Trading Desk Market Update: 8/22

August 22, 2022

BTC is currently trading around $21,300 and ETH around $1,600. Notable gainers in the last 24 hours are EOS, CHZ, and SNX. The global crypto market cap is $1.05T, down 1.4% over the last day. DeFi Total Value Locked is ~$80b and BTC dominance is around 41%.

Risk markets are heading lower this morning as investors continue to grapple with the challenging global macro backdrop. Investors will look for more policy clarity towards the end of the week as the ECB meeting minutes come out on Thursday, and Fed Chair Powell is scheduled to speak at Jackson Hole on Friday. Contrary to its developed market counterparts, China cut rates again this morning in an attempt to recover from extended Covid lockdowns.  

Notable news includes: Australia announced plans for state-of-the-art crypto regulations that will be informed by comprehensive ‘token mapping’ research; South Africa’s central bank approved financial institutions to serve crypto clients; Canada’s primary bank and insurance regulator provided interim guidance limiting the exposure that entities under its supervision have to crypto; South Korea may levy up to a 50% gift tax on crypto airdrops; Nigeria’s eNaira CBDC recorded $10m in transactions since October; internal documents indicated FTX’s 2021 revenue grew 10x; FTX.US was among five companies issued cease and desist letters from the FDIC; Binance.US obtained an MTL license in Nevada; Socios received regulatory approval in Italy; Hodlnaut reported a shortfall of nearly $200m as it sought court protection; Ethereum’s largest mining pool, Ethermine, revealed it will not support a proof-of-work fork of Ethereum after The Merge; Ethermine also stopped processing sanctioned transactions in its current blocks; the average bitcoin transaction fee dropped below $1.00; BIT Mining is facing threats of a NYSE delisting as its shares fell below $0.50; Tribe DAO controversially proposed a plan to distribute ~$157m of DAO-controlled assets to TRIBE holders and compensate victims of the Rari hack; Nexo introduced a new feature allowing for up to 3x leveraged trading; Uniswap blocked ~250 addresses related to stolen funds or sanctions; BendDAO is running out of funds amid fears of souring debt; Gordon Ramsay announced his foray into the metaverse with an NFT project; GameStop’s daily NFT revenue fell to just ~$4k; self-custody solution Safeheron raised $7m and partnered with MetaMask; and, hackers exploited a zero day bug to steal from General Bytes bitcoin ATMs.

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.