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digital asset
June 14, 2024
7 min read

DigitalX Weekly Crypto Update: Market Trends and Analysis

19-26 April 2024

This week's latest trends and insights in the digital asset market from our asset management team.

Market Commentary

Bitcoin’s price dropped below US $67,000 as the week came to a close however it did briefly breach US $70,000 following the release of the U.S. Consumer Price Index which shows signs of inflation cooling. Despite the figure coming in lower than expectations, Fed chair Jerome Powell’s tone at the FOMC conference was more hawkish then market participants expected. At the time of writing, the CME Fed Watch Tool estimates a 89% chance of interest rates remaining unchanged following the July FOMC meeting. The first expected rate cut in September is currently estimated at a 63% probability with a December rate cut estimated at 48% probability. The Federal Reserve’s continued higher for longer approach has even prompted prominent US Senators to urge the Federal Reserve to cut the federal funds rate from its current, two-decade-high of 5.5 percent. 

Issuers of Ethereum ETFs are working on their S-1 filings with the SEC Chair Gensler saying he expects the ETFs to trade “over the course of summer” or between now and November. Staking has been excluded from all of thee products due to regulatory uncertainties and the U.S. Securities and Exchange Commission’s stance on staking activities within such funds. Some analysts believe that the removal of staking would make these products less attractive; nonetheless it would open large pools of capital which were previously unable to access Ethereum as an asset. 

Finally, Donald Trump is throwing some weight behind Bitcoin miners quoting “the rest of the cryptocurrency should be mined in the United States” and “We want all the remaining Bitcoin to be MADE IN THE USA!!!”; this led to a rally in Bitcoin mining stocks led by TeraWulf which was up ~20% at one point.

CEO Comment

The Gap between Bitcoin and the S&P 500 has widened to 9%, from 5% last week, online with Bitcoin sell-off as we track the beta of broader markets. 

As for the shift list, which we define as the major events and announcements facilitating the broader market’s transition to Web3 financial rails or the internet of value, the top shifts for this week include:

  1. The 56% stat of Fortune 509 companies looking at on-chain projects is mind blowing and is a key “watch this space” number. 
  2. Corporates adopting Bitcoin treasuries is key to the shifting to Web3 financial rails – here.

Our Top “alts shifts” for this week, featuring shifts in our altcoin universe that drive our thematic approach, saw the second gap, or the broader digital asset market, drop ever so slightly to circa 42%. I want to reiterate that this is a big opportunity, as mentioned we see this as a selective opportunity to identify and grow our alternatives portfolio via our “alThematics” work. The gaps themselves are proving to be a risk on, risk off proxy and hugely high Beta – volatility is a certainty and an opportunity – the building is happening no matter what.

  1. We welcome new investable opportunities and you may see more ZK in our portfolio with airdrops like this.

What are our favourite thematics for 2024? We continue to like any infrastructure plays of the shift from Web2 to Web3 financial rails and any plays in the real-world asset tokenisation infrastructure, data validation and decentralised storage, as well as scale-up technologies such as ZKrollups. We are closely following all the ”de’s” – DeFi, DePin, DeSoc – (want to know what that means? – message us).

Lisa Wade, CEO DigitalX

 

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

 

Market Updates

The Shift List

Macro and Regulatory Environment

 

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.

Disclaimer:

DigitalX Asset Management Pty Ltd is a corporate authorised representative (CAR) of Boutique Capital Pty Ltd (AFSL 508011), and True Oak Investments Ltd (AFSL 238184). To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service. The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.

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