Daily Market Update: 9/6

September 6, 2022

BTC is currently trading around $19,700 and ETH around $1,650. Notable gainers in the last 24 hours are LUNC, RVN, and ETC. The global crypto market cap is $1.03T, up 1.5% over the last day. DeFi Total Value Locked is ~$78b and BTC dominance is around 39%.

Global equities are mixed while crypto is up, and global bond yields are increasing. ETH is a standout winner this morning, alongside proof-of-work tokens that may benefit from hashrate increases following The Merge (i.e., ETC, RVN). It’s a slow start to the week with minimal data releases following Labor Day in the U.S. It’s busier mid-week with a slew of comments from influential central bank policymakers around the globe. On the docket tomorrow, BoE governor Bailey is scheduled to speak, followed by a Bank of Canada interest rate decision and a BoE Monetary Policy Committee Hearing. Thursday will continue the policy theme with an ECB interest rate decision, followed by an ECB Press Conference and a speech from Jay Powell. 

Notable news includes: Liz Truss was elected as the new Prime Minister of the U.K.; California’s power grid narrowly avoided rolling blackouts yesterday, and it’s expected to be tested again today amid a record-breaking heat wave; the House’s stablecoin bill is reportedly facing delays that may impede progress in 2022; U.K. crypto firms must now report breaches of sanctions and freeze the corresponding accounts; a Nigerian government agency announced its in talks with Binance to establish a “virtual free zone” dedicated to blockchain technology; Brazil’s SEC is reportedly pursuing changes in the country’s legal framework for digital currency regulation; Russia agreed to legalize cross-border crypto payments; India’s central bank is preparing to trial a CBDC with public sector financial institutions; an Australian research project is aiming to determine the potential of a CBDC in the country; Saudi Arabia’s central bank hired a former Accenture executive as its new crypto chief; Binance revealed plans to consolidate most of its trading crosses (excluding USDT) into its stablecoin BUSD to alleviate the impact of liquidity fragmentation; Celsius expects to receive a $70m loan repayment to fund operations beyond November; Poloniex and Bittrex joined Tether in asking the courts to terminate Roche Freedman from their respective class action lawsuits following the Avalanche legal scandal; FTX and Binance announced plans to halt withdrawals/deposits of ETH and other related assets ahead of The Merge; Ethereum completed its final pre-Merge upgrade ‘Bellatrix’; KlimaDAO engaged Tusk Strategies to push Congress to write DAOs into law; Aave ceased ETH lending ahead of The Merge; Terra launched its second LUNA airdrop in an attempt to help repay holders; adjusted stablecoin volume grew ~33% in August; Armenia aims to become a Bitcoin mining hub as it expands hydroelectric power generation capacity; crypto miner Poolin paused BTC/ETH withdrawals, citing liquidity problems; FIFA launched an NFT platform on Algorand ahead of the World Cup; LG Electronics launched a new NFT marketplace ‘LG Art Labs’; NFT watchdog Rug Pull Finder had its own NFT giveaway exploited; X Marketplace’s new platform streamlines the licensing of NFT IP; an NFT-based HQ Trivia reinvention raised a $7m seed round; blockchain-focused incubator and adviser PANONY closed a funding round at a $100m valuation; 21Shares parent company raised $25m at a $2b valuation; UBS and Wealthfront called off their $1.4b deal; and, crypto exchange Thodex’s runaway CEO was arrested in Albania. 

Matt Kunke, Junior Strategist | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TelegramLinkedIn

This material is a product of the GSR Sales and Trading Department. It is not a product of a Research Department, not a research report, and not subject to all of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with your interests. The Firm trades instruments discussed in this material for its own account. The author may have consulted with the Firm’s traders and other personnel, who may have already traded based on the views expressed in this material, may trade contrary to the views expressed in this material, and may have positions in other instruments discussed herein. This material is intended only for institutional investors. Solely for purposes of the CFTC’s rules and to the extent this material discusses derivatives, this material is a solicitation for entering into a derivatives transaction and should not be considered to be a derivatives research report. This material is provided solely for informational purposes, is intended for your use only and does not constitute an offer or commitment, a solicitation of an offer or comment (except as noted for CFTC purposes), or any advice or recommendation, to enter into or conclude any transaction (whether on the indicative terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal. Information is based on sources considered to be reliable, but not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. GSR will not be liable whatsoever for any direct or consequential loss arising from the use of this Information. Copyright of this Information belongs to GSR. Neither this Information nor any copy thereof may be taken or rented or redistributed, directly or indirectly, without prior written permission of GSR. Not a solicitation to U.S. Entities or individuals for securities in any form. If you are such an entity, you must close this page.