Market Commentary
After 846 days since the last all-time-high, Bitcoin finally surpassed US$69,000 on Tuesday. Simultaneously we observed all-time-highs reached in Bitcoin futures open interest as well as inflated funding rates, indicating an influx of retail interest entering the market. Shortly after the peak, Bitcoin saw a flash crash on some exchanges – flushing out over a US$1 billion in long positions, sending Bitcoin down by 14% before swiftly levelling to around $65,000. The volatility displayed this week is typical for a strongly bullish market with retail speculative flows taking ever larger leveraged positions. Indicative of the bullish sentiment – several ‘memecoins’ have reached all time highs in the past month.
While retail investors are accumulating this week, professional investors are not far behind. Blackrock has filed to include spot Bitcoin products as part of its Strategic Income Opportunities Fund (BSIIX) – with US$36.5b in assets under management. A move like this is transformational for institutional adoption, with the BSIIX being one of many approved product lists. This news comes at a time when professional and institutional investors ponder how Bitcoin fits into traditional portfolios
The SEC has again delayed making a call on spot Ethereum ETF approvals. The original application was filed in November and the March deadline has now shifted. Bloomberg analysts put the odds of an Ethereum ETF approval at 70%, but its potential security implications make it a more difficult proposition for the SEC. In the meantime, alternate chains continue to flourish – most notably Solana briefly trading near the US$150 mark, up 45% year to date.
CEO Comment
The Gap between Bitcoin and the S&P 500 has narrowed to 9%, further dropping from 17% last week. The closing of the Gap has aligned with Bitcoin reaching all time highs, with an expectation for parity with the S&P 500 any day now – noting that this seemed impossible some months back. We invite you all to register for our analyst information session next week to hear more on the drivers of Bitcoin’s path to US$100,000 (beyond ETFs).
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:
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, remain flat at circa 41%. There is a big opportunity here, as we see this as a selective opportunity to identify and grow our alts portfolio via our “alThematics” work.
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.
