Daily Market Update: Feb 10, 2023

February 10, 2023

BTC is currently trading around $21,800 and ETH around $1,550. Notable gainers in the last 24 hours are MINA, HBAR, and RPL. The global crypto market cap is ~$1.06T, down ~4.4% over the last day. DeFi Total Value Locked is ~$47b and BTC dominance is around 43%.

Equities are broadly lower, U.S. rates are largely unchanged, and oil is higher behind production cuts from Russia. The Japanese yen and JGB yields are moving higher as Japan’s Prime Minister nominated a seemingly more hawkish Kazuo Ueda to succeed Governor Kuroda at the helm of the BoJ beginning in April. The nomination was a surprise as the market-anticipated front-runner, Deputy Governor Masayoshi Amamiya, reportedly declined the position.

Crypto losses accelerated yesterday afternoon as markets grappled with the U.S.’s increasingly hostile regulatory backdrop. The concerns depicted in Coinbase CEO Brian Armstrong’s mid-week Twitter thread came to fruition, as it was revealed that Kraken would pay a $30m fine and immediately terminate its staking operations in the U.S. to settle SEC charges that it offered unregistered securities. The impact on other centralized U.S.-based staking providers, like Coinbase, remains to be seen, but markets are clearly favoring more decentralized alternatives at this time, with tokens like Lido and Rocket Pool jumping meaningfully on the announcement. In other crypto regulatory news, the NYDFS is reportedly investigating Paxos, although the scope remains unclear.

Notable news includes: Optimism’s OP token fell after announcing a surprise airdrop; the Mississippi Senate passed a bill to protect cryptocurrency miners from discrimination; CleanSpark revealed its intent to acquire 50-75 MW of new mining capacity by year-end; web3 music startup anotherblock listed a Rihanna song as an NFT with partial royalty claims; OnChain Monkey NFTs doubled after the creator expanded to Bitcoin via Ordinals; BNY Mellon indicated that ~90% of its institutional clients remain interested in digital assets; and, the disgraced Three Arrows Capital co-founder Su Zhu unveiled a waitlist for his new crypto marketplace to trade claims of failed exchanges.

Matt Kunke, Junior Strategist | 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.