Trakx Weekly Update: March 10

Key Crypto Market Figures

CTIs Weekly Performance

It was another very choppy week in the world of crypto – evidenced by the double digit daily percentage point moves in our Top10 Crypto CTI – as investors had a lot of news to digest (see below). After the dust settled, the net impact was decidedly bearish, with our benchmark CTI losing 21% over the prior week. In last place in the return table was the previous week’s star performer, the Cardano Ecosystem CTI, after it slid 35%. By contrast, top of the performance stack was the Bitcoin Momentum CTI. As designed, it protected its holders from bear market moves, holding its value over the past seven days

US Strategic Crypto Reserve

Once again President Trump delivered on one of the key election pledges made to crypto supporters when he signed an executive order last Thursday establishing a US Strategic Crypto Reserve. Having the previous week named five tokens – XRP, Solana, Cardano and (belatedly) Bitcoin and Ethereum – as likely candidates for inclusion, hopes were high that when announced the strategic reserve would result in a previously untapped source of demand, which provided an nice early fillip to crypto prices.

Unfortunately for the bulls, the executive order outlined that the strategic reserve would be initially seeded by Bitcoin previously seized by the US government during earlier criminal or civil cases, ie it would not require any fresh official purchases. Moreover, given the requirement for “budget neutral strategies” for acquiring more crypto, which strongly suggests the federal government will not be buying in the secondary market any time soon, it was not immediately clear how the strategic reserve will operate, nor how it will achieve its stated objective of maximizing the value of its crypto holdings. As a result, crypto prices dropped sharply as these details were unveiled, especially Cardano and tokens related to its ecosystem given they were very much wildcards for inclusion prior to Trump’s announcement the week prior.

White House Crypto Summit

Staying with the US, the White House last Friday also hosted the first of what is expected to be a series of crypto summits with leading industry figures. While much anticipated, this watershed event failed to lift the mood of investors with nothing further forthcoming about the newly created strategic reserve. Rather the only deliverable from the summit, in addition to assurances that it would adopt a much lighter regulatory approach to the asset class (admittedly, a welcome break from the Biden administration) was the outlining of a framework for stablecoin legislation before August. The decision to prioritise stablecoins by Trump and his team makes sense given that Treasury Secretary Bessent made clear the administration see stablecoins as a key mechanism to ensure the US dollar remains the dominant reserve currency in the world – an outcome that, it is fair to say, is not at the top of the wish-list of most crypto investors (and certainly not for Bitcoin maxis).

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Trump signs order to establish strategic bitcoin reserve: Reuters
• XRP, ADA, SOL Fall Harder Than BTC as White House Crypto Summit Fails to Wow Traders: CoinDesk
• Trump tariff ‘psychodrama’ tanks Bitcoin price ahead of crypto summit: DLNews
• Trump Plans to ‘Rescind and Amend’ IRS Crypto Tax Rules, Sign Stablecoin Bill By August: Decrypt
• NFT trading volume has tumbled 63% since December: CoinTelegraph

Trakx News

• We just launched a new thematic CTI, the CTI AI Agents, composed of the top 20 AI Agent tokens.
• The Trakx Referral Booster Program is live for just another couple of days (until March 15).
• The IFA team will meet you in Montpellier, on March 27. Contact [email protected] for more details.
• Lionel and the IFA team will be in Paris, for the Next Gen Patrimoine Conference, on March 28.

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.

Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors with a high degree of compliance, custody and liquidity.

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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.