Blockchain Index

Blockchain Index Strategy Performance: Update on December 4th

$BTC concluded November with its best monthly close in 19 months, tapping $38,000 in price strength. The bears' attempt to trigger a sell-off at the monthly close failed, and $BTC started the new month approaching the upper range. The monthly close stands just above $37,700, showcasing bid liquidity and avoiding a last-minute sell-off, according to order book data from Material Indicators. Major resistance on monthly timeframes is now identified at $47,000 and around the 2021 all-time high of $69,000, indicating positive momentum. Over the weekend we saw $BTC reaching $42,000.

$ETH topped $2,000 Amidst Positive Market Developments for the first time since April. This price surge is fueled by BlackRock's initial steps toward filing for a spot ether ETF. The registration of an iShares Ethereum Trust adds to the positive sentiment, mirroring the previous filing for a $BTC ETF by BlackRock. While Bitcoin experiences a pullback from $38,400, the overall market is buoyed by the prospect of ETF approvals, contributing to short liquidations and crypto prices rising.

When it comes to our structure, we rebalanced Blockchain Index on Friday. $IMX was listed on Iconomi, and it falls under our index parameters. We added it with a position of 0.35%. 

$MKR , $AAVE and $INJ fell out of our parameters, and have been removed from the structure. 

The rest of our structure stays the same with minor adjustments to weights. $BTC and $ETH positions remain the same at 40$ and 30% respectively. The biggest weight rebalance is $BNB with a -0.42% change. Its current weight is 6.93%

Over the weekend, we saw good increases all across the board. We will keep our current structure and rebalance at the start of the next year, keeping true to our schedule and structure.

Bitcoin is currently leading the market higher, which is no surprise. During the early phase of the bull market, BTC will dominate as most liquidity rotates into the largest digital asset. 

ETH is yet to reach the previous resistance level of roughly 2145 USD, and has some catching up todo. However, the new high on Bitcoin of 31,420, marks the highest price BTC has been to since June 2022. Everything is moving in the correct direction. 

This week, Bitcoin exploded to the 31K USD resistance level and has reached a double top zone. 

There were multiple news stories of institutions piling into the cryptocurrency market, despite the ongoing legal battles between the SEC, Binance and CoinSpot. The largest fund on the planet (BlackRock) applied for Bitcoin Spot ETF in recent weeks. We also know that BlackRock has been increasing its exposure to Bitcoin indirectly, through MicroStrategy (MSTR), the largest corporate holder of Bitcoin.

BlackRock is one of MicroStrategy's top five shareholders, with a reported 8.1% stake, a 25% increase from 2022. MSTR is the largest institutional Bitcoin holder, with 140K BTC valued at more than $3 billion. If any asset manager can successfully push through a Bitcoin ETF, it will be the largest asset manager in the world. 

Additionally, in Europe, Deutsche Bank applied to Germany's financial services authority to provide cryptocurrency custody services. Deutsche Bank wants to expand its digital assets and custody business. Deutsche's appeal to BaFin is part of a larger drive to increase fee revenue for its business bank unit. With a BaFin licence, crypto businesses can confidently promote and sell their services in the German market.

It appears as though institutions are turning bullish on digital assets!

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Blockchain Index - Bitcoin Update: 16th May 2023

Bitcoin increased by roughly 100% from its market low of 15,500 USD, reaching highs of almost 31,000 USD.