Digital Assets Weekly: July 22nd

Market Analysis

This week, the crypto majors continued their slumber as BTC tightened its trading range between $9,089 and $9,283. The asset finished the 7 days ended 7/20 at $9,164; down 0.8% week over week.

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

All major crypto assets saw slight dips in price over the week with Litecoin declining the most at -4.2%.

FS Crypto FX 250 had the strongest performance this week with a gain of 6.4%, driven by DeFi projects’ outperformance including Aave (+31%), Ampleforth (+63%), and Kava (+39%). FS Crypto FX 10, 40, and 300 Indexes performed in line with BTC with minor declines of about -1%.

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 decreased slightly week over week from 9.1x to 9.0x.

Bitcoin’s market cap to realized value (MV/RV) multiple was unchanged week over week at 1.6x.

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)...