people remote working

Trading Desk Market Update: 2/1

February 1, 2022

BTC is currently trading around $38,800 and ETH around $2,800.  Notable gainers in the last 24 hours are LOOKS, SOL, and MINA.  The global crypto market cap is $1.86T, up 5.1% over the last day.  DeFi Total Value Locked is ~$195b and BTC dominance is around 42%.

Crypto markets are rallying on equity market strength and oversold conditions. Positively, a provision in the America COMPETES Act that would have allowed the Treasury to block crypto transactions it found concerning has been removed.  Additionally, India has proposed a 30% tax on crypto income, causing many to infer this eliminates the possibility of an outright ban in the country. 

In stablecoin news, the US Senate scheduled a hearing on stablecoins for February 15th, one week after the House’s own stablecoin hearing.  Additionally, the Fed released new research on stablecoins.  And stablecoin-focused DEX Curve hit a record $3.2b of daily volume on January 27th, while USDC has now surpassed $50b in circulation.  Lastly, Silvergate Bank officially announced the acquisition of Diem’s intellectual property and will launch a stablecoin of its own by the end of the year.

Other notable news includes: India announced it will create a digital rupee in 2022-2023; Thailand has terminated plans to levy a 15% withholding tax on crypto transactions; DCASH, the CBDC commissioned by the Eastern Caribbean Central Bank, has been offline for over two weeks amidst technical issues; MicroStrategy purchased $25m more BTC; 0x has announced a new feature letting developers build NFT marketplaces on various blockchains; and, Litecoin is launching MimbleWimble, its most significant upgrade in its history, to improve fungibility and privacy.

2022.02.01

This material is a product of the GSR Sales and Trading Department. It is not a product of a Research Department, not a research report, and not subject to all 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 your interests. The Firm trades instruments discussed in this material for its own account. The author may have consulted with the Firm’s traders and other personnel, who may have already traded based on the views expressed in this material, may trade contrary to the views expressed in this material, and may have positions in other instruments discussed herein. This material is intended only for institutional investors. Solely for purposes of the CFTC’s rules and to the extent this material discusses derivatives, this material is a solicitation for entering into a derivatives transaction and should not be considered to be a derivatives research report.This material is provided solely for informational purposes, is intended for your use only and does not constitute an offer or commitment, a solicitation of an offer or comment (except as noted for CFTC purposes), or any advice or recommendation, to enter into or conclude any transaction (whether on the indicative 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. Information is based on sources considered to be reliable, but not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made 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. GSR will not be liable whatsoever for any direct or consequential loss arising from the use of this Information. Copyright of this Information belongs to GSR. Neither this Information nor any copy thereof may be taken or rented or redistributed, directly or indirectly, without prior written permission of GSR. Not a solicitation to U.S. Entities or individuals for securities in any form. If you are such an entity, you must close this page.