Digital Assets Weekly: September 9th
For a full copy of this report in PDF format please click HERE
Market Analysis
Following a quiet August for Bitcoin price action, the asset sold off from its highs around $12,000 to as low as $9,946 on Saturday, before climbing back above $10,000 support and ending the week around $10,400. For the 7 days ended 8/7, Bitcoin was down 11.2% and now sits around ~$10,250.
Despite its meaningful sell-off, Bitcoin remains well ahead of all other asset classes on a YTD basis. Outside of Bitcoin, nearly all other major asset classes saw price declines last week with oil falling as much as 7%.
Amongst all the majors, Bitcoin was the best performing asset this week (-11.2%), while Litecoin was the worst performing asset (-20.2%).
Bitcoin led all FS Crypto Indices this week. FS Crypto FX 250 was the worst performing index with Maker (-22%) and Synthetix (-37%) representing major contributors to the underperformance.
Despite a 19% decline this past week, Ethereum remained well ahead of all other major crypto assets on a YTD basis and is still up 175%.
Bitcoin’s Mkt Cap/CMR ratio decreased 11.5% week over week from 11.2x to 9.9x
Bitcoin’s Mkt Cap/RV ratio declined 11.3% from 1.9x to 1.7x.
Reports you may have missed
Caution in the Near-term Still Warranted, Q4 Setup Remains Compelling (Core Strategy Rebalance)
THIS WEEK’S ECONOMIC DATA SKEWS TOWARD HARD-LANDING For this week’s note, we will begin by revisiting our market map for the near-term outlook on crypto. Over the past few months, the market has oscillated between expectations of a hard landing, soft landing, and no landing. However, since Powells’s speech at Jackson Hole, market outcomes have narrowed, leaving only the two scenarios furthest to the left—hard landing and soft landing. Both...
LOWER VOLUMES PERSIST Earlier this week, we witnessed approximately $2B in open interest being unwound within a matter of hours—a significant forced deleveraging event for an otherwise uneventful Tuesday, lacking a clear catalyst. In our view, the selloff was largely technical and indicative of the negative seasonality we've been discussing recently. To backtrack, Monday and Tuesday followed a dovish Fed pivot at Jackson Hole, sparking a sharp rally in soft-landing...
GOVERNMENT SELLING SEEMS TO BE COMPLETE Last week, we highlighted the negative seasonality from mid-August through September but emphasized that macro trends and identifiable crypto-specific factors should take precedence in assessing risk. _Source: TradingView, Fundstrat_ Since last week’s CPI print, conditions have been favorable for crypto – yields and the DXY have fallen in a non-recessionary manner (more Goldilocks than risk-off), and rate-sensitive assets like IWM and RSP have rallied....
MACRO DATA POINTS TO A SOFT LANDING The global deleveraging event last week was driven by weakening economic expectations and rising fears of a potential policy error by the Federal Reserve. At the height of this uncertainty, the market priced in a 50 bps cut for September, as recession risks took center stage. However, in just a few days, the narrative has shifted. The market is now leaning back towards...
Articles Read 1/1
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In f5f1fa-516a4b-ca73de-1b9a8a-fb0244
Already have an account? Sign In f5f1fa-516a4b-ca73de-1b9a8a-fb0244
