Digital Assets Weekly: March 6th, 2020
- Crypto markets rebounded modestly this week and remain the best performing asset class YTD.
- Crypto Emerging Markets are influenced by broader financial conditions but its idiosyncratic drivers and macro market cycle mater most long term.
Winners & Losers
- Winner: Tron's founder Justin Sun who executed a hostel takeover of Steem's decentralized social media network.
- Loser: Bitmex after the FCA issued a notice that the firm has been operating in the U.K. without permission.
- Ripple CEO saying Proof of Work (PoW) is a 'Massive Waste' of Energy makes me cringe.
- Arweave raised $8.3M for its permanent internet content storage service.
- AlphaPoint raised $5.6M for its crypto infrastructure business.
- Tom Lee: Tom’s Take on Crypto: Bitcoin Proving to Be a Macro Hedge
- Robert Sluymer: Crypto Technical Analysis: Pullbacks from 50-62% retracement resistance beginning to bottom
- Ken Xuan: Crypto Quant: Crypto Benchmark Indices Performance and Review
Market AnalysisBitcoin rose modestly by 4.5% on the week, partially recovering last week’s losses and bringing its year to date return to 27.6%. Stocks and other risk assets sque...
Reports you may have missed
RESEND: Bitcoin ETF Equilibrium Price Dynamics: ETF likely to drive significant rise in daily demand
BY POPULAR DEMAND, WE ARE RE-SENDING THIS BITCOIN PRICE IMPACT OF SPOT ETF REPORT FROM JULY 24, 2023 The Bitcoin spot ETF was finally approved. And we are seeing the surge in price of Bitcoin because of attractive supply and demand dynamics.We received multiple requests to resend this report from July 24, 2023 which looked at supply and demand dynamics if a spot ETF was approved.In short, we believe a...
FLOWS BEGET MORE FLOWS We have recently discussed the potential return of crypto being correlated with equities due to the new category of market participants entering the fold. However, price action this week suggests that inflows into the BTC ETFs may be throwing water onto that theory. It seems apparent that, at least in the near-term, that the ETF flows narrative is gaining steam, and it is likely that the...
ETH GAINING RELATIVE MOMENTUM Given the success of Solana and Bitcoin's persistent dominance in this bull market, many have been quick to write off ETH. There is no doubt that ETH faces its own set of challenges, including a complex modular stack and potential cannibalization by Layer 2 solutions, which, while crucial to ETH's scaling roadmap, can sometimes fragment liquidity and users. Despite these issues, ETH continues to advance along...
BREAKING AWAY While we maintain that macro conditions are still the most critical factor in assessing the medium/long-term trajectory of BTC prices, daily returns of the leading cryptoasset continue to exhibit a lack of defined correlation with any major macro asset. To us, the biggest reason for this sustained lack of correlation is the advent of the spot BTC ETF. A prime example of how ETFs are influencing BTC's performance...