BTC is currently trading around $25,000 and ETH around $1,700. Notable gainers in the last 24 hours are HALO, AGIX, and STX. The global crypto market cap is ~$1.13T, down ~1.6% over the last day. DeFi Total Value Locked is ~$47b and BTC dominance is around 46%.
Risk asset sentiment has deteriorated meaningfully, and equities and bond yields are both sharply lower. The 2Y yield has fallen ~45 bps, more than offsetting Tuesday’s temporary rise and falling to a new local low (~3.79%). Banking sentiment began to wane again yesterday, and most early morning gains were returned later throughout the day. Credit Suisse (CS) is in particular focus this morning after falling as much as ~30%. The Swiss bank announced it found ‘material weakness’ in its financial reporting process from past years, and the Saudi National Bank, CS’s largest financial backer, said it would not provide additional financial support. Trading was temporarily halted for CS and several other European banks amidst the turmoil. Losses were not confined to Europe either, and banks are also leading today’s plunge lower in the U.S. Markets are beginning to price a higher probability of a Fed pause as sentiment deteriorates. Additionally, this morning’s lower-than-expected retail sales and PPI releases provide increased flexibility for the Fed to potentially pause at next week’s FOMC.
Notable news includes: The DoJ was reportedly investigating Signature’s work with crypto clients before being seized by regulators; The NYDFS claimed Signature was shutdown due to a ‘crisis of confidence’ in its leadership; retail customers in Singapore can now freely transfers funds to and from their Coinbase accounts using any Singapore bank; Anchorage cut 20% of its staff due to regulatory uncertainty; USDC has seen its largest burn on record, with more than $4.5b of net redemptions since Friday; Blackstone and Apollo are reportedly eyeing SVB’s assets; the Cosmos Hub released its replicated security upgrade; Uniswap and Aave integrated on Base; Bitcoin options volume hit a 22-month high; and, Euler Finance announced a $1m reward in an onchain message for information that leads to the arrest of its exploiter and the return of the stolen funds.
Matt Kunke, Junior Strategist | Twitter, Telegram, LinkedIn
Brian Rudick, Senior Strategist | Twitter, Telegram, LinkedIn
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