Digital Assets Weekly: June 3rd, 2020
Market Analysis
Bitcoin climbed as high as $10,200 on Monday June 1st before retracing to $9,530 by Tuesday’s close and ending the week up 7.2%. According to research from CryptoQuant, this latest dip could be attributable to the 5th largest mining pool, which is unknown, liquidating a large stock of coins on Wednesday as Bitcoin surpassed $10,000.
Bitcoin remains firmly ahead of gold as the best performing asset class on a YTD basis.
Ethereum led all other major crypto assets over the past week; posting a strong 18.1% return. Ripple lagged all other major coins with a 4.5% return on the week.
With the exception of the FS Crypto FX 250, all size-based indices outperformed Bitcoin over the past week. FS Crypto FX 40 was the best performing index and was up 12.2%. Major contributors to the outperformance of the FS Crypto FX 40 were Cardano (47%), and Chainlink (14.4%).
The table below shows the returns of the largest assets and the FS Size Indexes over the year.
Fundamental Valuations
Bitcoin’s P/CMR valuation stood at 9.6x as of 5/27 vs 8.9x as of last week. This value remains slightly below the levels from Mar-19 through present.
Reports you may have missed
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Gox Wallet Movements Still Present a Risk, But Macro & Politics Keeps Us Allocated Here (Core Strategy Rebalance)
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LESSONS FROM OPEC We have witnessed a significant market panic partially related to formerly locked BTC hitting the order books. The major sources of supply include:Mt. Gox – 141,686 BTCUS Government – 8,100 BTCGerman Government – 50,000 BTC At current prices, this would equate to over $12 billion in supply. This threat, combined with an inhospitable macro backdrop (rising DXY, higher rate expectations, hawkish Fed), has brought BTC down to...
LDO Risk/Reward Looks Good Here, Immediate-term Macro Picture Still Uncertain (Core Strategy Rebalance)
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