Weekly Investor Letter

Apr. 25 — Crypto assets declined 0.6% this week ($1.1 billion), bringing the total market cap to $177.7 billion. The Crescent Crypto Market Index (CCMIX) was down 0.6%, in line with the total market, while BTC gained 4% over the same period.

The fall in intra-market correlations took a breather this week as intra-week volatility returned. The total market’s value ranged from $185.6 billion to $175.6 billion over the last 7 days. Bitcoin continued to trend higher, breaching $5,600 for a brief moment yesterday for the first time since November. BTC currently trades ~$5,440.

Bitcoin vs. CCMIX

April 18th — April 25th, 2019

Crescent Crypto Market Index (CCMIX)

Crescent Crypto Market Index Constituent Performance

April 18th — April 25th, 2019

Summary

  • BTC was out in front this week, gaining 4% as the only constituent with positive returns. Bitcoin broke through some key technical levels, triggering a number of bullish indicators, most notably a “golden cross” chart pattern.
  • XMR found itself among the best performers for a second straight week, though it declined almost 2% from last week.
  • BSV’s struggles continued as it dropped another 12%, bringing its cumulative loss in April to 20%. BCH also fell nearly 9%.
  • EOS was the biggest loser this week, losing nearly 13%.
  • BTC dominance jumped to 54.5% of the total crypto market cap compared to 52% this time last week.

Notable News

Bitcoin Eyes Golden Cross

What Happened? Bitcoin’s standout performance this month accelerated in the last few days. BTC gained ~5% over the past week, breaking $5,600 on multiple exchanges for the first time since mid-November. Its strength this year has put the elusive ‘golden cross’ firmly in BTC’s crosshairs as its 50-day moving average breaks above its 200-day equivalent.

Why Does This Matter? This is the first golden crossover since October 28th, 2015. The technical indicator is renowned as a bullish sign for any asset, but it’s important to remember just how quick downside volatility can strike. There’s only been four instances of a golden cross for BTC since 2012 so our sample size is obviously limited. Three of these instances resulted in sizable declines in BTC over the following 30, 60, and 90-day periods. The most recent occurence in October 2015 is the exception, marking the early stages of bitcoin’s famous run up through late 2017.

Societe Generale Issued The First Covered Bond As A Security Token on Ethereum

What Happened? Societe Generale SFH issued covered bonds worth $112 million on the public Ethereum blockchain. The bonds have been issued as a security token. Covered bonds are debt securities issued by a financial institution and then backed by a separate pool of assets. Rating agency Moody’s and Fitch gave the tokens a AAA rating. Societe Generale was the sole investor and the tokens were not sold outside of the company.

Why Does This Matter? The initiative is part of the bank’s experimentation with blockchain projects. The bank hopes the transaction will help to improve transparency and efficiency of bond issues. According to the announcement, “This live transaction explores a more efficient process for bond issuances. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement.”

Samsung May Launch Its Own Cryptocurrency

What Happened? According to a report by CoinDesk Korea, Samsung is developing a blockchain network and potentially a cryptocurrency token called “Samsung Coin”. It’s important to note that this report cites an unnamed company official familiar with “Samsung’s internal situation.” Details are scarce, and nothing is confirmed, but the blockchain network could either be public or hybrid — a combination of public and private blockchains.

Why Does This Matter? Samsung has already dipped its toes into crypto waters by introducing a cryptocurrency wallet and decentralized apps support on its Galaxy S10 phone, but this is the first time we’ve heard of the company building a blockchain-based network and a cryptocurrency/token of its own. This would add to the credible and established names people are familiar with like Facebook and JPMorgan who are looking to leverage blockchain technology.

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