Daily Market Update: May 24, 2023

May 24, 2023

BTC is currently trading around $26,700 and ETH around $1,800. Notable gainers in the last 24 hours are KAVA, TON, and SNX. The global crypto market cap is ~$1.16T, down ~1.8% over the last day. DeFi Total Value Locked is ~$47b and BTC dominance is around 48%.

Equities and crypto are lower this morning, with bonds mixed by region. U.K. markets are feeling the brunt of the pain behind worse-than-expected inflation, including core inflation that rose to its highest level in ~28 years (6.8%). The yield on 2Y Gilts jumped ~22 bps despite broadly stable yields in the U.S. Debt ceiling negotiations have seemingly deteriorated in the U.S. despite both sides of the aisle agreeing that a “default is off the table” earlier this week. House Speaker McCarthy noted yesterday afternoon that a deal has yet to be reached, and a team member confirmed that no other meetings are planned yet. Lastly, the latest FOMC Meeting Minutes are coming at 2pm this afternoon.

Notable news includes: a Binance executive noted that AI deep fakes are getting better at spoofing KYC verification; Japan is expected to begin enforcing tighter crypto AML laws next month; a Prometheum subsidiary received FINRA approval as a special purpose broker-dealer for digital asset securities; Tornado Cash developer Alexey Pertsev will be allowed to cross-question Chainalysis’s data methodologies that underpin the alleged criminal links; Layer 1 blockchain Vega Protocol activated onchain futures trading; FTT jumped ~12% after a filing indicated CEO John Ray has been billing hours spent on an exchange restart plan; Dispersion Capital launched a $40m web3 venture fund; and, Upstream data sued Crusoe Energy over its waste gas mining patent.

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.