Daily Market Update: Nov 2, 2022

November 2, 2022

BTC is currently trading around $20,400 and ETH around $1,550. Notable gainers in the last 24 hours are LTC, TON, and BAT. The global crypto market cap is ~$1.05T, down ~1.4% over the last day. DeFi Total Value Locked is ~$54b and BTC dominance is around 41%.

Risk markets are down modestly heading into the Fed’s interest rate decision this afternoon. Markets widely expect a 75 bp hike, so absent a low probability deviation from consensus, investors will predominantly focus on gaining insights into the Fed’s plan for the December meeting. Currently, markets are pricing in virtually even probabilities of 50 and 75 bp hikes in December, so any clues impacting expectations here will be important. Monetary policy remains in focus for the rest of the week, with a BoE interest rate decision tomorrow and speeches from ECB President Lagarde tomorrow and Friday. On the data front, ADP nonfarm employment change data came in hotter-than-expected this morning, growing ~239k jobs and beating expectations by ~44k. Official nonfarm payrolls data will follow on Friday.

Notable news includes: South African grocery giant ‘Pick n Pay’ revealed plans to accept bitcoin; China’s giving away $2.75m digital yuan in Fuzhou to boost adoption; stablecoin issuers Circle and Paxos gained approval in Singapore; Galaxy, BitMEX, and DCG announced layoffs ranging from ~10% to ~30% of headcount; Huobi is allegedly mulling a move to the Caribbean; derivative exchange Deribit’s hot wallet was hacked for $28m, but no customer funds are at risk; L2 solution Boba Network integrated with BNB Chain; zkSync added support for Java, Python, and Go coding languages; Bitcoin miner Stronghold completed its debt restructuring; competing miner CleanSpark scooped up thousands of new rigs amid distressed markets; Bitwise announced plans to launch actively managed crypto funds; CoinFund is looking to raise an additional $250m across three of its private investment vehicles; and, a survey indicated that ~38% of US voters would consider a candidate’s crypto positions in midterm elections.

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.