Daily Market Update: February 1, 2024

February 1, 2024

BTC is currently trading around $42,700 and ETH around $2,300.  Notable gainers in the last 24 hours are LINK, APE, and MINA.  The global crypto market cap is $1.72T, down 0.3% over the last day.  DeFi Total Value Locked is ~$57b and BTC dominance is around 53%.

Equity markets fell yesterday after the Fed held rates steady and cautioned that a rate cut in March in unlikely, disappointing traders.  Positively, Fed Chair Powell did state that economic growth has been solid and that inflation is expected to decline.  Elsewhere, Alphabet and Microsoft sold off despite reporting strong earnings results, while Apple, Amazon, and Meta are due to report after the close today.  Meanwhile in Europe, headline and core consumer prices increased 2.8% and 3.3% year-over-year in January, respectfully, both down 10 bps from December though core price growth was slightly higher than expected.

Notable news includes: The US Energy Information Administration will start to collect electricity consumption data from US-based crypto mining companies starting next week; US lawmakers pushed back against a proposed rule by the Consumer Financial Protection Bureau citing a lack of clarity for crypto companies; Russia’s largest securities and banking association NAUFOR launched a council for the self-regulation of digital assets; German banking giant DZ Bank revealed plans to pilot crypto trading this year; FTX stated that it could “cautiously predict” to repay customers and creditors in full, though customer assets would be valued based on crypto prices as of November 2022; Celsius began distributing $3b worth of crypto and fiat to its creditors; Binance launched a marketplace for inscription tokens; Solana DEX aggregator Jupiter registered $1.4b in one-day trading volume amidst the launch of its native token; Blast was accused of forking Optimism’s code without giving credit; Robert Leshner’s Superstate debuted its tokenized short-term treasury fund USTB on Ethereum; and, Delegate and LayerZero launched a cross-chain web3 human readable domain name protocol called Clusters.

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.