Daily Market Update: Apr 26, 2023

April 26, 2023

BTC is currently trading around $29,800 and ETH around $1,950. Notable gainers in the last 24 hours are RNDR, XRD, and INJ. The global crypto market cap is ~$1.28T, up ~7.1% over the last day. DeFi Total Value Locked is ~$50b and BTC dominance is around 48%.

Markets have returned to the green behind strong earnings from Microsoft and Google. Microsoft, in particular, is carrying the market forward on better-than-expected cloud results and strong AI signaling, and with the > $2T stock up ~8%, it’s just shy of setting a one-day record for market cap growth. Crypto markets are exhibiting a much sharper upward move than equities on average, and the rise closely resembles the market dynamics observed during Silicon Valley Bank’s collapse, namely, a bitcoin-led crypto rally as expectations for future rate hikes reverted sharply lower as more cracks in the regional banking system emerged. Only this time, the narrative shift stemmed from a larger-than-expected decline in First Republic (FRC) deposits, which turned the balance sheet upside down and will be extremely difficult to recover from. FRC was down ~49% yesterday, and it’s fallen another ~25% so far this morning.

Notable news includes: Binance US abandoned its $1b Voyager deal citing U.S. regulatory challenges; Google Cloud broadened its web3 startup program with 11 blockchain firms; the former Signature Bank crypto payments chief and four of his team members joined Fortress Trust; a judge affirmed that Apple’s 30% iOS tax mandate is illegal, potentially representing a tailwind for mobile crypto applications; Genesis filed for mediator assistance over the amount of DCG’s contribution to its reorganization; the CFTC commissioner said there is no ‘immediate path forward’ with Binance; Avalanche introduced its Cortina upgrade on mainnet; Solana Labs ChatGPT plugin allows AI to fetch blockchain data; The Bahamas is seeking to tighten its crypto rules after FTX’s collapse; zkSync’s Merlin DEX was exploited for ~$1.8m immediately after its code audit; FTX sold LedgerX for $50m to M7 Holdings; Ark and 21Shares filed a third time with the SEC for a Bitcoin ETF; Steve Aoki and 3LAU revealed their first single as the ‘Punx’ NFT duo; and, the Bitcoin white paper was quietly removed from the latest MacOS release.

Sign up to conveniently receive GSR crypto content in your inbox each morning.

Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

This material is provided by GSR (the “Firm”) solely for informational purposes, is intended only for sophisticated, institutional investors and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to enter into or conclude any transaction (whether on the 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.  The Firm is not and does not act as an advisor or fiduciary in providing this material.

This material is not a research report, and not subject to any 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 the interests of any counterparty of the Firm. The Firm trades instruments discussed in this material for its own account, may trade contrary to the views expressed in this material, and may have positions in other related instruments. 

Information contained herein is based on sources considered to be reliable, but is not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made by the author(s) 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. The Firm is not liable whatsoever for any direct or consequential loss arising from the use of this material. Copyright of this material belongs to GSR. Neither this material nor any copy thereof may be taken, reproduced or redistributed, directly or indirectly, without prior written permission of GSR.