BTC is currently trading around $31,300 and ETH around $2,350. MKR is the only notable gainer in the past 24 hours. The global crypto market cap is $1.36T, down 6.7% over the last day. DeFi Total Value Locked is ~$140b and BTC dominance is around 43%.
Markets were optimistic this morning heading into the inflation print before turning negative as CPI (8.3% y/y) exceeded expectations. Risk assets reversed heavily as equities and crypto both sold off, while rates moved higher alongside a flight to the dollar. In crypto specifically, altcoins sold off heavily as Terra’s death spiral saw UST de-peg to $0.30 while Luna fell by 99% from its prior week high. Prices of major tokens like BTC and ETH remained surprisingly resilient through the Terra-induced volatility, but they began to sell-off alongside broader risk markets as inflation results were released. Just in the minutes ahead of this post, risk assets appear to have bounced off their lows in what may have been oversold conditions following the inflation results.
Other notable news includes: Treasury Secretary Yellen highlighted Terra’s collapse in a call for stablecoin legislation; the UK has introduced two bills concerning the seizure and support for cryptocurrencies; the Financial Stability Board Chair noted that the international body could lead on formulating global cryptoasset regulations; SEC Chair Gensler is worried that commingling of assets by crypto exchanges could endanger clients; the Israeli central bank revealed they have not yet made a decision on pursuing a CBDC despite public support; Terra founder Do Kwon tweeted out his support for a community proposal to adjust the Terra mint/burn parameters in an attempt to expedite the stabilization of the UST peg; environmental groups urged the US government to take action on Bitcoin miners; Argentina raised the cost of power for Bitcoin miners; The9 bought a data center in Kyrgyzstan to host 7,500 Antminers; Coinbase shares plunged after missing on the top and bottom line; a new Coinbase disclosure reminded crypto owners that they do not have full control over their coins unless they assume self-custody; FTX US opened their new headquarters in Chicago; crypto trading platform Gate introduced an institutional services arm; Abracadabra enabled leveraged yield farming on Stargate; Napster was acquired by Hivemind and Algorand at an undisclosed price; FCA regulated Fasanara Capital raised $350m for a new crypto and fintech VC fund; SPiCE VC has announced a new $250m blockchain-focused fund; crypto analytics firm Chainalysis raised $170m at an $8.6b valuation; exploited stablecoin Beanstalk seeks to borrow $77m to revive itself; and, the founder of Ponzi scheme OneCoin has been added to Europe’s most wanted list.
The daily excel file was unable to be produced today given what appears to be data issues with the API during the heightened volatility.
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.
