BTC is currently trading around $29,400 and ETH around $1,850. Notable gainers in the last 24 hours are XDC, XLM, and PEPE. The global crypto market cap is ~$1.23T, up ~0.8% over the last day. DeFi Total Value Locked is ~$43b and BTC dominance is around 50%.
Equities are rallying sharply, led by Tech and European markets, and bonds are mixed across region. Both the Fed and ECB unanimously hiked interest rates by 25 bps as markets expected, and both central banks unsurprisingly pointed towards data dependency in determining whether another hike or pause would follow. The interest rate response is mixed so far this morning, and US yields are meaningfully higher while yields across Europe are falling. The US interest rate move stems from this morning’s stronger-than-expected preliminary Q2 GDP release, which came in at 2.4%, much hotter than the 1.8% expected, pointing to the potential need for rates to keep rising to prevent overheating. On the opposite end of the spectrum, a weakening near-term outlook in Europe and a late comment from President Lagarde’s press conference stating “[she] wouldn’t say at this time that we have more ground to cover” have decreased market expectations for another 25 bp hike from the ECB in September. More monetary developments will follow today and tomorrow with the BoJ’s policy meeting and US Core PCE.
On the earnings front, Meta is helping to bolster the broader market and big tech specifically after gaining ~7% on earnings. The release noted its TikTok competing short-form video product dubbed Reels is helping to draw increased ad spend.
Notable news includes: The House Financial Services Committee advanced a set of crypto bills for the first time yesterday on their own merits that were not included in broader legislation; Canada’s financial regulator introduced new draft guidelines on the regulatory capital treatment of crypto-asset exposure for federally regulated deposit-taking institutions and insurers; MakerDAO’s founder Rune Christensen is proposing an increase in the Dai Savings Rate from 3.19% to 8% in an attempt to incentivize growth; the Sui Foundation terminated its relationship with the MovEx DEX alleging it breached their contract in trading locked or restricted tokens; traders redeemed ~$12.3m of Rocket Pool’s rETH in the largest one day burn on record; Avalanche revealed a new $50m initiative supporting Avalanche-based tokenized assets; Palm Network revealed plans to rollout a Polygon Supernet chain next week; Securitize issued tokenized securities in Europe representing an equity interest in a Spanish REIT; Ethereum layer 2 storage rollup EthStorage reached a $100m valuation in its seed funding round; presidential candidate RFK Jr. revealed purchasing two bitcoin for each of his seven children; and, the DoJ revealed that it does not intend to proceed with a campaign finance charge against FTX founder SBF.
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.
