BTC is currently trading around $28,500 and ETH around $1,850. Notable gainers in the last 24 hours are PEPE, BNB, and WOO. The global crypto market cap is ~$1.23T, down ~1.8% over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 48%.
The FDIC seized control of First Republic hours before the market opened, marking the second-largest bank failure in U.S. history after Washington Mutual. The announcement simultaneously revealed that First Republic was put on sale in a competitive bidding process, and a $10.6b bid from J.P. Morgan Chase bested offers from PNC Financial and Citizens, enabling the market leader to acquire substantially all of First Republic’s assets. First Republic’s 84 offices will reopen as branches of J.P. Morgan later today, and the FDIC estimated a $13b hit to the deposit insurance fund from the deal. Markets largely expected a First Republic seizure was coming, and hence the response has been unsurprisingly modest, with performance mostly flat. Elsewhere, it’s a slow start to the week as many global markets observe Labor Day. Investor focus will turn to the Fed statement on Wednesday, seeking to glean insights into the path ahead, but markets are confidently pricing in a ~90% chance of a 25 bp hike at this week’s meeting.
Notable news includes: the FDIC publicized a consent order executed with Cross River Bank in March, alleging the bank engaged in unsafe banking practices; Gemini warned that DCG is at risk of $630m default; Genesis and a key group of creditors agreed to a 30-day mediation period in an attempt to salvage a deal; OKX incorporated ZK STARKS in its proof of reserves verification process; tax law researchers proposed an IRS framework for deducting crypto losses; Bitcoin transactions surged to a record high behind inscription demand; Jack Dorsey’s nano Bitcoin mining chip heads to a prototype; Lens Protocol swiftly rebranded its proposed scaling solution from Bonsai to Momoka after realizing another blockchain project was already using the name; Adidas and Pharrell released digital clothing for Doodles NFT holders; and, hackers stole ~$93m from crypto projects in April.
Sign up to conveniently receive GSR crypto content in your inbox each morning.
Matt Kunke, Research Analyst | 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.