Daily Market Update: December 12, 2023

December 12, 2023

BTC is currently trading around $41,400 and ETH around $2,200.  Notable gainers in the last 24 hours are OSMO, KCS, and TIA.  The global crypto market cap is $1.63T, down 0.3% over the last day.  DeFi Total Value Locked is ~$51b and BTC dominance is around 53%.

Global equity markets are little changed after key US inflation data came in inline with expectations.  Specifically, headline and core CPI rose 3.1% and 4.0% year-over-year in November, respectively, and matched expectations though headline inflation ticked down sequentially from October’s 3.2% rate.  Market participants will now turn their attention to tomorrow’s Federal Reserve rate decision.

Notable news includes: The Chinese Ministry of Public Security announced plans to roll out a new blockchain-based identity verification system; South Korea unveiled new rules aimed at protecting digital asset investors; Taiwan’s FSC set up a Financial Technology Bureau to oversee crypto; El Salvador received regulatory approval to issue its Bitcoin “Volcano Bonds” in 1Q24; US Senator Elizabeth Warren announced an increase in support for her proposed Digital Asset Anti-Money Laundering Act; Japanese financial services firm SBI Holdings and Saudi Arabian state-owned oil company Saudi Aramco signed an MoU to cooperate on digital asset investments; the DTCC, a key piece of US financial market infrastructure, acquired a digital infrastructure company; KuCoin agreed to exit the New York market and pay $22m to settle a suit from the New York Attorney General’s office; Coinbase announced a new Abu Dhabi-regulated platform enabling institutions to tokenize traditional finance assets on its L2 Base; Consensys’s L2 Linea has seen high activity amidst its Voyage campaign; L2 StarkWare announced a pilot program that will pay 10% of network fees to developers; Clearpool launched its KYC’d institutional credit marketplace on Optimism; the Synthetix community passed a governance proposal to terminate token inflation and adopt token buybacks and burns; Uniswap v3 deployed on Bitcoin scaling solution Rootstock; and, international football governing body FIFA announced a new digital collection.

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

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.  GSR is not authorised or regulated in the UK by the Financial Conduct Authority.  The protections provided by the UK regulatory system will not be available to you. Specifically, information provided herein is intended for institutional persons only and is not suitable for retail persons in the United Kingdom, and no solicitation or recommendation is being made to you in regards to any products or services. 

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.