Trakx Weekly Update: December 4
Key Crypto Market Figures
CTIs Weekly Performance
The crypto rally resumed in earnest last week with the Trakx Top 10 Crypto CTI gaining just shy of 5% over the prior seven day period. Top of the performance pile was the DEX CTI, which added 7%, meaning the index has more than doubled since the start of the year. This solid performance was almost matched by the Diversifier CTI, which added just a tad under 7%. At the other end of the return stack, the CEX CTI slipped for a second successive week, albeit a much more modest 1%.
Last week’s crypto gains were fairly broad-based with only a handful of the top 100 tokens by market cap recording negative w/w returns. The rally came amid increased investor conviction that the Fed tightening cycle is over. While Chair Powell on Friday left open the door to additional monetary tightening, he added the caveat that it would only occur if it was judged “appropriate”. Investors took this caveat to be a subtle sign that the Fed does not believe conditions warrant a rate hike at present. Coming after FOMC board member Wallers’ comment earlier in the week that he was “increasingly confident [Fed]policy is well-positioned to slow the economy and bring inflation back to 2%”, the lack of overt hawkishness from Powell provided a shot in the arm to all risk assets. It was certainly sufficient to propel Bitcoin above the psychologically significant $40,000 mark – its highest level since the May 2022 crash triggered by the implosion of the Terra stablecoin.
An additional factor that helped spur positive sentiment in crypto was the news that the SEC had met with several firms who have applications filed for a spot BTC ETF, including BlackRock and Grayscale, late last month. This increased level of engagement by the US regulator was taken as a further encouraging sign that the SEC will allow such products, potentially early in the new year, opening crypto up to a larger and more diverse investor base.
While most eyes were on the major cryptocurrencies, the strongest gains were seen in the alt-coin segment, as they are seen as offering a higher beta bet on improved sentiment. It was due to this broadening out of the crypto rally that helped the DEX CTI post the strongest gains last week, on the back of a 25% gain in the value of Rune, the native token of Thorchain, and the 15% jump in Synthetix.
Sources: Trakx, Coingecko, Alphavantage
- Bitcoin Tops $42K as Crypto Market Recovers to Pre-Terra Levels: CoinDesk.
- SEC meets with Grayscale, BlackRock about potential bitcoin ETFs: CNBC.
- Bitcoin ETF’s 60% surge in Canada signals what’s coming in the US: DLNews.
- US Space Force Major urges Defense Department to adopt Bitcoin as an ‘offset strategy’: CryptoSlate.
- Avalanche, Helium Lead Monthly Crypto Gains as Bullish Bitcoin Consolidation Spurs Altcoin Season Call: CoinDesk.
- Lionel Rebibo discussed the future of finance and Trakx’s role in the crypto space with FinMag.
- Ryan Shea published the November crypto monthly update Crypto Clean Up.
- Trakx and Lionel Rebibo will be attending Finnov’ on Dec 7, hosted by Finance Innovation, at Station F, Paris.
Trakx CTIs Performance
Sources: Coingecko and AlphaVantage
*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.