Trakx Weekly Update: May 15, 2023

Key Crypto Market Figures

CTIs Weekly Performance

Crypto prices remained in consolidation mode over the past week, with the Trakx Top 10 Crypto CTI down 5% on the week. For a second successive week it was the Trakx Inflation Hedge CTI that recorded the best performance, declining by less than 1%, while the Diversifier and NFT Metaverse indices witnessed the weakest performance, off by 11% and 10% respectively.

The ongoing choppy behaviour of crypto is very much a reflection of considerable uncertainty about the macro environment, which is also impacting tradfi asset markets leaving them largely directionless. The greatest near-term source of uncertainty relates to the US debt ceiling stand off. However, the more substantive risk relates to Fed interest rate policy. Investors continue to anticipate a swift return to Fed easing amid increasing concern that the regional banking crisis is curtailing credit – potentially a harbinger of a hard-landing/recession. Yet, as last week’s US CPI report illustrated, inflation remains well-above target making it very difficult for the Fed to justify trimming borrowing costs. We plan to publish on this topic later this week, so stay tuned.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• OpenAI CEO Nears $100M Funding for Worldcoin Crypto: Cryptotimes
• Microsoft, Goldman Sachs, and Other Big Firms Back Launch of Financial Blockchain: Decrypt
• Among Bitcoin Developers, Debate Is Raging Over Whether to Censor Ordinals BRC-20s: Coindesk
• Zimbabwe sells millions of gold-backed crypto tokens despite IMF warning: Cointelegraph
• Binance Announces Exit from Canada, Citing Regulatory Tensions: Coindesk

Trakx News

• Ryan Shea crypto economist at Trakx was quoted in the article “Bitcoin pops as US inflation comes in below estimates” in The Block

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.