Ethereum Soars. Weekly Newsletter #009
Over $9B gets invested into crypto funds, while US inflation hits a 40-year high.
As promised in our last newsletter, today I will review the new US inflation numbers alongside other important news from the last seven days.
If you are curious about why inflation matters for decentralized finance, you can read the segment about Crypto and Inflation in our June Report, where we go into more detail.
Now, without further ado, let us move on to this week’s market summary.
In the last seven days, the cryptocurrency market saw a nice uptrend. The top two digital assets, Bitcoin (BTC) and Ethereum (ETH) increased their value by +4.25% and +22.15% respectively.
The global market cap of crypto is officially back at over $1T with DeFi protocols returning +16.23% over the last week as part of the average +8.31% for the whole market.
With the onset of a new bull run, Bitcoin loses about 1% of its dominance, as investors look for more lucrative opportunities in altcoins.
Crypto Funds Rise $9B In a Single Day
On June 12, Lightspeed Venture Partners announced that the firm had closed its most recent funding round, raising over $7 billion across four funds that invest in early- and growth-stage companies, bringing their total capital under management to over $18B.
On the other side of the globe, Shanghai’s government is kicking off a new $1.5B fund for metaverse development, to accelerate the country’s economic growth.
US Inflation Hits 9.1% as Pressure Grows on Federal Reserve
US consumer prices rose more than forecast in June, hitting an annual pace of 9.1%, a fresh 40-year high that opens the door for the Federal Reserve to potentially raise interest rates by a full percentage point this month.
Treasury yields also jumped, with the two-year note yield moving with interest rate expectations, reaching its highest level since late June. It steadied at 3.2%.
The Stablecoin USDC Proves It Has Liquidity
Circle, the payments company behind the USDC stablecoin, has released a full asset breakdown of the reserves backing its growing dollar-pegged token.
Although unaudited, the breakdown reveals the reserve assets for the company’s USD coin (USDC), which included $42.1B in short-term U.S. government bonds and $13.6B in cash.
Unlike Terra, which was not “backed” by safe assets, the Circle’s stablecoin has slightly more money in reserves than the coins in circulation, which regains people’s trust in stablecoins.
- New Russian Law Bans Crypto Payments for Goods and Services
- District Judge Calls Out SEC for Hypocrisy in Ripple Lawsuit
- Celsius Files for Chapter 11 Bankruptcy Protection
- Polygon’s MATIC Soars After Disney Deal As Crypto Moves Higher
- Swiss Post Office Enters Crypto
- Binance Gets Hit With a Dutch Fine
- Crypto Startup Funding Falls by 26% In H1 2022
- U.S. Crypto Exchange Coinbase Wins Regulatory Nod in Italy
Jul 06, 2022June 2022 Report
Investing in bear markets, crypto inflation, and the importance of timing the market in crypto.
One Button performance
Aggregated return of OB Capital vs. BTC and ETH
Ethereum (ETH) made a great return of +25.32% last week, following the news of its upcoming merge later this year.
The OB Capital aggregate returns keep dominating both the top two digital assets at the 180-day mark by +40.13% against BTC and +56.68% against ETH.
Top trading strategy
Last week, we secretly introduced our new AI strategy Explorer to a couple of investors.
The trading bots created under this AI are already leading the rankings by returning +8.13% on their first publicly visible week.
Last month’s leader Horizon keeps performing great and has +6.62% ROI in the last week, followed at third place by Clipper with +2.17%.
Top-performing market pairs
Following the rally of Ethereum, it is no surprise that ETH market pairs are at the top of the list this week. Solana makes a comeback as a top-performing market pair with a nice +12.80% ROI for the Performer v2 strategy in the SOL: USDC pair.
July 18, 2022
- Resolved issue with the AI bots not appearing in the “Archived” section after being archived
July 13, 2022
- Resolved issue with public statistics not updating on a regular basis
July 11, 2022
- Resolved issues with in-app deposits and withdrawals for OBT
- Added improved caching mechanism for bots
It will take time before crypto returns to its glory days of late 2021, but the community is putting amazing effort into solidifying the new foundation — leaving no weak links this time.
To further help the digital evolution, me and the team will represent One Button Capital at the 2022 Blockchain Week in Singapore next week.
Thousands of crypto enthusiasts and industry experts from different spheres of work will also be present, so if you happen to be one of them, make sure to drop us a message on Discord.
Follow my Twitter for updates, and I hope to meet you there.
CEO at One Button Capital
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.