In this month's update, we explore the latest developments in the macroeconomic landscape, examine the ongoing recovery and uncertainty in the crypto market, review the performance of our core strategies amidst recent volatility, and share exciting updates from the Diamond Pigs ecosystem, including the launch of our new AI-powered strategy matching tool.
Key Highlights:
- Fed Cuts Rates: Federal Reserve slashes rates by 50 basis points, with potential further cuts by year-end.
- Bitcoin Recovery: Bitcoin climbs to $63,500, dominating 58.5% of the crypto market.
- Mixed Sentiment: Experts remain cautious about long-term effects of rate cuts.
- AI-Powered Tool Launched: Our new strategy matching tool is live to help users align strategies with their goals.
1. Macro Economics: Latest Developments
The Federal Reserve recently implemented a 50 basis point rate cut, sparking significant investor discussion. This decision is part of a broader strategy, with expectations for further rate reductions by year-end. The market is closely watching to see how the Fed’s decisions will shape liquidity and risk-on assets like cryptocurrencies moving forward.
2. The State of Crypto: Market Recovery and Uncertainty
Recently, altcoins appear to have hit a temporary bottom following the sharp market drop on September 6. Both stock and crypto markets have since rebounded, with Bitcoin climbing from $53,000 to $63,500, gaining a dominance of over 58%. While the recent 0.5% rate cut by the Federal Reserve has sparked some optimism, concerns about inflation and broader global economic challenges continue to temper overall market sentiment. Experts such as Chris Aruliah from ByBit and Arthur Hayes of Maelstrom caution that while the rate cut might trigger a short-term rally, deeper structural issues within the financial system could lead to increased volatility. As a result, although increased liquidity may support crypto prices in the near term, the sustainability of this recovery remains uncertain as broader market forces continue to evolve.
3. Our Strategies: Performance Overview
The past 90 days have been volatile for Diamond Pigs strategies, particularly following the early August market correction, which impacted many strategies focused on altcoins and higher-risk assets. Despite these challenges, diversification has allowed some strategies to remain resilient:
- Hereford Strategy: As a Bitcoin Protection strategy, Hereford continues to lead with a +12.7% return. Its focus on Bitcoin has helped it weather the volatility better than other strategies exposed to a broader mix of coins.
- Berkshire and Duroc Strategies: Both strategies, which are exposed to assets beyond Bitcoin, have seen a decline of -7% over the last three months. These strategies were more affected by altcoin underperformance during this period.
- Gascon Strategy: Gascon performed well until early August but ended with a -11% decline. This was primarily due to a poorly timed Ethereum long position after its initial crash, which continued to drop another 15%. However, Gascon has started to regain momentum as market conditions have begun stabilizing in recent weeks.
Last 90 days Diamond Pigs's Strategies' Performance
4. What’s New
As we enter the next quarter, we’ll continue to monitor how these strategies adjust to evolving market conditions. To ensure your investments are aligned with your risk profile and long-term goals, we recommend using our newly launched AI-powered strategy matching tool. This tool simplifies the process by guiding users through a few quick questions to help identify the strategy best suited to their financial objectives. Explore the tool here.
Additionally, don’t miss our latest blog post on the Top 5 Golden Rules of Diamond Pigs investing. These rules provide valuable insights on how to optimize your experience and make the most of our platform.
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.
