Cryptochain Capital is a cryptocurrency fund based in Australia who have capital deployed across global cryptocurrency funds. Crypto prices continued their pullback in June with the overall market cap reducing by 22% to USD257 Billion. The crypto hedge funds that we have capital deployed across, declined by 12% during the month of June. This is 2% better than Bitcoin performed during the same period which follows the trend of our fund outperforming the Bitcoin benchmark.
We do have the opinion that a market cap around the USD250 Billion is a firm low base in the market as this level has been tested now 3 times over the past 6 months. Bitcoin at a price of USD5,700 to USD6,000 has also been tested numerous times over the same period which also indicates solid resistance at these prices. Our belief that this price and point in the market represents an excellent buying opportunity across the crypto market. The graph below highlights similarities to S&P 500 to the year 1999 where there was a similar decline, consolidation and then eventual increase.
Bitcoin its market dominance increased again back to 40%, the first time in two months it has reached this level.
Note: – 12% is an unofficial gross return as we are waiting for the audited returns from the various cryptocurrency hedge funds we deploy capital across.
Despite the downward move in prices, June was a somewhat positive month for the overall crypto market. Some significant announcements include the launch of a new VC fund, continual institutional deployment of capital and importantly announces from the SEC around pro-cryptocurrency.
The SEC’s new view on Ether and other cryptocurrencies that they are not actually a security. By stating this the SEC has given the green light to many cryptos now legally to be traded on US based crypto exchnages.
Some key events and information throughout the month of June include:
- CFTC Commissioner states we are witnessing a ‘Modern Miracle’
- Coinrail is Hacked for $50 million of Crypto
- CFTC Subpoenas Leading Exchanges for Trading Data
- Binance to create a Bank Account in Malta
- Coinbase to purchase a Securities Dealer
- Fidelity Investments is creating a Crypto Exchange
- Japan’s SBI Launches Crypto Exchange
- Largest ICO ever EOS – Launches
- JD.com’s to launch as Asset-Backed Securities on the Blockchain: https://www.coindesk.com/jd-coms-finance-arm-to-issue-asset-backed-securities-on-a-blockchain/
- New crypto Exchange BITBOX launched by LINE
- Binance launches Crypto-Fiat Exchange in Africa
- Crypto Charity Fund launched by Coinbase Aims to Raise $1 Billion
- Facebook Reverses Cryptocurrency Ad Ban
- Major European Regulators work on blockchain based Warrant-Issuance System
- Walmart-Led Blockchain for transparency of fresh produce
We still have a very bullish outlook in relation to the crypto asset class and see the current bearish conditions as a stable bottom to the market that will see consolidation over the medium term before prices begin on an upwards trajectory.