Welcome to the Diamond Pigs October Newsletter!
In this month’s update, we analyze the latest macroeconomic factors driving market volatility, review Bitcoin’s ongoing recovery amid geopolitical tensions and US election uncertainty, and provide performance updates for our core strategies. Additionally, we highlight insights from the 2024 State of Crypto Report and introduce our user survey to help us tailor our platform to your needs.
Key Highlights:
- Middle East Tensions: Rising concerns over potential oil infrastructure attacks by Israel could lead to higher inflation and impact global markets.
- Bitcoin Surge: Bitcoin reaches $68,000, with strong ETF inflows sustaining its market dominance to above 58%.
- US Election Impact: Crypto markets remain uncertain as the US election approaches, with potential regulatory changes depending on the winner.
- 2024 State of Crypto Report: A16z's report highlights crypto’s growing relevance and advancements in blockchain technology.
- Strategy Performance: Despite recent market volatility, several Diamond Pigs strategies have shown resilience.
- User Survey: Help us improve! Share your feedback through our short survey to help us better serve your investment goals.
Macro Factors Impacting the Market
Two major factors are driving current market volatility: tensions in the Middle East and the upcoming US election. The conflict between Israel and Iran, particularly after recent missile attacks, has raised concerns about potential retaliations targeting Iran's oil infrastructure, which supplies 4-5% of global oil. Any disruption could spike oil prices, fueling inflation and negatively affecting the global economy, pressuring both stock and crypto markets. While some view Bitcoin as a safe haven during such turmoil, others fear an initial price drop due to panic, with potential recovery depending on further developments.
Meanwhile, the US election adds further uncertainty. A potential Trump victory is seen as favorable for crypto due to possible regulatory easing, while Harris’s regulatory stance remains unclear. Economic data like job reports and corporate earnings are also under scrutiny by the Federal Reserve, influencing decisions on interest rates and market sentiment. Together, these factors are likely to keep the crypto market volatile, with sudden price swings expected in the coming weeks.
2. The State of Crypto: Bitcoin Rallies
Bitcoin has recently surged to a multi-month high of $68,000. This rally is mainly attributed to significant inflows into US-based spot Bitcoin ETFs, which saw their best three-day performance since June, accumulating over $1.18 billion and pushing total AUM to $60 billion. Part of this surge may be tied to a Washington Post report suggesting the Israeli prime minister agreed with the US to avoid targeting Iranian oil refineries or nuclear facilities, easing geopolitical tensions.
Another driver could be Trump’s rising chances of re-election, as polls show him closing the gap with Kamala Harris in one of the closest races in US history. Meanwhile, Ethereum ETFs have struggled with outflows since their July launch, though ETH has still risen by 7% in the past week to over $2,600. The total crypto market cap has increased by $30 billion in the last 24 hours, surpassing $2.4 trillion.
2024 State of Crypto: Key Insights on the Future of Blockchain and Digital Assets
This week, a newly 2024 State of Crypto Report, released by a16z, which underscores crypto’s growing relevance in both technology and politics. The report covers a variety of topics, including the rise of stablecoins as one of crypto’s "killer apps," advancements in blockchain technology that have drastically lowered transaction costs, and how crypto is increasingly intersecting with key tech trends like AI and gaming.
For more details, you can explore the full report here.
3. Our Strategies: Performance Overview
Here's a brief overview of each strategy’s recent performance:
- Hereford Strategy (BTC Only):
Focused on trading between EUR and BTC, with an average of 8-10 trades per year, the Hereford strategy remains a strong performer, posting a 100% gain over the past 12 months and 13% in the last 6 months. Its focus on Bitcoin has helped it weather market volatility effectively.
- Gascon Strategy (BTC, ETH, and SOL):
Gascon trades primarily in BTC and ETH, with SOL added 6 months ago. It faced challenges due to Ethereum’s 65% decline in the past year but still achieved a 47% return over 12 months. However, it experienced a -18% drop in the last 3 months due to poor altcoin market conditions, though stabilization is underway.
- Duroc Strategy (Crypto Mix - Bitvavo):
Duroc, which focuses on altcoins, has struggled recently with a -12% decline in the past 3 months. Despite this, it managed a 52% gain over the last 12 months, showing long-term potential.
- Berkshire Strategy (Top 10 Index):
Tracking the top 10 cryptocurrencies, Berkshire remains stable with a 108% gain over the past 12 months, though it faced a -4% decline in the last 3 months.
- Bisaro Strategy (Meme Coins - Bitvavo):
Launched 6 months ago, Bisaro exclusively holds meme coins, which are highly volatile. The strategy saw a -16% decline over the last 3 months but posted a 27% gain in the last 30 days, demonstrating potential during short-term rallies.
Help Us Improve: Share Your Feedback Through Our User Survey
We invite you to participate in a short survey to help us better understand your needs and improve our platform. Your input will give us valuable insights into your profile, allowing us to provide more personalized services. It only takes a few minutes, and we truly appreciate your feedback. Click here to participate in the survey
As always, you can reach us via Piggy, our AI-chat support bot, by opening a ticket or sending an email to support@diamondpigs.com
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