Digital Assets Weekly: June 30th

Market Analysis

After Bitcoin’s price briefly dipped below $9,000 on Saturday, gains on Sunday pushed it back above $9,000 into the lower band of its $9,000-$10,000 trading range that has persisted since the halvening. This ended its longest streak of daily losses (5 days) in over half a year. Prices last declined for 5 consecutive days in early December 2019.

Bitcoin remains firmly ahead of gold as the best performing asset class on a YTD basis.

All major crypto assets were down 5% to 7% on the week.

FS Crypto FX 250 was the best performing index last week, finishing the week down 2.2% and outperforming Bitcoin by 3%.

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 9.1x as of 6/29 vs 9.6x 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 1.6x as of 6/29 vs 1.7x last week.

The comp table for major crypto asset prices and fundamental valuations is shown below.

Valuation Methodology

The P/CMR ratio is a fundamental valuation method I invented in December 2017 that has historically been a strong predictor of price movements. It functions like a Price/Book (Crypto P/B) ratio by t...