Daily Market Update: Nov 16, 2022

November 16, 2022

BTC is currently trading around $16,500 and ETH around $1,200. Notable gainers in the last 24 hours are CHZ, AR, and OKB. The global crypto market cap is ~$864B, down ~3.0% over the last day. DeFi Total Value Locked is ~$43b and BTC dominance is around 40%.

Global equities are down slightly this morning, while bonds are moving higher. Crypto is also down as crypto market contagion has spread to Genesis, Gemini Earn, and likely many others. Tensions ran high yesterday afternoon as early reports indicated a Russian missile killed two in Poland, a NATO country bordering Ukraine. Under NATO’s Article 5, an armed attack against a NATO country is considered an armed attack against all NATO countries; hence, the act could mark a severe global escalation in the Russia / Ukraine war. Details are still emerging, but markets rallied back in the late afternoon as later reports indicated the blast was from the remains of a missile shot down by Ukrainian forces. In FTX-related news, SBF continues to double down on his attempt to raise liquidity to bail out customer deposits, reiterating a warped valuation of FTX’s illiquid token assets to understate the severity of the shortfall. Elsewhere, the FBI is reportedly in talks with Bahamian authorities to extradite SBF to the US. 

Notable news includes: multiple US banks partnered with the Fed to test a CBDC platform; businesses can now accept USDC with Apple Pay; Gemini Earn halted withdrawals as their lending partner Genesis paused withdrawals and suspended loan originations as a result of FTX-fueled challenges; crypto exchange AAX said its ability to reopen is dependent on raising new capital; crypto lender SALT halted withdrawals; DeFi protocol Oxygen held 95% of its supply on FTX; Nigerian crypto startup Nestcoin announced its operating capital is stuck in FTX; Serum’s token doubled following its emergency fork in the wake of the FTX hack; ZachXBT called out crypto exchange Gate for keeping a 2018 crypto hack under wraps; Bitcoin hosting provider Applied Digital secured a $15m loan to expand in Texas; Cristiano Ronaldo revealed plans to release his first NFT collection on Binance this Friday; Sony filed a patent for tracking in-game digital assets with NFTs; 3AC’s wallet shifted over $20m in the past week, fueling rumors of its revival attempt; a third party audit found the Luna Foundation Guard spent ~$2.8b defending the UST peg; and, Trump officially announced his 2024 presidential bid.  

Authors:
Matt Kunke, Junior Strategist | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TelegramLinkedIn

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.