Daily Market Update: Feb 16, 2023

February 16, 2023

BTC is currently trading around $24,400 and ETH around $1,700. Notable gainers in the last 24 hours are ACS, FLOKI, and OP. The global crypto market cap is ~$1.15T, up ~5.1% over the last day. DeFi Total Value Locked is ~$51b and BTC dominance is around 45%.

Crypto markets continue to extend their upward trend, while equities are moving lower following another worse-than-expected read-through for inflation with this morning’s PPI release. Reports of more friendly crypto regulation in Hong Kong were likely the most significant catalyst spurring crypto’s recent divergence from other risk assets. While the crypto rally has been broad-based, it has been uncharacteristically led by the majors like BTC & ETH. One potential theory may be a flight to the highest quality decentralized assets amidst the perceived threat of a heightened crackdown on centralized stablecoins.

Notable news includes: Hong Kong will reportedly legalize crypto trading for its citizens beginning on June 1st; the SEC proposed expanding federal custody rules by requiring custodial crypto assets to be held by a ‘qualified custodian’; Abu Dhabi increased its commitment to crypto by vowing to invest $2b in crypto startups; Binance revealed its expecting to settle monetary fines with U.S regulators for past misconduct; Flashbots unveiled its latest MEV solution that would connect ordinary users to MEV harvesters known as searchers, allowing users to earn MEV by auctioning their transactions to searchers; the Blur CEO petitioned creators to ‘block OpenSea’ in a new blog post over royalty fees; a professional Fortnite player claimed the high prize in Yuga Labs’ Dookey Dash, listing the one-of-one golden key prize for 2,222 ETH; OpenSea took down Rihanna’s music NFTs for violating its ToS by offering claims on future profit; CleanSpark sold a tokenized ‘clean’ Bitcoin mining credit issued by the Sustainable Bitcoin Protocol to the alternative asset management firm Melanion Capital; Celsius’s creditors sued former CEO Alex Mashinsky; and, the Mango Markets exploiter’s legal team objected to a law suit seeking the return of $47m to Mango Labs.

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.