Trakx Weekly Update: November 20

Key Crypto Market Figures

CTIs Weekly Performance

After the recent stellar gains, crypto markets were in consolidation mode last week, with the Trakx Top 10 Crypto CTI off by 1% over the past week. The best performer was the Diversifier CTI, which rallied more than 10%, while the weakest performer was the Interoperability CTI, which slipped 4% over the week.

Large cap cryptocurrencies may have been relatively unchanged over the past week, but this metric masks the fact that early on momentum was still fairly positive as evidenced by Bitcoin rising to an 18-month high of $37,000. The subsequent pull back was triggered by the SEC passing up a window of opportunity to green light several spot Bitcoin ETsF – speculation of which had increased over preceding weeks. Although disappointing to crypto bulls, it is worth noting that the SEC could have decided to reject the applications outright but instead chose only to delay its decision. According to the updated filings, the new decision deadline for the SEC is January 1, 2024.

One crypto hotspot last week was in AI-themed tokens. Fetch.ai and SingularityNet rallied 37% and 25% respectively. Both tokens are constituents of the Diversifer CTI and were responsible for making it the best performer over the past week. The surge came amid speculation that Sam Altman, who was ousted as CEO of OpenAI last Friday (a move that came as a shock to most), could potentially return to run the company he helped co-found. As it transpired, instead of moving back to OpenAI, Microsoft today announced Sam Altman and Greg Brockman (another OpenAI co-founder) would be joining Microsoft “to lead a new advanced AI research team”. While clearly not great news for OpenAI, by bringing in Sam Altman onboard it is clear that one of the world’s leading tech companies continues to see AI as a pivotal technology to reshape the digital world, providing a sentiment boost to cryptocurrencies associated with AI.

Another standout last week was AVAX, the native token of Avalanche and constituent of the Top10 PoS and Top Blockchains CTIs. It rallied 24% on news that JP Morgan would utilize its blockchain, specifically a permissioned Avalanche Evergreen subnet, as part of a Proof-of-Concept collaboration with Apollo Global under the Monetary Authority of Singapore’s (MAS) Project Guardian. The move represents a further step closer to a world of on-chain finance where blockchains, smart contracts and tokenized RWA replace legacy capital markets infrastructure.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• The SEC’s window to greenlight a spot Bitcoin ETF is closing. What’s next?: DLNews.
• Fidelity seeks green light for Ethereum ETF, following BlackRock’s filing: Cointelegraph.
• Microsoft hires former OpenAI CEO Sam Altman: TheVerge.
• JP Morgan’s Onyx Taps Avalanche for Tokenized Funds, AVAX Jumps 14%: Decrypt.
• FTX’s Solana sell-off triggers 7% price drop in crypto asset: CryptoSlate.
• Javier Milei Wins Argentine Presidency; Bitcoin Gains Nearly 3%: CoinDesk.

Market Trends

• Ryan Shea published: “Crypto Impact: Fourth Turnings, End Times And Long-term Debt Cycles” examining the connection between cryptocurrencies and a cyclical view of history that prophesied two decades of tough times for the US beginning in 2005.

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.