Trading Desk Market Update: 7/14

July 14, 2022

BTC is currently trading around $19,700 and ETH around $1,100. Notable gainers in the last 24 hours are MATIC, UNI, and SNX. The global crypto market cap is $922b, up 3.1% over the last day. DeFi Total Value Locked is ~$73b and BTC dominance is around 44%.

Markets rallied yesterday afternoon, with most asset classes including bonds and crypto more than offsetting their initial losses after the inflation print, but markets have broadly reversed this trend and continued their downward slide so far this morning. The U.S. 2y10y spread, a metric often referenced as a recession indicator, fell to -22 basis points, the most severe inversion in over two decades. It has been a tough start to the earnings season for the banking industry as both JPMorgan and Morgan Stanley missed on earnings this morning, with JPMorgan building its reserves for bad loans and suspending its share buyback program. 

Notable news includes: China’s central bank announced it will be expanding the number of digital yuan test sites from 11 to 23; a UK court allowed a lawsuit to be delivered through an NFT airdrop; Brazil postponed voting on its crypto bill until after its presidential election in October; India’s crypto lobbying group, the Blockchain and Crypto Assets Council, was abruptly shut down; OKX obtained a provisional license from Dubai’s Virtual Assets Regulatory Authority; crypto lender Celsius and its subsidiary Celsius Mining filed for Chapter 11 bankruptcy in New York; Mastercard partnered with crypto gateway provider Fasset to drive financial inclusion in Indonesia; Hyosung America partnered with DigitalMint to enable bitcoin purchases at the firm’s 175k ATMs across the U.S.; Plaid, an open-banking system that aggregates users’ financial information, announced integrations with Binance.US, Kraken, and Gemini to expand its access to users’ crypto holdings; StarkWare confirmed the creation of a StarkNet token; the Celo blockchain suffered a critical network outage; Polygon joined Disney’s ‘accelerator program’ to develop AR, NFT, and AI experiences; Bitpanda launched Metaverse and DeFi-themed crypto investment indexes; Binance burned $444m of BNB tokens; CoinShares launched a staked Algorand ETP; and, an ape-themed CryptoPunk sold for 2,500 ETH, the largest NFT sale in the past month.

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.