May 31
Summertime Seasonality- Flagship Vault Update Week 22
Over the past seven days, the Portfolio Vault's share price has increased from $76.62 to $75.42, a 1.51% decrease.
Over the past seven days, the Portfolio Vault's share price has increased from $76.62 to $75.42, a 1.51% decrease. Regarding BTC and ETH, the Flagship portfolio vault outperformed BTC by 1.1% and underperformed ETH by 1.31%.
Portfolio Vault Assets update
Bitcoin
Bitcoin is down 2.61% this week. Inflows into the nine exchange-traded funds (ETFs) tied to Bitcoin have remain stable, with certain everyday this week reaching between $25M and $50M. On May 29, BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission nearly a week after the regulator approved its 19b-4 filing — both need approval for the ETF to start trading.
Regarding technical indicators, Bitcoin has reclaimed the previous range and has now broken its downtrend. BTC needs to keep closing its daily candles above $66.5k to keep holding it daily trend. BTC is now simply chopping and ranging as its summertime; previous summers have all been ranges and chopping for Crypto.
The Open Network
Over the past week, TON has seen an 0.26% decrease. Recently, The Notcoin airdrop has gone live, this airdrop has attracted over 30 million users on Telegram and set up The Open Network-based cryptocurrency wallets.
TON has been on of the strongest alts in the space and one of the strongest alt blockchains. It is now showing some form of weakness and will probably consolidate.
Pendle Finance
Pendle has decreased by 1.29% over the last seven days, continuing its long-term and short-term trends. The Total Value Locked (TVL) has reclaimed $6 billion dollars after the recent ETH ETF announcement. With the ETH ETF, there is a strong demand for Ethereum based tokens. Pendle has shown to be one of the strongest ones.
Pendle has reclaimed its daily trend and is looking to take a shot at ATHs. Pendle had a great run last week, but is now just consolidating and will be looking to take a shot at ATHs if ETH can keep up its strength.
Solana
Solana has decreased by 6.85% in the last seven days. With Solana overtaking Ethereum on DEX volumes, most on-chain participants have flipped over to Solana because of the cheap fees.
The chart for Solana looks good in terms of a high time frame, as it has retraced a large part of its previous move and is looking to build support at the last consolidation phase. Solana has also reclaimed its daily trend. With its recent strength Solana is one of the strongest charts and can make a move for ATHs.
Fetch
Fetch is down 12.07% in the last seven days. It is currently undergoing a merger with SingularityNet and Ocean Protocol. The three AI platforms will complete the token merger on June 13, and FET will be renamed ASI two days before.
Fetch is currently ranging and will continue to range untill some momentum returns to the AI sector or Bitcoin.
Bittensor
Bittensor has been down 17.28% in the last seven days. Bittensor has updated the number of subnets on the Bittensor Network, upping it from 32 to 36.
While Bittensor has been underperforming these last few weeks, from a fundamental perspective, it is one of the strongest projects out there. It captures every sub-AI sector, as all of these can be built on the Bittensor Network. Bittensor has now reclaimed its daily trend, the last time it did this it ran from $300 to $750.
Ondo
Ondo Finance is up 14.75% in the last seven days. Ondo is a DeFi protocol that aims to provide institutional-grade financial products on the blockchain, including tokens backed by U.S. Treasuries. It has been supported by prominent figures in the financial industry, including Larry Fink, the CEO of BlackRock, one of the world's largest asset management firms.
Ondo's technical indicators are also bullish. It's one of the few adults that has been able to hold its daily trend. With the ETH ETF, the tokenization narrative can really catch a bid. With Ondo being the lead RWA narrative and backed by Larry fink. Ondo can be a top performer.
Pyth
Pyth Network is down 11.60% in the last seven days. With new applications being launched daily, more and more are picking Pyth over Chainlink as an Oracle provider. This has caused the gap in market cap to diminish. There is speculation that Pyth Stakers will also receive numerous airdrops.
Pyth had a significant run-up and retraced the move. It is now one of the weakest alts, as there was a billion-dollar unlock. As a project with a low float and high FDV, it completely depends on the next Bitcoin move. If Bitcoin and Solana trade higher, Pyth will follow.
Stacks
Stacks is down 7.87% in the last seven days. The Nakamoto upgrade of Stacks has been delayed once again, as it requires an additional eight weeks of development time.
Stacks is the biggest BTC beta. It is still below the daily trend and consolidating at previous support. If BTC can make a move up and break out of its current range, we can see stacks following as it's the biggest BTC beta.
