Digital Assets Weekly: June 23rd
Market Analysis
Closing at $9,304 on Tuesday evening, Bitcoin remains firmly within its $9,000 - $10,000 trading range that has persisted since the May halving. Heading into the back half of the week, all eyes are on the options market as an estimated $930M worth of bitcoin options, accounting for about 70% of total open interest are set to expire on June 26th.
Bitcoin remains firmly ahead of gold as the best performing asset class on a YTD basis.
Ethereum led all major crypto assets over the past week by ~3% and finished the week up 5.2%.
FS Crypto FX 40 was the best performing index last week, finishing the week up 4.8% and outperforming all other indices by ~2%. Major contributors to this outperformance were Chainlink (+14%), Cypto.com Coin (+12.2%) and Ontology (+18.9%).
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 6/22 vs 9.4x as of last week. This value remains slightly below the levels from Mar-19 through present.
Bitcoin’s market cap to realized value (MV/RV) multiple was 1.7x as of 6/22 vs 1.6x last week.
Reports you may have missed
Storm-Driven Claims, Political Shifts, and Seasonality Point to Bullish Crypto Setup for Late October
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OUR VERDICT: POWELL NAILED IT Yesterday, Powell did exactly what risk assets wanted him to do—their actions were dovish, with a 50-bps cut and guidance for two more by year-end, but their economic commentary remained reassuring. Many bears point to this as hawkish, and since it's hawkish, it's implicitly bad for risk assets (including crypto). In our view, if Powell had taken a significantly more dovish stance than he did,...
