BTC is currently trading around $26,500 and ETH around $1,800. Notable gainers in the last 24 hours are KAVA, LDO, and XRD. The global crypto market cap is ~$1.15T, down ~2.1% over the last day. DeFi Total Value Locked is ~$46b and BTC dominance is around 48%.
Equities are largely flat while crypto continued its downward slide. Treasury yields are rising for ultrashort tenors as heightened government default concerns continue to linger. The rise is predominantly captured in 1M and 2M yields, and 1M yields still sit at a nearly ~80 bp premium versus 2M yields due to fiscal cliff concerns. In crypto-specific news, Ethereum made headlines yesterday afternoon as the chain’s finality was unexpectedly delayed. While details on the catalyst remain sparse as we await a post-mortem, several media organizations have mischaracterized the event as Ethereum halting or going down. Ethereum continued to process transactions and blocks during this hiccup, and an individual transacting on the chain would not have noticed a difference during this period. The true implication is that there was a higher chance of a block reorganization for a few minutes longer than usual. Typically reorgs cannot ‘practically’ occur on Ethereum after about ~15 minutes, but this dragged on slightly longer yesterday. Ultimately a reorg did not occur, but for those interested in the details, see our previous coverage of safety versus liveness in the Beacon Chain section here.
Notable news includes: Congressman Brad Sherman penned a letter to the SEC inquiring about investor protections for GBTC holders; the Chair of the House’s Financial Services Committee wrote to the SEC voicing concerns that the proposed custody rule goes beyond the agency’s jurisdiction; Paradigm filed an amicus brief supporting Coinbase’s legal action against the SEC seeking clear regulatory guidelines; Binance US is reportedly contemplating a reduction in CZ’s stake due to concerns over the crackdown on Binance Int’l; Metamask added functionality for U.S. users to purchase ETH via PayPal; Uniswap’s trading volume outpaced Coinbase for the fourth consecutive month; Threshold Network went live to bridge bitcoin to 20 different blockchains; Do Kwon’s bail terms were accepted by a Montenegro court; and, SPONGE is the latest memecoin flying higher after being listed on Gate and Bitget.
Sign up to conveniently receive GSR crypto content in your inbox each morning.
Authors:
Matt Kunke, Research Analyst | Twitter, Telegram, LinkedIn
Brian Rudick, Senior Strategist | Twitter, Telegram, LinkedIn
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.
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.
