Digital Assets Weekly: September 1st
For a full copy of this report in PDF format please click HERE
Market Analysis
Early in the week, Bitcoin dipped testing $11,000 as support before rebounding and ending the week only slightly down
(-0.8%) from the week prior at $11,678. August is only the second month in Bitcoin’s history that it traded above $10,000
for the entire month.
Bitcoin continues its 2020 outperformance compared to all major asset classes. Notably, equities reached new all-time highs
this week and the Dollar continued its decline as investors expressed their appetite for risk-on assets.
Amongst all the majors, Ethereum was the only asset that was positive this week (+6.7%), largely driven by the growth of
the nascent DeFi space which broke above $8 billion in total value locked this week.
When Bitcoin dipped earlier in the week, it dragged the rest of the market down with it, but all the FS indices bounced back
and ended the week flat compared to the week prior.
Bitcoin’s Mkt Cap/CMR ratio decreased 1.2% week over week from 11.3x to 11.2x.
Bitcoin’s Mkt Cap/RV ratio was flat on the week and remained at 1.9x.
Digital Asset Investment Vehicles & Stocks
Noteworthy this week:
Canaan (NASDAQ: CAN): Canaan Inc., a provider of high-perform...Articles Read 3/3
🎁 Unlock 2 extra articles by joining our Community!
You’ve reached your limit of 3 free monthly articles. Please enter your email to unlock 2 more articles.
Already have an account? Sign In bfb7c3-7eeeb8-077432-43b25c-dc5c51
Already have an account? Sign In bfb7c3-7eeeb8-077432-43b25c-dc5c51
Reports you haven't read
RATES SURGE ON HIGHER FOR LONGER As expected, Fed Chair Powell took to the podium yesterday and kept interest rates unchanged. Concurrently, he unveiled the Fed’s new dot plot, which forecasts one more rate hike for this year but two fewer cuts for the next year. This was perceived as more hawkish than anticipated by both traditional and crypto markets. The dot plot and Powell's rhetoric collectively signal a 'higher...
TACTICAL CAUTION Throughout this year, we've been navigating a complex interplay between overarching macro influences and crypto-specific events. Milestones such as BlackRock's ETF application, Ripple's legal win over the SEC, and Grayscale's similar success have been promising, yet they've occurred amidst a peak in global liquidity. This timing has effectively curtailed any long-lasting bullish momentum in the crypto markets. While we've been vocal proponents of maintaining risk exposure, the convergence...
THE US DOLLAR WRECKING BALL CONTINUES Last week, our near-term outlook remained uncertain, though we leaned toward the possibility that a positive catalyst, such as a victory for Grayscale, could coincide with easing liquidity conditions. This would mark a significant departure from the tightening conditions—indicated by the DXY—that followed the last two crypto-specific catalysts this year. The likelihood of interest rates reaching a peak, the dollar beginning to decline, and...
GRAYSCALE VICTORY As recently discussed, we’ve been awaiting either short-term relief in liquidity conditions—indicated by falling interest rates, a declining DXY, and increasing central bank liquidity—or the realization of crypto-specific catalysts for better price action. This week, we received encouraging news on both fronts. The courts have ruled that the SEC acted in an arbitrary and capricious manner when denying the spot Bitcoin ETF. _Source: Court Decision in Grayscale v...
