Trakx Weekly Update: September 30

Key Crypto Market Figures

CTIs Weekly Performance

Most crypto investors have had their focus firmly set on Washington over the past couple of months, which is not surprisingly given all the political noise coming from the presidential campaigns ahead of November’s vote and given the anticipation about the long-await Fed rate cut.

As we outline in the soon-to-be-published September Crypto Monthly, the Fed joining their North American and European counterparts in easing monetary policy sets the stage for more expansive global liquidity conditions, and this has provided the asset class with a positive tail wind. Last week, however, this liquidity expansion received a major boost after the Chinese government announced its largest economic stimulus package since the pandemic to ensure its 2024 5% economic growth rate target is achieved. News of the unexpected Chinese stimulus, which encompassed almost $300bn in additional deficit-financed fiscal spending and monetary policy easing in the form of interest rate cuts and reserve requirement cuts, was sufficient to send crypto prices higher as reflected in the 5% rally in the Trakx Top 10 Crypto CTI.

That said, the gains seen in the largest cap cryptocurrencies were dwarfed by the near 28% weekly return on the Meme CTI, because these often humorous crypto tokens are ideally suited to benefit from a surge in investor risk appetite. With double-digit weekly gains the more established Meme coins like Dogecoin, Shiba Inu and Pepe, which are constituents of our Meme CTI, performed much better than tradfi assets (S&P500 was flat last week while Gold, which just hit a new all-time highs, was only up 1%). However, the star performer across the entire crypto meme sector last week was a Solana-based token inspired by a baby pygmy hippo called Moo Deng (not something I had on my 2024 crypto bingo card) that launched earlier in the month. It’s price surged over 1,300% last week and helped one crypto degen turn a $1,300 punt into a holding worth over $12M in barely more than a fortnight!

Finally, like the prior week, the breadth of the crypto rally was such that none of the Trakx CTIs were in negative territory, with the low volatility defensive Inflation Hedge and Bitcoin Control 15 CTIs both recording weekly gains in excess of 1% despite being at the bottom of the performance stack.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Exclusive: China to issue $284 billion of sovereign debt this year to help revive economy: Reuters
• Moo Deng Price Nearly Doubles in a Day as Meme Coins Outpace Bitcoin Gains: Decrypt
• SEC chair Gensler reaffirms Bitcoin’s commodity status, criticizes industry’s disregard of rules: Cryptoslate
• No, FTX distribution payments do not begin on Sept. 30: Cointelegraph
• Binance Founder Changpeng ‘CZ’ Zhao Is a Free Man: CoinDesk
• Ethena Labs jumps 14% on BlackRock’s BUIDL backed UStb stablecoin announcement: Cryptoslate

Trakx News

• The public sale of $TRKX will start this week. It is being offered on several major launchpads, beginning with @daomaker’s tomorrow. Be sure to get some and unlock the full benefits of the Trakx platform.
• Ryan Shea’s September Crypto Monthly Update will be published this week entitled “Good Vibrations” watch out for it.

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.