BTC is currently trading around $23,800 and ETH around $1,650. Notable gainers in the last 24 hours are OKT, AGIX, and HT. The global crypto market cap is ~$1.14T, down ~1.2% over the last day. DeFi Total Value Locked is ~$50b and BTC dominance is around 44%.
It’s a rough end to the week for risk appetite as markets fell sharply following a worse-than-expected Core PCE release. The Fed’s preferred measure of inflation accelerated to 0.6% in January, coming in hotter than December’s 0.4% level despite markets anticipating another 0.4% reading this month. Risk markets retreated as investors digested the hottest reading since August. Equities are down 1% to 2%, crypto is down ~1.2%, the U.S. dollar is higher against all major pairs, and developed market bond yields are substantially higher with few caveats, like Japan. Fed Funds futures are pricing a 15% higher chance of a 50 bp hike at the next FOMC meeting relative to last week. Market implied probabilities now suggest a 67% chance of a 25 bp hike and a 33% chance of a 50 bp hike.
Notable news includes: Coinbase unveiled its new Ethereum L2 scaling network called Base that is built leveraging Optimism’s OP Stack; Sam Bankman-Fried is facing four additional charges in a new superseding indictment that was unsealed yesterday; Custodia Bank received a second rejection notice from the Federal Reserve, denying Custodia’s request for reconsideration after being denied in January; the FTC launched an investigation into Voyager’s allegedly deceptive marketing tactics; FTX Japan reported $50m in withdrawals since Feb 21; Binance liquidated the positions of ~500 Australian users who were incorrectly classified as “wholesale investors” per local regulations; HashKey obtained SFC approval to expand its OTC trading solutions in Hong Kong; Yearn teased an Ethereum liquid staking product; Blur has taken a staggering 82% of the total NFT volume share over the past week; Dapper Labs laid off another 20% of its staff; and, a Massachusetts-based municipal employee was charged after mining crypto in a school’s crawl space.
Authors:
Matt Kunke, Junior Strategist | Twitter, Telegram, LinkedIn
Brian Rudick, Senior Strategist | Twitter, Telegram, LinkedIn
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.