Trakx Weekly Update: Pump and (Cramer) Dump?

Key Crypto Market Figures

CTIs Weekly Performance

Last week saw digital asset prices in consolidation mode after a month of solid gains. Our flagship large cap Top10 Crypto CTI was essentially unchanged after increasing by just 0.4%. The top performer last week was the Recovery CTI, after it rallied by more than 7%, closely followed by the Centralized Exchange CTI, which finished almost 6% higher. At the other end of the return spectrum, last place went to the AI Agents CTI, given the 7% drawdown seen over the preceding seven days.

Altcoin Season Incoming?

One of the more interesting features of the current crypto rally—stretching back to the bear market low of November 2022—is that Bitcoin has led the charge. Its share of the total crypto market cap, known as its dominance ratio, climbed from around 40% to a peak of 66% late last month. That’s unusual. In previous bull markets, Bitcoin typically gave up ground to higher-beta altcoins—smaller, more volatile tokens—as the rally matured. That said, over the past week or so, things have started to shift. Bitcoin has underperformed relative to other tokens (notable ETH), leading to its dominance ratio dropping by several percentage points. This sudden move lower has sparked fresh speculation that “altcoin season”— the period when non-Bitcoin tokens outperform—may finally be kicking off.

Pump.(notso)fun

Earlier this month the meme coin launchpad, Pump.fun, had a very successful ICO, raising over $600 million in a matter of minutes. Unfortunately, for many participants in the offering, the euphoria wasn’t long-lived. In fact, since launch, the PUMP token has lost more than 60% of its value. Many token holders attribute this substantial underperformance relative to the broader crypto market to participants in the separate $720 million private sale dumping their tokens on the open market immediately after the ICO. Last week saw the sell-off extend after Pump.fun co-founder Alon Cohen confirmed that while more PUMP tokens would be issued—a move holders hoped would help them recoup some of their losses—any airdrop would not be “imminent.”

It’s So Over

Celebrity endorsements for financial products like credit cards and payment apps are common, and crypto is no exception. The NFT space, in particular, has seen its fair share of influencer shoutouts, often seen as valuable PR—especially for an asset class still in its early adoption phase. However, there’s one endorsement the crypto world dreads: a bullish call from CNBC’s Jim Cramer. The track record of his investment calls is so notoriously poor that an Inverse Cramer ETF was created in 2022 to bet against them. So when Cramer last week said he wants to own Bitcoin as a hedge against the $37 trillion US federal debt, even though his logic is sound, history suggests his blessing might spell short-term trouble for the asset class.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Bitcoin’s Dominance Slides by Most in 3 Years as BTC’s Correlation With Altcoins Weakens: CoinDesk
• US spot Ethereum ETFs log second-biggest week with $1.85 billion in net inflows: The Block
• DOGE, PEPE, PUMP Bleed As Pump.fun Confirms No Airdrop ‘In Immediate Future’: Decrypt
• ‘I’m Very Worried About My Kids’ – Mad Money’s Jim Cramer Says Bitcoin Is the Hedge Against $38T Debt: Bitcoin.com
• House recess over Epstein files standoff stalls crypto policy push until September: CryptoSlate

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.