Daily Market Update: Mar 23, 2023

March 23, 2023

BTC is currently trading around $27,600 and ETH around $1,750. Notable gainers in the last 24 hours are LTC, DASH, and APT. The global crypto market cap is ~$1.20T, down ~2.1% over the last day. DeFi Total Value Locked is ~$49b and BTC dominance is around 47%.

Markets moved mostly sideways in the early afternoon as investors digested Fed Chair Powell’s comments, but markets sold off sharply later in the afternoon as Treasury Secretary Yellen said she wasn’t exploring ways to guarantee all bank deposits. Powell’s comments were generally quite balanced after hiking rates by the expected 25 bps, reiterating that we are approaching the end of this tightening cycle while noting that rate cuts are not part of the Fed’s baseline forecast for 2023. The Fed’s updated dot plot showed the median forecast amongst Fed officials for the year-end 2023 Fed Funds rate was unchanged at 5.1%, while the same measure for year-end 2024 came down slightly to 4.1% (4.3% previously). Elsewhere in monetary policy, the Swiss National Bank and the Bank of England hiked rates by 50 bps and 25 bps, respectively, in line with forecasts.

On the regulatory front, Coinbase is down ~15% this morning after confirming it received a Wells Notice from the SEC regarding an unspecified portion of its listed digital assets, its staking services, and its Coinbase Prime and Coinbase Wallet offerings. Coinbase’s CEO Brian Armstrong said they “welcome the opportunity for Coinbase to get before a court” on these matters.

Notable news includes: The SEC charged Tron’s founder Justin Sun for engaging in wash trades and unregistered securities sales; Kraken suspended ACH deposits and withdrawals as it searches for a new banking partner; Telegram introduced in-chat USDT transfers; ConsenSys launched an institutional staking marketplace; Arbitrum daily transactions hit a record high ahead of its airdrop; BH Digital raised $9m for its liquid token strategy; eToro raised $250m after terminating its SPAC; and, Terra founder Do Kwon was reportedly arrested in Montenegro.

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.