Trakx Weekly Update: September 23

Key Crypto Market Figures

CTIs Weekly Performance

For a second successive week crypto stayed in the green with the Trakx benchmark Top10 Crypto CTI gaining 5%. Even more impressive though were the gains in the AI and NFT Metaverse CTIs. Both indices saw double-digit percentage point gains over the prior seven day, up 11.6% and 10.5% respectively. Such was the breadth of the last week’s crypto rally that even the worst performer amongst the suite of Trakx products, the Interoperability CTI, finished in positive territory, gaining 0.4%.

Driving the continued rise in crypto prices was the Fed’s decision to start its much anticipated easing cycle with a 50bp cut – a magnitude that was at the upper limit of market expectations. Going in to the Fed rate decision there was some uncertainty as to how investors would respond in the event of a 50bp cut, given that US central bankers typically like to move in more cautious 25bp increments and therefore a larger move could be viewed as panicky amid the recent recession speculation. However, at the press conference Chair Powell made it clear that he and his FOMC colleagues viewed the economic outlook as solid and that the magnitude of the cut was an acknowledgement of the progress that had been made towards satisfying their dual mandate (price stability and full-employment) and their confidence that both objectives would continue to be met. In essence, Powell announced what could only be interpreted as a “bullish” rate cut. Certainly that is how investors reacted given that US stocks hit new cycle highs and, while not quite there yet, crypto was marching in the same direction.

Reinforcing the crypto positive mood, BlackRock last week published a nine-page document outlining how Bitcoin’s characteristics differs from tradfi asset classes and that as result of these differences it has not only outperformed in seven of the past ten years but is uniquely placed to serve as a portfolio diversification tool. Arguably, there is nothing new in the information that BlackRock published with many Bitcoin fans, myself included, have made these points previously. However, the fact that the world’s largest asset manager is making such arguments gives them increased credibility with an audience that extends well beyond crypto bros and hence it is a potential facilitator to wider crypto adoption.

Finally, as if campaigning to become the next President of the US and being shot at for a second time was not enough, Donald Trump burnished his crypto credentials by becoming the first leader of the US to make a public transaction in Bitcoin at a crypto-themed New York bar. In addition, he launched World Liberty Financial, a DeFi project that seeks to connect crypto lenders and borrowers without the need for a centralized intermediary.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Bitcoin is up 6% since the Fed rate cut. What’s next?: Blockworks
• BTC rallies past $62.6K after BlackRock issues Bitcoin white paper: Cointelegraph
• Former President Donald Trump Pays for Burgers With Bitcoin at New York Bar: DailyHodl
• Donald Trump Launches World Liberty Financial, Team Unveils Token Details: Decrypt
• ‘Satoshi Era’ Wallets Move $16M in Bitcoin After 15 Years of Dormancy: CoinDesk

Trakx News

• The public sale of $TRKX is set to take place in late September! The TRKX token will unlock the full potential of Trakx, and it will be offered on major launchpads, including @daomaker, with more to be revealed soon.
• We will be at the Patrimonia Conference in Lyon on September 25 & 26 and look forward to meeting our IFA clients and prospects.

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.