Mar 07
Portfolio Vault Update - Week 9
Over the past 7 days, the share price of the Portfolio Vault went from $50.55 to $59.12, which is a 15.74% increase.
Vault rebalances
In January, U.S. prices saw an uptick, primarily driven by a significant rise in the cost of services such as housing and finance. Despite this increase, the year-on-year inflation rate marked its smallest growth in three years, suggesting a gradual cooling of inflation. This development keeps the possibility of a mid-year interest rate cut by the Federal Reserve on the table. However, consumer spending showed signs of slowing down, affected by reduced spending on goods like motor vehicles, furniture, and other durable household items.
The Commerce Department's report highlighted that the inflation and consumer spending figures met economists' expectations. Yet, the notable rise in service costs, the largest in 12 months, introduces some uncertainty regarding the timing of the Federal Reserve's first rate cut. The increase in service prices, which encompasses sectors such as healthcare, restaurants, and recreation, is particularly significant as these areas are central to the Fed's efforts to combat inflation. Despite the January spike, officials are not in a hurry to reduce borrowing costs.
Over the past 12 months, PCE inflation climbed to 2.4%, the lowest annual increase since February 2021. This trend aligns with the recent consumer and producer price increases, attributed to the year's start. The core PCE price index, which excludes food and energy, saw a 0.4% increase, the most significant monthly rise since the previous February. This was supported by a 0.6% increase in housing and utilities costs and a 1.3% surge in financial services and insurance, likely reflecting higher share prices.
As core inflation rose by 2.8% year-on-year in January, marking the smallest increase since March 2021, the Federal Reserve continues to monitor these measures closely against its 2% inflation target. Achieving monthly inflation rates of around 0.2% is deemed necessary to return inflation to this target. Meanwhile, the stock market responded positively, with most stocks trading higher, the dollar weakening against other major currencies, and U.S. Treasury prices increasing.
Risk profile
We have decided remain ultra bullish Bitcoin as our indicators are flashing an ultra bullish crypto environment. While it's not an alt season environment, we are observing certain altcoins outperforming the market. Consequently, we have decided to rebalance our vault towards some more alt exposure. Therefore, our risk profile can be classified as ultra bullish.
Portfolio Vault Assets update
Bitcoin
This week has seen U.S. Bitcoin ETFs breaking volume records, with a staggering $7.6 billion reported by market close on Wednesday, surpassing previous highs, as per Bloomberg. BlackRock's Bitcoin ETF, trading as IBIT, led with about $3.3 billion of this volume. Notably, IBIT had already surpassed $2.2 billion in volume by 1 pm ET on the same day. Fidelity's ETF, under the ticker FBTC, recorded around $1.4 billion, while Grayscale's ETF, GBTC, saw $1.8 billion in volume. These ETFs, which only began trading in January, have consistently posted high volumes throughout the week. IBIT, for instance, broke its volume records on both Monday and Tuesday, reaching $1.3 billion the day before the record-breaking Wednesday.
The enthusiasm for Bitcoin ETFs comes as Bitcoin's price neared record highs on Wednesday, reaching around $60,000 at the time of reporting. Bitcoin had peaked at $64,000 before dialing back to $61,000, with its all-time high at approximately $69,000. This surge in ETF volumes and Bitcoin's price performance underscores the growing mainstream acceptance and enthusiasm for cryptocurrency investments.
The Open Network
Over the past week, TON has seen a 24.23% increase. Telegram will start sharing advertisement revenue with channel owners starting in March. All payments and withdrawals will be settled on The Open Network (TON).
Pendle Finance
Pendle has increased by 16.17% over the last seven days, continuing both its long-term and short-term trends. The Total Value Locked (TVL) has consolidated after reaching a new all time high this week, but Pendle keeps achieving milestones on a weekly basis.
Solana
Solana has increased by 22.40% in the last seven days, with the chance of it breaking out of its range. With Solana overtaking Ethereum on DEX volumes, it seems that most on chain participants have flipped over to Solana because of the cheap fees. We are now seeing a new wave of innovation with the SPL token standard.
Fetch
Fetch is up 14.55% in the last seven days. Fetch's usecase is somewhat similar to the new release of OpenAI, Custom GPTs. OpenAI saw a surge of new users after the annoucement of this feature, as has temporarily stopped the onboarding of new users because of a network
Bittensor
Bittensor is down 2.10% in the last seven days. The launch of subnets in October was a tremendous success, with subnet slots filling up with exciting projects. Subnets have allowed the creation of a plethora of mechanisms on Bittensor, but the design is not complete. Subnet emissions are currently determined by a group of validators on Subnet 0. This was a good initial way to bootstrap the system, but is not sustainable long term, as it creates centralization around subnet 0.
Celestia
Celestia is down 2.45% in the last 7 days. Celestia is a modular consensus and data network that enables anyone to easily deploy their own blockchain with minimal overhead. Celestia is built on the Cosmos SDK and uses Tendermint as its consensus mechanism. Celestia has a huge hype for airdrop farmers, as every celestia partner is airdroping tokens to Celestia stakers.
Pyth
Pyth Network is up 24.36% in the last 7 days. The core application of Pyth Network lies in providing real-time, accurate financial data to blockchain-based DeFi applications, thereby enhancing their functionality and reliability. With new applications being launched everyday, more and more of these are picking Pyth over Chainlink as an oracle provider. This has caused the gap in market cap to diminish. There is a lot of speculation going around that Pyth Stakers will also be receiving numerous airdrops in the future.
Vault Composition
Due to the recent price action and market circumstances, we have decided rebalance the vault
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.
