Daily Market Update: October 19, 2023

October 19, 2023

BTC is currently trading around $28,500 and ETH around $1,550. Notable gainers in the last 24 hours are CPRC, RLB, and BSV. The global crypto market cap is ~$1.13T, down 0.1% over the last day. DeFi Total Value Locked is ~$36b and BTC dominance is around 52%.

Crypto and equity markets are mostly flat, while yields continued to move sharply higher as the US 10Y yield approached 5% this morning before paring back the rise in the last hour. A midday speech from Fed Chair Powell will be in particular focus given the week’s interest rate volatility and steepening term structure. Markets continue to overwhelmingly expect a pause at the upcoming FOMC on November 1st. Elsewhere, earnings have presented a mixed bag so far, with beats from Netflix and TSMC, while Tesla is down after missing on the top and bottom lines.

Notable news includes: Aptos suffered a five hour outage on its first birthday since launch; the OCC revealed plans to host a tokenization symposium in February 2024; Ether.Fi rolled out its liquid staking token eETH that’s integrated for restaking with EigenLayer; Lightning Labs released the mainnet alpha for Taproot Assets, enabling stablecoins and tokenization more generally on Bitcoin; Stellar is expected to introduce smart contracts later this year; Tesla maintained the remainder of its bitcoin holdings during Q3; stablecoin companies are now the 16th largest holders of US treasuries; Coinbase Advanced enabled perps trading on BTC, ETH, LTC, and XRP with 3-5x leverage for non-US customers; Nomura-backed Komainu joined Copper’s ClearLoop network; Bitcoin miner Marathon added Fidelity Digital Assets as a custody provider; India’s state-run oil refiner HPCL is planning to automate verification of its purchase orders via blockchain; Coinbase selected Ireland as its European crypto hub; Germany’s regulator warned that MEXC’s custody is unauthorized with BaFin; OpenAI is reportedly planning a tender offer at an $86b valuation; and, Ethereum DeFi protocol Hope Lend was drained of ~526 ETH in an exploit.

Sign up to conveniently receive GSR crypto content in your inbox.

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.  GSR is not authorised or regulated in the UK by the Financial Conduct Authority.  The protections provided by the UK regulatory system will not be available to you. Specifically, information provided herein is intended for institutional persons only and is not suitable for retail persons in the United Kingdom, and no solicitation or recommendation is being made to you in regards to any products or services. 

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.