Trakx Weekly Update: May 13

Weekly Update
• May 13, 2024
Trakx Weekly Update: May 13

Key Crypto Market Figures

Trakx Weekly Update: May 13

CTIs Weekly Performance

For an asset class widely denigrated for its excessive volatility, crypto prices are doing their very best to be as boring as possible of late firmly sticking to their recent ranges – albeit towards the lower end as evidenced by the 5% pull-back in the Trakx Top 10 Crypto CTI last week. As often happens during consolidation periods, the defensive Inflation Hedge CTI (comprising Pax Gold, USDC and Bitcoin) was top of the Trakx weekly performance table, gaining 1%, while the Meme CTI was the weakest performer, slipping 11% last week.

Zooming out from the recent lacklustre price action, one should recognize that crypto is still one of the best performing asset classes. In fact, from the cycle low witnessed in the immediate aftermath of the FTX bankruptcy in November 2022, the Trakx Top10 Crypto CTI has more than doubled in value. One consequence of this sustained rally is FTX CEO John Jay Ray III – a bankruptcy professional appointed by the board after the Chapter 11 filing - last week detailed a new reorg plan that would see 98% of FTX creditors have their claims on the company made whole. As compensation for the “time value of their investments” they will also receive an additional 18% interest on the dollar amount of their holdings as valued at the date of the bankruptcy petition. The proposal, worth around $15bn, is higher than previous estimates and certainly a lot better than many other creditors receive during the bankruptcy process. Despite this, some FTX creditors are unhappy with the offer and have filed a lawsuit arguing that that if they had access to the underlying crypto then the gains would be significantly higher than the updated FTX proposal.

Crypto also featured in the race for the next US President last week after Donald Trump made a speech stating that “if you’re in favour of crypto you’d better vote for Trump”. By choosing to support digital assets, Trump is hoping to distance himself from the Biden administration which is widely viewed as hostile to the industry. The latest evidence of this hostility is the White House released a statement warning that if a resolution approved by the US House of Representatives seeking to roll back the anti-crypto banking policies being pursued by the SEC was passed that President Biden would veto it. With less than six months until the Presidential election it seems certain that crypto will be one of the hotspots of contention.

Finally, this week will see the release of the April US CPI data. The consensus forecast is for inflation to tick lower both on the headline and core measures. If confirmed, this could be the catalyst to jolt the market back to life because uncertainty about when the Fed will begin cutting interest rates have been one of the factors that has contributed to the range-bound price action over the past several weeks.

Trakx Weekly Update: May 13

Sources: Trakx, Coingecko, Alphavantage

Market Trends

  • Nearly All FTX Creditors Will Get 118% of Their Funds Back in Cash, Estate Says in New Plan: Coindesk
  • ‘I’m Good With It’—Donald Trump Just Sent The Price Of This Tiny Bitcoin Rival Soaring: Forbes
  • Biden Vows to Kill Bill to Retract SEC Crypto Banking Policy: Decrypt
  • Franklin Templeton CEO says all ETFs and mutual funds will be on blockchain: Cointelegraph
  • Bitcoin Network Tops 1 Billion In Total Transactions Processed: Bitcoin Magazine

Trakx News

Trakx CTIs Performance

Trakx Weekly Update: May 13

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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