Market Insights 11th January 2023
Highlights of the recent US economic reports
- The ISM Non-Manufacturing Index for December fell sharply from 49.6 to 56.5 previously. It was the first time the index dipped below 50 since May 2020, which indicates economic contraction.
- Although the payrolls rose by 223,000 versus forecasts for 200,000, it was the lowest number of jobs added since April 2021. The unemployment rate fell to 3.5%, lower than the anticipated 3.7%, while the YoY wage growth was 4.6%, softer than forecasts for 5.0%.
- The Fed lifted its benchmark Fed Funds rate by just 50 bps as opposed to the previous 75 bps move (4.25% -4.5%) to relieve the influence of aggressive rate hikes through most of 2022. The unemployment rate fell to 3.5%, lower than the anticipated 3.7%.
DeGods & YOOts’s migration
- Solana’s top NFT projects, DeGods and Y00ts, are to migrate chains. DeGods will go to Ethereum, while its sister project, Y00ts, will move to Polygon with support from the layer 2’s partnership fund. Polygon paid both of the projects $3 millions in total in the form of a non-equity grant.
3Comma API leakage
- An anonymous Twitter user leaked 100,000 3Commas API keys on Dec. 29th connected to the crypto trading service, after 3Commas repeatedly told users that they had been “phished” after widespread hacks. The FBI has started the investigation.
Crypto tax break for foreigners in the UK
- The UK enforces crypto tax breaks for foreigners using local brokers starting 2023. The measures now in effect are part of the government’s plans to turn the country into a crypto hub. Crypto tax break for foreigners in the UK Greythorn Insights.