Digital Assets Weekly: Staying the course
Our view on crypto markets has not changed since last week when we increased our FY 2020 Bitcoin price outlook to $16,500.
We saw a bit of bumpiness today when markets sold off after 50 BTC that had remained dormant since being mined in 2009 unexpectedly moved, spooking roomers of Satoshi selling coins. We’d dismiss this as an unlikely non-risk event and stay focused on the fundamentals.
Crypto still looks to be in the 2nd or 3rd innings of the next bull cycle. Market conditions broadly remain stable week-over-week, and thus our portfolio strategy recommendations for long terms investors remains unchanged.
In contrast to last week’s 3% decline, Bitcoin climbed 13.2% over the period and closed at 9,727 Monday evening. Notably, there was no major price action immediately following the halving event.
Bitcoin remains firmly ahead of gold as the best performing asset class on a YTD basis.
Ethereum edged out bitcoin as the top performing asset this week with a massive 15.6% return on the week.
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WHAT BTC SHRUGGING OFF CPI SAYS ABOUT CURRENT FISCAL SITUATION The most significant piece of macro data this week was the CPI. Headline CPI registered at 3.5%, surpassing the anticipated 3.4%, while core CPI remained steady from last month at 3.8%, also above the expected 3.7%. This increase was largely attributed to rising costs in auto insurance and shelter. Consequently, interest rates saw a sharp rise, with the 10-year Treasury...
INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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