Digital Assets Weekly: June 9th, 2020
Market Analysis
This week, Bitcoin’s price volatility dropped to its lowest level since the Black Thursday crash on March 12th; indicating a sustained lack of definitive direction in the market over the past few weeks.
Following Black Thursday, Bitcoin rallied over 150% leading up to the mining reward halving, but has yet to establish a prolonged break above its key $10K resistance level. As of June 8th, it was trading at $9,771.
Bitcoin remains firmly ahead of gold as the best performing asset class on a YTD basis with a 36% gain to date. As of June 8th, the S&P 500 was flat on a YTD basis.
Bitcoin Cash led all other major crypto assets over the past week by 2% - 4%.
FS Crypto FX 40 was the best performing index last week and was up 2.7%. Major contributors to the outperformance of the FS Crypto FX 40 were Crypto.com Coin (+16%), and Cardano (+6.5%).
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 9.8x as of 6/8 vs 10.3x as of last week. This value remains slightly below the levels from Mar-19 through present.
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WHAT BTC SHRUGGING OFF CPI SAYS ABOUT CURRENT FISCAL SITUATION The most significant piece of macro data this week was the CPI. Headline CPI registered at 3.5%, surpassing the anticipated 3.4%, while core CPI remained steady from last month at 3.8%, also above the expected 3.7%. This increase was largely attributed to rising costs in auto insurance and shelter. Consequently, interest rates saw a sharp rise, with the 10-year Treasury...
INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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