from the USA. However, deviating from this trend was India, with the Mumbai stock market reporting moderate losses amidst volatility.

In the UK, inflation rates have drawn down to 10.5%, from a high of 11.10% seen in October. Despite this dip, the current inflation rate looms near the 40-year high, and prices are still spiraling. The inflation across the UK and much of Europe has been attributed to the pandemic fallout, the Ukraine and Russia conflict, and soaring European gas and energy prices. This portrait of inflation extends across much of Europe currently.

**Today's Markets on Jan. 23rd 03:21 GMT+8 💡**
BTC -1.75% at $22,819.87; Ether -1.10% at $1,644.41
Asia: Australia +0.23%; Japan +0.56%; Hong Kong +1.82%; China +0.76%; India -0.44%
Europe: London +0.08%; Paris +0.40%; Frankfurt +0.76%
US Spot Indices: Dow +1.48%; S&P +1.24%; Nasdaq +2.86%
US Index Futures: Dow +0.27%; S&P +1.05%; Nasdaq +2.82%
US Two-year Treasury is up by +0.059% at 4.09%
US Ten-year Treasury is up by +0.083 at 3.4840%
UK Ten-year Gilt Bond had a 0% change and is at 3.378%
[US Dollar](https://www.gate.io/trade/USD_USDT) Index -0.07% at 101.99
FX in 24hrs: GBP: +0.12%; EUR: +0.47%; JPY: -0.90%; CNY: 0.00%
Gold +1.11% at 1,925; Light Crude +0.11% at 81.40

**Market Catalysts This Week 🧠**
Tuesday: S&P Global Composite PMI For January 
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 Experiences Minor Pullback As Global Markets Expect A Positive Open – Is The Bull Rally A Bull Trap?
With the international economic markets having been shrouded with mixed sentiments, a majority of the crypto market has been subject to losses across the past 24 hours. With a minor dip of -2.75%, BTC holds steady above the $22k threshold at $22,577.19. ETH experienced similar losses of -2.22% and stands above the $1,600 threshold at $1,623.24. The total crypto market cap according to data provided by Coinmarketcap holds strong at $1.05T, having experienced a -1.6% across the past day, implying that the current bullish wave may be waning in light of macro changes.

In related news, Solana has seen an 83% increase in the total number of developers, as per an Electric Capital report, signaling that in spite of its decimating crash in Q4 of 2023, the sentiment around the Solana network remains bullish as development is yet to slow. Similarly, Polygon witnessed a 40% uptick in developers, Cosmos saw a 25% increase, and Polkadot saw a 2% increase.

Additionally, a solo [Bitcoin](https://www.gate.io/trade/BTC_USDT) miner has reported that they solved a block with a hash rate of only 10 TH/s, adding block 772,793 to the network. At the time the block was added, BTC’s total hash rate was just over 269 exahash per second, meaning that the miner’s 10 TH/S represented a mere 0.000000037% of the blockchain’s entire computational power. Beating unlikely odds, the miner received 98% of the total 6.35939231 BTC allotted for the block reward and fees, with the remaining 2% going to Solo CK Protocol, an online mining service that facilitates individual mining.

Among the top 20 coins, a majority have suffered losses, despite the predominant uptick in value on a weekly scale. Solana has seen the greatest losses in the past 24 hours, shedding 6.17% and totaling $24.02. However, it was UNI that went against all odds and increased by +1.79% to $6.89 while the remainder of the top twenty struggled to recuperate their losses.

With analysts forecasting an imminent correction of the trading volume of the traditional stock markets, which have over 100x trading volume compared to cryptocurrency, it is expected that this may have an effect on the crypto market at large. It is critical to monitor the market and see if the current price slips are indicative of the current bull wave being a trap as the correction looms.

**Top 20 Coins Performance 🌐**
BTC -2.75% at $22,577.19; ETH -2.22% at $1,623.24.
BNB -0.85% at $301.71; XRP -2.64% at $0.4014; DOGE +0.68% at $0.088.
ADA +1.61% at $0.3808; MATIC -1.93% at $0.9937; DOT -3.47% at $6.19.
TRX -0.94% at $0.06171; SHIB -1.32% at 0.00001204 LTC -2.62% at $87.69.
SOL -6.17% at $24.02; UNI +1.79% at $6.89; AVAX +0.64% at $17.45.
ATOM -0.81% at $13.30; LINK -0.53% at $6.96.

