Crypto Research

GRAYSCALE VICTORY As recently discussed, we’ve been awaiting either short-term relief in liquidity conditions—indicated by falling interest rates, a declining DXY, and increasing central bank liquidity—or the realization of crypto-specific catalysts for better price action. This week, we received encouraging news on both fronts. The courts have ruled that the SEC acted in an arbitrary and capricious manner when denying the spot Bitcoin ETF. _Source: Court Decision in Grayscale v...

After lower-than-expected JOLTS numbers yesterday, both Q2 GDP and ADP Employment numbers similarly came in below expectations, causing U.S. Treasury yields and the DXY to fall as the market reprices how much more monetary tightening may be needed. Conversely, equity indices are responding positively to the economic data, with the SPX and QQQ both rising more than 0.30% at the time of writing. After closing yesterday up over 6% following...

GRAYSCALE WINS. It's official—the courts have ruled that the SEC acted in an arbitrary and capricious manner when denying the spot Bitcoin ETF. In the wake of this news, cryptoassets, trusts, and crypto equities are experiencing strong rallies. This development will likely pave the way for a Bitcoin ETF to enter the market and could lead to the conversion of existing trusts into ETF products.

WEEKLY RECAP Last week was a big week for funding, with $211 million raised by crypto companies. While a pullback was expected from these levels, given recent market sentiment, the magnitude of this pullback is telling. Only $24m in deals were closed this week, a nearly 90% drop in one week. Over half of the funds were raised by Anytype, which closed $13.4 million in an undisclosed round. Anytype calls...

HOW WE GOT HERE Looking back over the past month, we found ourselves stuck in unusual stasis. Macro risks were escalating, and negative seasonality was taking effect, while at the same time, the potential for positive industry-specific tailwinds were knocking on the door. This strange equilibrium led to a decoupling from macro variables, with volatility approaching historical lows. _Source: Velodata. app_ Our near-term bullish view was predicated on one or...

Crypto and equities are falling today despite the buzz around impressive Nvidia earnings. The S&P is down 0.77%, while the Nasdaq has lost 1.28% at writing. Investors are focused on what may be a pivotal speech from Chair Powell regarding the Fed’s stance on further rate hikes tomorrow at Jackson Hole. U.S Treasury yields are rising, with the 10-year up three basis points at 4.22%, below the 4.35% 16-year high reached...