Trakx Weekly Update: May 20

Weekly Update
• May 20, 2024
Trakx Weekly Update: May 20

Key Crypto Market Figures

Trakx Weekly Update: May 20

CTIs Weekly Performance

Crypto asset prices regained positive momentum last week, aided in part by a benign US CPI report showing core inflation declining to its lowest level in three years, prompting investors in both crypto and tradfi assets to increase the odds of the Fed easing in light of this disinflationary trend. The data not only provided a 5% boost to the flagship Trakx Top10 Crypto CTI, but it lifted all but four of the Trakx CTIs. Of those, the best performer was the Top10 DeFi CTI, which gained 10% over the prior week, closely followed by the Interoperability and ESG CTIs (both up 9%). Lagging on the performance table was the Recovery CTI, which slipped 2%.

In addition to the US macro news, crypto sentiment received a lift from the release the 13F spot Bitcoin ETF filings ahead of the May 15th SEC deadline. The disclosures confirmed that over 700 professional investment firms with AUMs exceeding $100mn, had holdings worth more than $5bn in Bitcoin ETFs. Millennium Management and Schonfield Strategic Advisors - two hedge funds - had amongst the largest holdings, but it was purchases by the State of Wisconsin Investment Board (a state pension fund) and Bracebridge Capital, who manages endowments for Yale and Princeton Universities, that attracted the most attention. Overall, the data confirm that not only did the spot Bitcoin ETFs have a stellar launch but, as had long been anticipated in the crypto space, the institutions are (finally) coming.

While it may not be apparent from just looking at the 3.6% weekly gain in the Meme CTI, it was a hectic week in the land of the mind virus. Early on in the week, the Meme CTI was up as much as 12% after the unexpected return of Roaring Kitty – the person who triggered the short-squeeze in the share price of US retailers GameStop back in 2021. Last weekend he sent out a single tweet containing a cartoon image of a gamer sitting forward in his chair. That was it. No text, no explanation, nothing else. It was, however, enough to propel the stock price of GameStop up by roughly 100%, resulting in $1bn shorts being liquidated. However, even more eye popping was the 2,000% rally in GME, a tribute crypto token deployed on Solana – a rally that buoyed the entire meme coin sector. Unlike the 2021 affair, the short squeeze proved much more transitory, especially as GameStop decided to use the rally to raise $250mn in new equity capital, which saw meme coins give back a large chunk of their weekly gains.

Finally, as mentioned last week, crypto is set to become a serious wedge issue in the US Presidential race. This is especially true after the US Senate voted 60-38 last week to strike down the SEC’s SAB 121. Although it doesn’t sound like much, the accounting standards rule makes it more expensive for financial institutions to get into the crypto custody business and hence is seen as a impeding wider adoption. Prior to the vote, the White House stated President Biden would veto the bill if it made it to his desk. Well, after the vote, the bill will indeed make it to his desk as their were no enough votes to override the veto. The question is whether he has the courage to stick with his prior conviction in light of the breadth of support in the Senate, which included several leading Democrats such as Senate Majority leader Chuck Schumer. Interesting times ahead!

Trakx Weekly Update: May 20

Sources: Trakx, Coingecko, Alphavantage

Market Trends

  • Bitcoin price taps $64.7K as US CPI shows core inflation at 3-year low: Cointelegraph
  • Bitcoin ETFs drew bets from Millennium Mgt, Wisconsin Retirement System in Q1: Reuters
  • The GameStop surge is reigniting crypto’s memecoin craze — here are the winners: DLNews
  • US Senate passes measure withdrawing SEC accounting bulletin: The Block
  • Tornado Cash Developer Alexey Pertsev Found Guilty, Sentenced to 64 Months in Prison by Dutch Court: CoinDesk

Trakx News

  • Trakx Discord is now public and accessible to all, join our community!
  • You still have plenty of time to participate in our Airdrop Campaign, please join!
  • Reminder of our current offer, all Trakx users to receive an annualized 10% reward on deposits. For details please click here.

Trakx CTIs Performance

Trakx Weekly Update: May 20

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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