BTC is currently trading around $17,200 and ETH around $1,300. Notable gainers in the last 24 hours are GALA, ZIL, and SOL. The global crypto market cap is ~$887B, up ~3.4% over the last day. DeFi Total Value Locked is ~$41b and BTC dominance is around 41%.
Risk assets are extending Friday’s gains attributed to slowing wage growth in the U.S. that could foreshadow the end of the Fed’s aggressive tightening cycle. Equities and crypto are both rallying this morning, with riskier segments of the market leading the charge forward. Large alt-L1s like Cardano, Solana, and Cosmos are realizing particularly strong performance. Elsewhere, U.S. CPI and U.K. GDP, respectively released on Thursday and Friday, are two notable data releases on the docket this week. Investors will also closely watch a speech from Fed Chair Powell on Tuesday morning.
Notable news includes: Kevin McCarthy was elected as the new Speaker of the U.S. House of Representatives; federal prosecutors and the SEC are reportedly probing the internal transactions between DCG and Genesis; Mexico’s digital peso CBDC project was delayed and the launch timeline remains unclear; Huobi Korea is reportedly aiming to sever ties with Huobi Global; Justin Sun moved $100m of stablecoins to support Huobi liquidity amid a wave of withdrawals from the exchange; Wyre enacted a withdrawal limit that prevents clients from withdrawing more than 90% of their account balance; Australian crypto exchange Swyftx is ending its Earn program citing unclear regulations; former FTX US CEO Brett Harrison said he would share more information ‘in time’; Metropolitan Bank will end its crypto-related services as a result of recent industry developments; Ethereum’s Shanghai testnet may launch as soon as February to test ETH staking withdrawals; the RPC endpoints run by the Solana Foundation fell offline due to a bug in a new validator client test release; the GALA token jumped more than 70% in the last day; Mastercard partnered with Polygon to launch a Web3 musician accelerator program; the y00ts and DeGods founder admitted that the team was paid $3m to move from Solana to Polygon; OpenSea added support for Arbitrum Nova; SuperRare cut 30% of its staff; Ferrari cut ties with its crypto sponsor Velas ahead of Formula One 2023; HIVE earned nearly half of its bitcoin in December from curtailing power; Marathon announced it’s experimenting with overclocking its rigs; crypto VC firm LongHash launched a new initiative using soulbound tokens to reward contributors on-chain; AVAX fell modestly as it was removed from Grayscale’s Large Cap Fund; less than 100 bitcoin ATMs were added globally in 2H22; the Beosin Global Web3 Security Report revealed that DeFi projects were most vulnerable to exploitation in 2022, accounting for ~68% of recorded exploits; and, FTX reportedly spent more than $40m on food, hotels, and flights in just nine months.
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.