- Markets opened lower on Monday following a surprise rate cut by the Chinese government preceded by the release of concerning economic data. Both equities and crypto have recovered since the market opened, with the $SPX (-0.2%) and $QQQ (-0.1%) now trading nearly flat on the day. Meanwhile, the global crypto market is down 3.2% over the last 24 hours following an impressive weekend rally which saw $BTC (-1.7%) touch $25k and $ETH (-4.2%) move briefly above the $2k level. Meme coins led the rally, likely pointing toward the recent increase in risk appetite across all asset classes. Shiba Inu ($SHIB), the meme coin built atop Ethereum, is one of the few large-cap names in the green, up 1.7% on the day.
- This morning, Galaxy Digital ($GLXY) announced that it had terminated its long-pending acquisition of leading crypto custody provider BitGo. The acquisition was first announced in May 2021 for $1.2 billion, and reports surfaced a few months ago that terms were being renegotiated. According to Galaxy, the deal fell through due to an inability for BitGo to "deliver audited financial statements for 2021 that comply with the requirements of our agreement." There will be no termination fee payable in the breakup. Galaxy's BitGo acquisition was an attempt to introduce infrastructure-focused offerings such as custody and prime brokerage to its already considerable presence in the digital asset management space.
- Ethereum isn't the only network undergoing a major network upgrade. Over the weekend, privacy coin Monero ($XMR) completed a non-contentious hard fork introducing new privacy and security-focused features. The changes include an increase in Monero's "ring size" from 11 to 16, which increases the pool of non-signers that a signer is added to following a transaction to more effectively conceal the actual signer's identity. In addition to several other minor changes, the network upgraded its algorithm to increase settlement speeds and reduce transaction sizes. Despite needing to delay this upgrade by a couple of months, this timing could not be better for Monero, as the attention on privacy tools in crypto has ramped up following the US Treasury's sanctioning of Tornado Cash just last week.
Crypto Daily Report – August 15
Aug 15, 2022
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