Coinbase Recieves Bermuda License, Russian Central Bank Calls for Crypto Mining
Market Update
- Crypto markets have continued to slide, with $BTC down 3.3% after ~$260m in long derivative liquidations yesterday, the highest level seen this year. $BTC is trading below $29k for the first time in the last ten days, at $28.5k as of writing. $ETH is below $2k for the first time in a week, currently at $1.94k. Liquidation levels on perpetual swaps derivatives that allow traders to leverage their positions have continued to rise this year as investors gain conviction from further market strength. According to data from Coinglass, the market was positioned heavily long leading up to yesterday, showing overconfidence that $BTC would continue to climb after breaking past $30k. Equities are flat today, with the S&P down 0.20% and the Nasdaq up 0.10%. U.S Treasury Yields declined after two disappointing key data releases today indicated a potentially slowing economy. The Philadelphia Fed manufacturing index dropped more than expected, while weekly jobless claims rose to 245k from 240k a week prior.
- Coinbase announced it had received a license from the Bermuda Monetary Authority (BMA) amid plans to launch an offshore derivatives exchange in the next few weeks. The move will see Coinbase compete for market share for perpetual swaps, a large part of daily crypto trading activity unavailable in the U.S. due to regulations. The leading U.S crypto exchange has seen increased hostility from the SEC, which recently served them a Wells Notice regarding several products. Coinbase’s CEO Brian Armstrong has been outspoken that the lack of regulatory clarity would lead to U.S-based crypto firms relocating offshore. Hong Kong, Dubai, and Singapore are all vying for crypto business with clear regulatory frameworks, while this week, SEC Chairman Gary Gensler was questioned in Congress over the agency’s apparent animosity towards crypto.
- Russia's central bank announced it was working on experimental legislation establishing organizations to mine and settle foreign payments with digital assets. Governor of the Bank of Russia, Elvira Nabiullina, spoke in the Russian parliament about the launch of a pilot program to use cryptocurrencies for foreign trade. President Putin approved laws that banned crypto trading and payments within Russia while previously calling for the central bank to ban cryptocurrency mining. That hasn't stopped the central bank from rolling out a program that would allow legal entities in Russia to form crypto-mining groups. Under the new guidelines, only businesses with state ties would be able to mine, but officials have given signs that this could expand. Addressing parliament, governor Nabiullina stated, "We adhere to the same position that, within the country, cryptocurrency […] should not be used. As for foreign payments, we assume that this is possible in the form of an experiment."
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Conic's recent weakness has pulled back to an important area of near-term support which will need to hold to give this a chance to work higher into end of month. Technically, the structure of WETH/CNC appears like a giant triangle pattern since mid-March which has kept prices largely range-bound. The former weakness into March looked to have held right where this needed to at an area corresponding with former highs from late last year near $5.00. Unfortunately the broader structure will require some improvement before being able to weigh in positive just yet given this recent triangle formation. Rallies back over $8.00 would be considered quite positive for $CNC, allowing this to begin a rally back to challenge and eventually exceed early year highs near $12. However, on the flip side, it will be important to remain above $6 and any break of this level argues for weakness into May which might find little support until near $4.50 before much stabilization gets underway. At present, CNC looks like an interesting risk/reward at current levels, but will have to achieve an upside breakout above $8.00 to have conviction.
Daily Important Metrics
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All metrics as of April 20, 2023 1:16 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $553B | $28,571 | ↓ -2.30% | ↑ 72% | |
 ETH | $235B | $1,947 | ↓ -1.37% | ↑ 63% | ↓ -9.96% |
 ADA | $14B | $0.4017 | ↓ -4.38% | ↑ 63% | ↓ -9.73% |
 DOGE | $12B | $0.0845 | ↓ -5.24% | ↑ 20% | ↓ -52% |
 MATIC | $9.7B | $1.05 | ↓ -5.10% | ↑ 38% | ↓ -34% |
 SOL | $8.8B | $22.30 | ↓ -3.65% | ↑ 125% | ↑ 53% |
 DOT | $7.3B | $6.20 | ↓ -3.56% | ↑ 43% | ↓ -30% |
 LINK | $3.9B | $7.61 | ↓ -4.80% | ↑ 37% | ↓ -35% |
 NEAR | $1.8B | $2.07 | ↓ -5.22% | ↑ 62% | ↓ -10% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -37% | $15.90 | ↓ -2.69% | ↑ 92% | ↑ 19% |
| BITW | ↓ -55% | $11.28 | ↓ -1.66% | ↑ 110% | ↑ 38% |
| ETHE | ↓ -48% | $9.56 | ↓ -2.75% | ↑ 101% | ↑ 28% |
| BTCC | ↑ 0.11% | $5.23 | ↓ -2.97% | ↑ 73% | ↑ 0.14% |
News
QUICK BITS
Bitcoinist Crypto Mining Goes International: Russia Allows Limited Access For Foreign Trade Russia is taking crypto mining on a whole new level. Following the invasion of Ukraine in 2022, international sanctions have been imposed on the country. Now, t... |
REGULATION
Fundstrat AI Robot In a case involving now-defunct crypto exchange Gatecoin, a court ruled that cryptocurrencies are property that can form the subject of a trust. |
Decrypt.co Coinbase Receives Bermuda License, Outlines Global Expansion Plans The exchange is also in talks with Abu Dhabi Global Market regulators about opening a regulated exchange there. |
FUNDRAISING AND M&A
Decrypt.co Bankrupt Crypto Lender Voyager Seals Fed Deal for $1 Billion Binance US Acquisition Insolvent crypto lender Voyager has struck a deal with the U.S. federal government, allowing it to sell its assets to Binance.US. |
CoinDesk DeFi-Focused Layer 1 Berachain Raises $42M Series A at $420.69M Valuation The round was led by Polychain Capital and included participation from venture capital firms Hack VC, dao5, Tribe Capital, Shima Capital and Robot Ventures. |
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