October 18th, 2023
In this blog post we recap significant global market events, updates in the cryptocurrency landscape, and the latest news from Diamond Pigs.
Quick Takes
-U.S job market shows resilience amidst rising interest rates.
-Larry Fink, Blackrock CEO advocates for Crypto in recent Interview.
-Bitcoin market dominance surges to a level not seen since April 2021.
-Bitcoin-only strategy “Hereford” minimises losses, outperforming Bitcoin and broader crypto market.
-New exchange partner, WhiteBIT.
-Exciting new section “Crypto Signals” under development, offering customized trading advice.
The Financial Market
In a changing financial world, Bitcoin didn’t react much to the latest U.S. data showing a 3.7% increase in inflation over the last year, which was just a bit more than expected. Recent troubles in the Middle East are making investors nervous, which could affect riskier investments like cryptocurrencies. At the same time, the U.S. job market is doing well, adding 336,000 jobs in September. This shows the US economy is strong, even though interest rates are still high. At the same time, the bond market is going through a tough period, but there are signs it might start to improve.
The Crypto Market
The SEC’s decision not to appeal its loss in the Grayscale case and rumors of a Bitcoin ETF have created a buzz in the crypto community. Bitcoin’s year-to-date performance tells a mixed story: it’s up 60% but still 60% down from its all-time high. Factors such as looming fiat inflation and the upcoming Bitcoin halving in 2024 offer bullish indicators, while geopolitical risks and regulatory issues raise concerns. On top of it, Larry Fink, BlackRock CEO, said in an interview with Fox yesterday that “We’re hearing from clients around the world about the need for crypto. Yesterday’s rally goes way beyond the ETF rumor, and more people are turning to crypto as a flight to quality.
Strategies
Over the past three months, our Bitcoin-only strategy, named Hereford, registered a minor loss of 0.4%, outperforming Bitcoin, which lost 5.5%. Meanwhile, our actively managed strategies have seen losses ranging from 8.4% to 10.2%. It’s worth noting that the broader cryptocurrency market, excluding Bitcoin, declined by 13% during the same period. Additionally, Bitcoin’s market dominance surged to a level not witnessed since April 2021. Note that all Diamond Pigs strategirs performance figures include an estimated 0.3% trading fee cost for each trade executed.
New Partnership: WhiteBIT
A few weeks ago, we partnered with a new exchange called WhiteBIT. Founded in 2018, WhiteBIT is a centralized cryptocurrency exchange based in Europe. The platform is designed to be user-friendly and offers various trading options such as spot trading, margin trading, and staking. A significant portion of WhiteBIT’s user base hails from Ukraine.
New Section Coming Soon: Crypto Signals
The Diamond Pigs team has recently embarked on the development of a new section, Crypto Signals, based on recent customer feedback. This feature aims to diversify the services we offer on the platform, adding a dual-strategy approach. Alongside our existing fully managed portfolios and ‘Exclude Your Coin’ feature, users will soon have the option to choose Crypto Signals. These signals offer targeted trading advice, such as the best times to buy or sell specific cryptocurrencies. We will share more details about this new innovation as we approach its official launch date.