Trakx Weekly Update: August 21, 2023
Key Crypto Market Figures
CTIs Weekly Performance
The cryptocurrency prices experienced a decline last week, impacting our flagship CTI, the Trakx Top 10 Crypto CTI, which saw an 11% decrease. Despite this, it still maintains a favourable year-to-date performance of 27%. All of Trakx’s CTIs recorded negative performance during this period. The poorest performers were the Top 10 DeFi and Top 10 NFT Metaverse indices, both experiencing a decline of 15%. Within the DeFi sector, SushiSwap, Curve DAO Token, and Chainlink were the coins that experienced the most significant drops in value. In contrast, the Trakx Digital Inflation Hedge CTI performed the best, with only a 3% decrease, effectively fulfilling its role of providing protection against high volatility.
In the past week, both Bitcoin and the wider cryptocurrency market experienced a downturn, prompted by the Federal Reserve’s indication of forthcoming rate hikes on Thursday. This sudden shift in the market was additionally catalyzed by a Wall Street Journal article that reexamined SpaceX’s bitcoin write-downs in both 2021 and 2022. The article suggested that SpaceX, led by CEO Elon Musk, may have divested its bitcoin holdings, fueling speculation that Tesla might have taken similar actions. Moreover, the lack of a resolution in the closely watched legal case of Grayscale versus the SEC further contributed to the uncertain market atmosphere. And finally Evergrande's default - although predictable - added jitters to the already tight market.
Sources: Trakx, Coingecko, Alphavantage
- Bitcoin and Broader Crypto Market Fall Sharply After Fed Signals More Rate Hikes: YahooFinance
- SpaceX wrote down bitcoin holdings by $373 million: TheBlock
- Bitcoin Plunged 11% in Worst Week Since FTX’s Collapse. What’s Next for BTC’s Price? CoinDesk
- Worst Performing 3 DeFi Tokens This Week: SushiSwap, Curve DAO Token, and Chainlink Are The Coins That Plummeted Most: CoinGape
- Yann Le Floch, Trakx Digital Money Banker, participated in the Paris Dot Comm panel “HOW TO AVOID CHAOS”
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.