Daily Market Update: Feb 27, 2023

February 27, 2023

BTC is currently trading around $23,800 and ETH around $1,650. Notable gainers in the last 24 hours are XEM, STX, and NEO. The global crypto market cap is ~$1.14T, up ~2.2% over the last day. DeFi Total Value Locked is ~$50b and BTC dominance is around 44%.

Markets opened the week positively as gains accrued to equities, bonds, and crypto. This morning’s durable goods release came in weak-than-expected thanks to a ~13.3% drop in transportation equipment orders. While the release is unlikely to change the monetary backdrop on its own, it’s one data point that’s converse to the slew of recent releases supporting tighter economic conditions. The probability of the Fed staying the course and hiking by 25 bps rose by ~5% in response based on the Fed Funds futures prices.

Notable news includes: FDIC-insured Citizens Trust Bank has partnered with Circle to hold some of its reserves in USDC; Indonesia is targeting a mid-2023 launch for its state-backed crypto exchange; a report from crypto data analytics firm Inca Digital alleged that Huobi and KuCoin still allow customers of sanctioned Russian banks to transact on their platforms; Jump Crypto and Oasis counter-exploited the Wormhole protocol hacker to retrieve ~$140m of stolen tokens, but the move was highly controversial as the recovery attempt was made by court order and shined light on the mutability inherent in upgradeable contracts; Solana experienced a ~20 hour outage over the weekend, but the root cause of the crash is still being determined; Alchemy launched its new developer platform CW3D to simplify the process of launching a dapp; the price of supposedly free Goerli testnet ETH rose to ~$1.60 over the weekend, and developers responded noting it will be phased out and eventually replaced by a new testnet; Lido Finance initiated a daily cap on stETH minting after recording its largest single day inflow of ~150k ETH; a BitDAO proposal aims to create a $200m development fund for the Mantle ecosystem; Bitcoin mining difficulty jumped nearly 10% in the aftermath of the recent price rally; yield platform Stablegains was sued over allegations that it deposited customer assets on Anchor; and, a Coinbase survey indicates ~20% of Americans own crypto.

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.