Indicator list
Forex Markets
The Forex market is a proxy for risk on or off the environment. EUR/USD is looking strong, and the Forex market looks like a neutral/ risk environment. The dollar is looking neutral. It trades above 100 and is testing the 200-day MA, a neutral and potential risk-on scenario.
DeFi Stablecoin TVL.
When the Total Value Locked (TVL) exceeds the market capitalization, it indicates a risk-on environment. Conversely, if the TVL falls below the market cap, it suggests a risk-off scenario where investors are more cautious. Recently, TVL has been trending upward, but is stagnating. Thus indicating a neutral environment.
Relative Strength Index
The relative strength index (RSI) is a momentum indicator that measures the speed and magnitude of an asset's recent price changes. When the RSI is above 50 on either daily or weekly charts, it signals a risk-on environment. Conversely, an RSI below 50 on these timeframes suggests a risk-off atmosphere. BTC has now reclaimed the 50 on the daily level, indicating a risk-on scenario.
Trends
We utilise the 12, 21, and 36 Exponential Moving Averages (EMA), precise tools for market analysis, to determine the daily and weekly trends. A move below these EMAs on the daily chart will indicate a shift towards a risk-off environment, signalling caution among investors. The market shows signs of stagnation but has yet to lose the daily trend, suggesting a steady state without clear indications of a downturn. When the market reclaims its position above these EMAs on the daily timeframe, it will be considered a sign of transitioning into a risk-on environment. We have reclaimed the daily trend, indicating a greater risk to the environment.
Bitcoin Dominance
Bitcoin Dominance (BTC.D) doesn't directly indicate a risk-on or risk-off environment. Still, deciding our allocation strategy between Bitcoin and the rest of our portfolio is crucial. An upward trend in BTC.D suggests an increased allocation towards Bitcoin, while a downward trend signals a shift in preference towards investing more in blockchains and decentralized applications (dApps). Currently, we're on the lookout for an upward move. This could be a significant move up for BTC that will lead to ALTS underperforming.
ETF Inflows
Reviewing ETF inflows helps us understand the money movements of institutional investors. The dynamics of spot Bitcoin ETFs have recently displayed notable volatility in their inflow patterns. This week, inflows have remained relatively stable, with daily inflows ranging between $25M and $50M.
Total Market Caps
When analyzing market cap indicators to gauge the overall sentiment in the crypto market, we consider three different aspects. The first indicator, the total market cap of the cryptocurrency sector, hasn't reached an all-time high but is showing neutral signs.
The second market cap indicator, which excludes Bitcoin, appears weaker than the first and faces resistance. This situation presents a neutral to risk-off sentiment for altcoins while still bullish for Bitcoin, suggesting that Bitcoin might be a safer bet than other cryptocurrencies in the current market condition.
The third indicator excludes Bitcoin and Ethereum from the total market cap, revealing an even more bearish outlook. This hints at a potential increase in bearish sentiment across altcoins, except Bitcoin, which remains relatively bullish.
Liquidity
Global liquidity trends serve as a barometer for market sentiment, with an upward trend being synonymous with a risk-on environment. This suggests investors are more willing to take on risk, buoyed by the availability of capital. Conversely, a downward trend in global liquidity marks a shift towards a risk-off environment, indicating a more cautious approach by investors as capital becomes scarcer.
Equally significant is the trend in US liquidity, which mirrors the global pattern. A rise in US liquidity reflects a risk-on sentiment within the country, indicating investor confidence and a willingness to explore riskier assets. Conversely, a decrease in US liquidity signals a risk-off mood, where there's a tendency to avoid risk, favoring stability and safer investments. Understanding these trends is vital for investors, as it can guide their investment strategies and decisions.
Both global and US liquidity have started to show upward trends, suggesting a more risk-on environment in markets. This indicates that globally and US investors could have a larger risk appetite. But it is summer and can be seen as more of a ranging environment for risk-on assets.
Brent Crude Oil
Brent crude oil prices impact risk assets significantly. When oil prices rise, the cost of goods and transportation increases, leading to higher inflation. This often results in central banks raising interest rates to combat inflation, making borrowing more expensive and reducing investment in risk assets like stocks. Conversely, when oil prices fall, inflation pressures ease, potentially leading to lower interest rates, cheaper borrowing costs, and increased investment in risk assets. We are now seeing that oil is currently trending down.
Risk profile
We have decided to remain ultra-bullish on Bitcoin despite seeing a loss of trends and a more bearish environment. We are still in a bull market and are already completely deployed at better prices. Consequently, we have decided not to rebalance the vault. As such, the new vault allocations are:
Until next week,
Flagship’s Captain team
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
