Trakx Weekly Update: June 17

Weekly Update
• Jun 17, 2024
Trakx Weekly Update: June 17

Key Crypto Market Figures

Trakx Weekly Update: June 17

CTIs Weekly Performance

In general, crypto prices witnessed a modest pull-back last week as evidenced by the 4% decline in the Trakx Top10 Crypto CTI. The best performer within the suite of Trakx CTIs, with a flat performance over the prior seven day period, was the defensive Inflation Hedge CTI. By contrast, the more volatile altcoins experienced the brunt of the selling pressure as highlighted by the double digit weekly declines in the NFT Metaverse, Gaming and AI CTIs.

Weighing on both prices and sentiment was a more hawkish than expected Fed. The updated dot-plot, which provides a graphical representation of the FOMC views on the likely future direction of US monetary policy, showed only one 25bp cut by year-end. The more modest pace of easing than investors had pencilled in prior to the meeting reflected concerns by US central bankers that inflation pressures remained elevated notwithstanding last week’s CPI report coming below consensus estimates both on the headline and core measures.

Lacklustre price action did not, however, put off Donald Trump who reinforced his credentials as crypto’s champion in this year’s presidential race. Last week he met with key figures in the Bitcoin mining community and expressed his strong support for keeping Bitcoin mining in the US arguing that it was the “last line of dense against a CBDC” (central bank digital currency). Trump’s support contrasts markedly with the Biden administration who earlier this year re-introduced their proposed 30% tax on digital asset mining – a policy response to the perceived negative environmental impact of crypto miners despite such assessment being increasingly at odds with reality as we have explained in previous commentary.

In addition to the generalized malaise in altcoins, weakness in the AI CTI was triggered by the Artificial Superintelligence Alliance (ASI) – a proposed amalgamation of three separate decentralized AI projects (Ocean Protocol, SingularityNET and Fetch.ai) - announcing the postponement of their merger. Originally scheduled for June 13, the merger, which would see the native tokens of the three projects (all constituents of the AI CTI) combined via a token migration contract, is now slated for July 15. The rationale given for the delay was ongoing technical requirements and their desire to ensure a smooth transition. While the leaders of these three projects reiterated their commitment to the merger, the delay unsettled some crypto players prompting them to scale back their exposure.

Trakx Weekly Update: June 17

Sources: Trakx, Coingecko, Alphavantage

Market Trends

  • Bitcoin Prices Continue Roller-Coaster Volatility After FOMC Announcement: Forbes
  • Donald Trump Pledges to Champion Bitcoin Mining in Historic Meeting With Industry Leaders: Bitcoin.com
  • Biden’s Nonsensical Proposed 30% Tax Would Kill Bitcoin Mining in the U.S.: Coindesk
  • Gensler confirms spot Ethereum ETFs will be approved ‘this summer’ during Senate hearing: CryptoSlate. Artificial Superintelligence Alliance Token Merger Postponed: The Crypto Times. MiCA regulation takes shape under EBA’s newest guidelines: Cointelegraph.

Trakx News

Trakx CTIs Performance

Trakx Weekly Update: June 17
Trakx Weekly Update: June 17

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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