Trakx Weekly Update: October 28

Key Crypto Market Figures

CTIs Weekly Performance

This week in the crypto market, institutional activity remains a key driver of price dynamics, with BTC ETF inflows reaching nearly $1 billion. This marks the third consecutive week of positive flows, underscoring growing institutional interest as the market eyes regulatory approval for multiple spot Bitcoin ETFs. In response to this influx, Bitcoin’s dominance has edged upward, indicating that capital is increasingly consolidating around blue-chip assets.

Retail & Institutional Sentiment
Retail sentiment also strengthened, with retail BTC holdings growing by 18,000 BTC since July, showing sustained interest from small investors. On the other hand, options data suggests a 9.58% implied probability that BTC will surpass $100,000 by year-end, indicating that the options market is optimistic about Bitcoin’s price prospects.

Global Economic and Political Impacts
Geopolitical factors remain a source of volatility, with the recent escalation in the Middle East adding fuel to risk-averse trades. As bond yields rose mid-week, markets experienced a mild pullback, pressuring Bitcoin and risk assets; however, BTC saw a rapid rebound, highlighting robust demand during price dips. Meanwhile, the VIX (volatility index) rose to 20, suggesting markets are cautious but not yet in panic mode.

Altcoin and Sectoral Trends
This week, Trakx’s Top10 Crypto CTI experienced a slight decline of -1.7%, reflecting cautious market sentiment amid macroeconomic uncertainties. However, Trakx’s Decentralised Exchange CTI emerged as the best-performing sector, with a +2.2% gain. Meanwhile, the AI CTI faced the steepest drop, down -12.9%, followed closely by the NFT Metaverse CTI at -12.2%, as both sectors encountered sell-offs.

Regulatory Developments
On the regulatory front, the Department of Justice has launched an investigation into Tether’s potential misuse by third parties for illegal activities, which may introduce further scrutiny on stablecoins. Additionally, Denmark has proposed a “mark-to-market” tax for crypto, reflecting the trend of governments aligning crypto assets with traditional financial regulations.

Looking Ahead
With the U.S. election approaching, market watchers anticipate volatility as betting markets currently favor a Trump win, which is perceived as favorable for risk assets like crypto. Key U.S. economic data releases this week—including Q3 GDP and core PCE inflation metrics—may influence both crypto and traditional markets. If inflation moderates, it could support further BTC price appreciation as investors seek inflation-resistant assets.

In summary, the week’s crypto market movement is shaped by institutional inflows, retail accumulation, macroeconomic indicators, and geopolitical tensions. Bitcoin and blue-chip assets appear well-supported, while altcoins and sector-specific tokens face selective investor interest ahead of the U.S. election.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Retail BTC holdings surged, increasing by 18,000 BTC since the July local bottom: TheBlock
• BTC ETF net inflows reached $997.7 million for a third week, signaling strong institutional interest: CoinStats
• Microsoft’s shareholder guidance opposes Bitcoin as a diversification investment: Fortune.
• DOJ investigates potential misuse of Tether in illicit activities: Cointelegraph
• Denmark proposes “mark-to-market” taxation for crypto: TheBlock.
• Coinbase introduces “Based Agent” to quickly set up crypto wallets with AI agents: Coingape

Trakx News

• TRKX trading competition with Cede Store is ongoing and will end in two weeks.
• Zealy campaign is live.
• TRKX liquidity mining campaign is live on Merkl.

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.

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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.