December 20th, 2023
Quick Takeaways:
- FOMC Meeting Impact: Modest surge in risk assets, but divergence in crypto market behaviour.
- Inflation Concerns: Expected resurgence of inflation and ongoing economic challenges.
- Strong Performance for Berkshire and Duroc investment strategies.
- VanEck’s Predictions for 2024: High potential for Bitcoin, emergence of spot Bitcoin ETFs, Ethereum’s strong performance, and competition among centralised exchanges.
- Platform Updates: New coin options and a beta process for crypto payments.
The Financial Market
The December meeting of the Federal Open Market Committee (FOMC) in 2023 marked a pivotal turn in the U.S. financial landscape. A subtle but significant shift in monetary policy led to a noticeable surge in risk assets.
Central to this narrative is the ongoing battle against inflation. Despite a recent slowdown in price growth, economic analyses predict a possible rebound in inflation to around 3.5% by year-end, extending into 2024. This presents a complex challenge for the Federal Reserve, which is tasked with balancing inflation control and maintaining low unemployment levels.
Adding to the complexity, the global economic environment faces additional pressure from rising oil prices, spurred by geopolitical tensions in the Red Sea region, poses risks to global supply chains.
The Crypto Market
MicroStrategy’s Investment: MicroStrategy acquired an additional $600 million in BTC, totaling 174,530 BTC.
FTX’s Asset Sale: The bankruptcy saga of FTX progressed with a court-approved sale of nearly $800 million in Grayscale Trust Assets.
Bitcoin’s Volatility: Bitcoin experienced a significant surge above $44,000, followed by a sharp decline, highlighting the market’s volatility.
Diamond Pigs Strategies
As highlighted in our previous newsletter, there’s a notable shift in momentum within the crypto space, moving from Bitcoin to Altcoins. Key sectors such as Ethereum L1 alternatives (including Solana and Avalanche), Decentralised exchanges (like ThorChain, Injective, WOO Network), and Layer 2 solutions (Immutable) are currently outperforming others. Reflecting these market trends, our Duroc and Berkshire strategies have achieved a remarkable 20% growth over the past 30 days. To stay in tune with the evolving market sentiment, our team has recently restructured the Crypto Mix strategies (Duroc and Pennywell). We have carefully selected 10 high-performing coins, each backed by reliable, AI-powered bots, to ensure robust long and short-term performance for both strategies.
VanEck 2024 Prediction: Forecasting the Future
VanEck, a prominent player in the asset management industry, has revealed their predictions for the cryptocurrency landscape in 2024. Here are some of their most notable forecasts:
–Bitcoin’s Potential: VanEck predicts a significant rise in Bitcoin’s value by late 2024, influenced by the US recession and regulatory changes post the US presidential election.
–Spot Bitcoin ETFs: The approval of the first spot Bitcoin ETFs is anticipated in early 2024.
Ethereum and Its Rivals: Ethereum may outperform major tech stocks, facing competition from platforms like Solana.
–The Shifting Sands of Centralised Exchanges: Binance, currently leading the pack, might find its position contested by emerging players like Coinbase, OKX, Bybit, and Bitget.
What’s New on the Platform?
We’re adding two new coins, Vitalik (ETH) and Anatoly (SOL), alongside Satoshi (BTC) and a stable coin (USDT or EUR). Both coins will be available in the strategy screen at the end of this week.
Payment in Crypto. We are excited to announce the launch of our beta process for cryptocurrency invoice payments, now offering options for both Bitcoin and Litecoin. To make this new feature as user-friendly and effective as possible, we need your input. Please take a moment — just 3 minutes — to participate in our poll. Your participation will help us tailor our cryptocurrency payment options to perfectly fit your preferences and requirements.
Season’s Greetings
We are optimistic that 2024 will be a remarkable year for the world of cryptocurrency. With this in mind, we want to express our sincere gratitude for the trust you’ve placed in us. As we approach this festive season, we extend our warmest wishes to you and your loved ones for a Merry Christmas and a Happy New Year!