Feb 17
Week 7, 2024 - Weekly Market Outlook
The weekly market outlook article provides a brief analysis of the past week's market performance and an outlook for the upcoming week.
Introduction
In this weekly market outlook, we examine the most recent updates in the cryptocurrency ecosystem. With an emphasis on Bitcoin and the macro environment, we analyze recent price action. We evaluate the global cryptocurency market cap, DeFi stablecoin flow and do a short review of the crypto market's biggest gainers and losers. Finally, we evaluate the performance of the Flagship Portfolio Vault.
Macro
In a recent update, it was reported that weekly jobless claims in the U.S. saw a decrease, falling by 8,000 to a seasonally adjusted 212,000 for the week ended February 10. This decline in jobless claims indicates a resilient labor market, where companies are hesitant to lay off workers, especially after facing challenges in filling job vacancies during and after the COVID-19 pandemic. This would indicate that the federal reserve doesnt need to cut rates Despite this negative market news, there's an interesting lack of response from both equity and cryptocurrency markets.
Typically, such labor market strengths might be expected to influence investor sentiment positively, reflecting confidence in economic stability and consumer spending power. However, the current situation suggests that other factors are at play in the financial markets, overshadowing the impact of the labor market's performance. These could range from macroeconomic concerns, such as inflation rates and monetary policy adjustments, to sector-specific issues affecting investor outlook. The disconnection between a strong labor market indicator and the muted reaction in equity and crypto markets underscores the complex interplay of variables that drive market dynamics.
Bitcoin
The recent surge in Bitcoin ETF inflows is nothing short of remarkable, marking a significant milestone in the cryptocurrency investment landscape. Over just the past four days, Bitcoin ETFs have seen an influx of $2.3 billion, a figure that surpasses the total inflows recorded in the first four weeks of trading. This influx amounts to 43,300 Bitcoin, demonstrating a growing confidence and interest from investors in the cryptocurrency market.
This notable increase in investment has coincided with a bullish trend in Bitcoin's price, which recently soared past the $52,000 mark. The rapid accumulation of assets under management (AUM) in several Bitcoin ETFs underscores the increasing mainstream acceptance of Bitcoin as an investment asset. Notably, four spot Bitcoin ETFs have now joined the "billionaire club," with Bitwise's Bitcoin ETF being the latest to achieve this milestone, highlighting the fund's success among its peers.
The significant inflows into Bitcoin ETFs, particularly in such a condensed timeframe, reflect a broader market optimism. The achievement of BlackRock’s iShares Bitcoin Trust, which became the first Bitcoin ETF to surpass $5 billion in AUM, holding over 105,280 BTC, exemplifies the scale of investor enthusiasm and the potential impact of institutional investment on the cryptocurrency market.
The correlation between the influx of capital into Bitcoin ETFs and the upward movement in Bitcoin's price suggests that the increased investment vehicle options are likely contributing to Bitcoin's price momentum. As Bitcoin continues to break through key price thresholds, the role of Bitcoin ETFs in providing a more accessible and regulated way for investors to gain exposure to Bitcoin cannot be understated. This trend not only highlights the growing confidence among investors but also points to a maturing market that is increasingly integrating with traditional financial systems.
Top Gainers and Losers
As a top performer this week: GXCHain with over a 1024.6% gain. GXChain is a blockchain platform for the global data economy, designed to build a trusted data internet of value.
The worst performing asset this week is Huobi, the token for the centralized exchange Huobi
Global Market cap
The total market capitalization of the cryptocurrency ecosystem grew this week, from $1.81 trillion to $2 trillion in the past 7 days.
Stablecoin Flows
The total market capitalization of stablecoins has remains around its level at $130 billion.
Flagship Portfolio Vault Performance
Over the past 7 days, the share price of the Portfolio Vault went from $43.78 to $48.88, which is a 11.65% increase.
We have decided to flip ultra bitcoin bullish 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 maintain our current portfolio assets and add to our current winners. Therefore, our risk profile can be classified as ultra bullish.
If you’d like to access Flagship’s portfolio Vault, click here.
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.
