House View – May 2024

In the May edition of the Crypto Finance House View, we cover the following topics:

Market Review & Outlook

Crypto assets exhibited volatility in early April but maintained their position as one of the best performing assets year-to-date. There is an increasing focus on the fundamental value drivers of various chains and protocols, with the expectation that projects will need to deliver tangible results or face declines in their token value. Looking ahead, the crypto market’s sensitivity to changes in US interest rates suggests potential volatility, but there remains a strong belief that crypto will lead a rally following rate uncertainty, so we recommend that investors view short-term corrections as buying opportunities.

By Friedrich Herzog

Technical Analysis

BTC/USD has been trading sideways, unable to exceed the previous (all-time) high. However, the support area around USD 60,000 was successfully defended, although intraday lows were printed slightly below this level. Overall, we are sticking to our scenario: we were expecting a wedge as a continuation pattern, but what we have so far is a rectangle, a sideways consolidation pattern that is seen as a break before prices move higher. The major support area around USD 60,000 must hold for this scenario to remain valid – and we also maintain our USD 80,000 target as our medium-term scenario. The long-term RSI model has confirmed its long position. The RSI readings currently stand at 71.4, well above the trigger level of 53. The relative strength of ETH vs. BTC has continued to trend in favour of BTC, and has traded below the old major support area.

By Michael Zbinden

Innovation & Performance: First Anniversary of our Crypto Indices

As crypto emerges as a new asset class, there is a demand for better designed and smart investment solutions. Investors are looking to allocate to crypto beyond bitcoin, and the asset class offers many smart beta and factor opportunities. With this in mind, we have developed innovative crypto indices with dynamic and smart multi-coin allocation mechanisms that go beyond simple market cap and single coin products. The allocated strategies are based on research, factor analysis, and on-chain data. The two strategies have been trading live, and have been available to investors for a year now. The performance – both absolute and relative – validates our approach.

By the Crypto Finance Asset Management Team

Crypto Reads: “The Everything Token: How NFTs and Web3 Will Transform the Way We Buy, Sell, and Create” – Steve Kaczynski and Scott Duke Kominers

In “The Everything Token: How NFTs and Web3 Will Transform the Way We Buy, Sell, and Create”, Steve Kaczynski and Scott Duke Kominers, a Harvard Business School professor and a16z crypto research partner, along with a career marketer and Web3 entrepreneur, delve into the impending digital revolution driven by NFTs. They make the case that NFTs are not just an Internet image or a passing fad, but a disruptive technology that facilitates the creation of digital assets and unambiguous proof of ownership.

By Crypto Finance Editorial Team

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All information in this document is provided for general information purposes only and with no warranty or liability for accuracy, completeness, or fitness for a particular purpose. No information provided in this document constitutes or is intended as investment advice. This document is not, and is not intended as, an offer, recommendation, or solicitation to invest in financial instruments including crypto assets. Crypto Finance is a financial group supervised by the Swiss Financial Market Supervisory Authority FINMA on a consolidated basis with Crypto Finance AG as a securities firm and Crypto Finance (Asset Management) AG as an asset manager for collective investments with the corresponding FINMA licenses. This document and its content including any brand names, logos, designs, and trademarks, and all related rights, are the property of the Crypto Finance Group and Deutsche Börse Group. They may not be reproduced or reused without their prior consent.

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