Trakx Weekly Update: July 22

Key Crypto Market Figures

CTIs Weekly Performance

Crypto prices continue to be buffeted by political developments, particularly in the US ahead of November’s presidential election. Over the past week this impact translated into solid gains as evidenced by the Trakx Top 10 Crypto CTI gaining 10%. Amongst the suite of Trakx CTIs, the top spot in the performance table was taken by the Meme CTI, which rose 29%, whereas last place was filled by the Lending CTI, whose value rose by a more modest 0.8%.

The extension of the rally catalysed by the assassination attempt on Donald Trump on July 13, which was viewed as boosting the election chances of the most pro-crypto candidate, came after Trump revealed his pick for vice president. Rather unexpectedly Trump decided to go with JD Vance, the Senator for Ohio, who after working at a VC in Silicon Valley is positively disposed towards crypto and tech in general. In fact, not only has Vance been publicly critical of the SEC’s negative attitude towards crypto under Democrat-nominated Gary Gensler, but his financial disclosures confirm he is the first candidate on a presidential ticket that holds crypto – Bitcoin in his case. As a result, victory by Trump/Vance in November is widely expected to result in a handbrake turn in the attitude of the US administration towards digital assets, and it is the rising odds of this scenario that is getting priced in by investors.

The news over the weekend that Biden decided to quit the race after substantial pressure from leading Democrats to stand aside amid worries about the health of the 81 year old presidential candidate did little to alter these odds. This is because the current favourite to replace Biden is Kamala Harris. Crypto players may have celebrated this somewhat unexpected development by pushing up the price of KAMA – a meme coin dedicated to the current vice president – to an all-time high, but the reality is Harris is unlikely to beat Trump in the race to the White House. Indeed, the polls show that there are no plausible Democratic challengers to Trump except for former first lady Michelle Obama, but she has repeated denied any interest in seeking to follow in her husband’s footsteps.

A final positive came from the ending of sizeable Bitcoin sales from the US and German governments and Mt Gox creditors, supply pressure that had weighed on the price of the seminal cryptocurrency and the broader crypto market. That said, there is some speculation that the newly elected Labour government, the first left-wing government in the UK in 14 years, may follow the lead of their peers and liquidate 61,245 seized Bitcoin to provide a politically painless $4bn boost to their spending plans.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Trump’s VP pick, JD Vance, could mean a new era for crypto: Cointelegraph
• Gemini’s Winklevoss Twins Donate $1M to “Unseat” US Sen. Elizabeth Warren: cryptonews.com
• Bitcoin as US Reserve Asset: Can Trump do it and what would it mean?: cryptoslate.com
• Kamala Harris Meme Coin Soars to All-Time High After Joe Biden Drops Out: Coindesk
• Will UK Labour gov’t follow Germany’s example and liquidate 61,245 BTC?: Cointelegraph
• Man Gets Meme Coin Address Tattooed—But There’s a Typo: Decrypt

Trakx News

• We are very pleased to announce that we have been mandated by the Cardano Foundation to build a Cardano ecosystem CTI, stay tuned!

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.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.