Daily Market Update: July 6, 2023

July 6, 2023

BTC is currently trading around $30,300 and ETH around $1,900. Notable gainers in the last 24 hours are XEC, BCH, and FXS. The global crypto market cap is ~$1.23T, down ~0.3% over the last day. DeFi Total Value Locked is ~$45b and BTC dominance is around 51%.

Risk sentiment waned as ADP jobs data came in sharply higher than expected (497k vs. 228k expected), escalating fears of tighter monetary policy the day after the Fed Minutes indicated June’s interest rate decision was perhaps even more hawkish than previously believed. In response, interest rates soared across the curve, with the 2y treasury yield rising ~11bps to a 16-year high of ~5.12%. The release also dampened the move in crypto, which realized meaningful gains overnight but has since given them all back and is slightly down. We’ll gain more clarity into the jobs picture after tomorrow’s nonfarm payrolls release.

Notable news includes: the Brazilian Central Bank uploaded a large collection of CBDC-related documents to GitHub as the nation heads towards its digital real launch next year; Saxo Bank was ordered to dispose of its crypto assets in adherence to the Danish regulators declaration that local banks cannot hold crypto; Namibia passed a bill to regulate crypto; Celsius moved altcoins to new wallets in preparation for conversions to BTC and ETH; an Abracadabra project leader proposed a transition of power from Abacadabra DAO to a centralized entity with lawyers, jurisdictions, and trustees; Starknet’s Quantum Leap upgrade went live on testnet and is expected to follow on mainnet next week, increasing TPS and reducing a transactions time-to-inclusion; GBTC’s discount narrowed to ~27%; Ethereum NFT royalties hit a two year low as the floor price on Bored Apes fell below 30 ETH; decentralized Twitter rival Bluesky announced an $8m fund raise and introduced its first paid service; and, Instagram’s newly launched Twitter rival dubbed Threads gained more than 10m users in the first seven hours.

Sign up to conveniently receive GSR crypto content in your inbox each morning.

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.

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.