## Topic of the Day: The Sandbox Reports Record-High Land Sales As Popularity Increases
The Sandbox has reported record-high levels of land sales, earning its way into the list of the most used smart contracts among the top 100 Ethereum whales in the past 24 hours. WhaleStats have confirmed that The Sandbox has received extra attention from whales, indicating that the metaverse world is experiencing a flow of value and an influx of demand for its virtual land plots.

Serving as a testament to its growth in recent months, The Sandbox team has reported that its real estate NFT sales have seen a substantial 180% year-over-year growth, with roughly $1.4 billion in sales during this period, bringing The Sandbox’s land market cap up to $167 million. This has positioned The Sandbox as the third largest metaverse provider, behind Decentraland and Otherside.

With a majority of this trading activity occurring over the course of the bear market, this increase in NFT sales has failed to correlate with its market cap. Across the past six months, SAND’s market cap has fallen in line with other assets due to the bearish market conditions. However, as the bullish wave has begun to take over the market, SAND has begun to recuperate some value in a healthy three-week recovery period.

## Sandbox (SAND) Overlook
**The Sandbox (SAND) $0.8253 (+2.95%) - Neutral Outlook**

**Closest daily support zone: 0.7974-0.8091
Closest daily resistance zone: 0.8376-0.8455
Key level: $0.8455 (Monthly High Of January 2023)**

![](https://gimg2.gateimg.com/image/article/16744375988121674437553_.pic.jpg)
Data Courtesy of TradingView

Currently, SAND is up a promising 118% from its 12-month low and is beginning to approach its 200-day MA, however, it is treading haphazardly into overbought territory, meaning this could have an inverse effect on its value and prevent it from touching the MA.

On a similar bearish note, it has been noted that the top addresses accumulation of SAND soared throughout the earlier portion of January. However, this volume has sharply declined since the 19th of January, likely as whales and top addresses begin to cash out following its recent bullish rally. Prior to this, the mean coin age pivoted, meaning that SAND was regularly changing hands, yet there were no significant sell-offs that could trigger a sizable pullback.

It is possible that SAND could continue to rally for longer, especially if the metaverse world continues to organically grow and garner attention from those once again looking towards the metaverse as the market begins to regain its footing. However, with SAND dangerously teetering into the overbought range, this could trigger a pullback in value.

SAND Daily Resistance Zones:
0.7895-0.8012
0.804-0.8069
0.8376-0.8455

SAND Daily Support Zones:
0.782-0.7878
0.8-0.804
0.8202-0.8315

## Further Reading
[Gate.io 2023: Focus Back on the Fundamentals](https://www.gate.io/blog_detail/2069/gateio-2023-focus-back-on-the-fundamentals "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/distinguish-nft-scams "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-chinas-redistributive-policies-affect-property-developers "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
🔹 The Terra lending protocol, Mars, is to launch its mainnet on the Cosmos blockchain on January 31st, along with the issuance of MARS tokens to users who hold it during the two snapshots on Terra Classic.

🔹 FlintWallet adds support for Milkomeda as it seeks to become a fully-fledged Cardano-based wallet that is compatible with any blockchain network.

🔹 Ethereum whales accumulate $422,000,000 worth of SHIBA in less than one week, increasing their holdings by 151% in this period. SHIBA is now the most-held digital asset by the top 1,000 ETH whales.

🔹 UAE Minister says that crypto will play a ‘major role for UAE trade going forward’ in a recent conference. This was followed by the Minister stating that ‘global governance’ is the most important thing moving forward.

🔹Solana developer numbers soar by 83% across the past few months, signaling that development on the network is underway, despite its recent crash.

🔹Dogecoin cuts CO2 emissions by 25% making it the third fastest crypto at slashing its carbon footprint.

🔹 Report shows that multiple Ethereum layer-2 networks are growing with Polygon leading the pack having netted an increase in daily user activity of 30%.

[![](https://gimg2.gateimg.com/blog/166564757654240488320221013-155245.png)](https://www.gate.io/activities/crypto-news-carnival#/ "![](https://gimg2.gateimg.com/blog/166564757654240488320221013-155245.png)")

<div class="blog-details-info">
<div>Author:** Matthew W-D**, 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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