Daily Market Update: May 11, 2023

May 11, 2023

BTC is currently trading around $27,300 and ETH around $1,800. Notable gainers in the last 24 hours are BGB, LEO, and KAVA. The global crypto market cap is ~$1.17T, down ~2.2% over the last day. DeFi Total Value Locked is ~$47b and BTC dominance is around 48%.

Negative sentiment returned this morning and equities, and crypto are down while bonds have caught a bid. Regional banks are continuing to feel pressure after PacWest filed that it lost nearly 10% of its deposits last week and the stock fell ~20%. Yesterday was another eventful afternoon in crypto as markets sold off sharply just after 1:00 pm behind a wave of long liquidations. A crypto Twitter user shared a screenshot of a transaction sending ~9,820 BTC tagged to ‘Silk Road,’ prompting renewed speculation of government selling that caused nearly $120m of long liquidations. As others failed to confirm the tag independently, many assumed this was due to a quick fix/removal by Arkham, but it turned out to be a mislabeled user-created private tag that was shared. Still, the damage was done as liquidations already began. Bitcoin recovered about two-thirds of the losses over the following hours, but prices have dwindled lower since yesterday evening. Elsewhere, the BoE hiked rates by 25 bps as expected.

Notable news includes: Circle has rotated its treasury portfolio into all May expiries due to debt ceiling concerns; the volume share of crypto derivatives rose to an all-time high of ~78%; Tether’s latest assurance report showed a record asset surplus of ~$2.4b, with about ~$3.9b of the ~$81.8b balance sheet held in bitcoin and gold; a new Uniswap proposal once again weighs activating a ‘fee switch’; Uniswap’s recent volume has flipped Coinbase largely due to the spike in memecoin trading; crypto derivatives protocol Vega’s mainnet went live; Milady NFTs skyrocketed as Elon Musk tweeted a Milady meme; Aragon’s ANT token rallied after its cofounder proposed a token buyback to end its activist crisis; Roblox users surged ~22% to a new peak; the IRS filed 45 claims worth $44b against bankrupt crypto exchange FTX and its subsidiaries; BNB NFT marketplace Tabi raised $10m; and, ~$176m of Do Kwon’s assets were reportedly frozen by a South Korean District Court.

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.