Feb 23
Week 8, 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
Nvidia's recent earnings release was met with high anticipation across the market, akin to the tension before pivotal inflation data announcements. The stakes were particularly high, as a performance that failed to surpass expectations could have led to negative repercussions across the board. This sentiment was underpinned by Nvidia's significant role in driving the S&P 500's rally this year, contributing to about a quarter of the index's gains. The company's financial results not only exceeded Wall Street's forecasts but also showcased its dominance in the rapidly evolving artificial intelligence sector. Nvidia's success has become a barometer for market sentiment, making this earnings report a crucial moment for investors and analysts alike, who were on edge, understanding that the outcome could sway the market's direction.
Moreover, Nvidia's remarkable performance and strategic positioning have been pivotal in fueling the surge in both the cryptocurrency and artificial intelligence (AI) sectors. As a leading supplier of high-performance computing chips, Nvidia has found itself at the heart of the AI revolution, with its technology being indispensable for powering sophisticated AI models and applications. This demand has been further amplified by the rapid adoption of AI technologies by major tech giants and various industries seeking to leverage AI for innovation and efficiency.This dual influence of Nvidia on both the AI and crypto markets underscores the company's significant impact on technological advancement and market trends. As Nvidia continues to lead in providing essential hardware for AI development and cryptocurrency mining, its financial successes and strategic moves are closely watched by investors and industry observers, highlighting its role in driving the momentum in these cutting-edge sectors.
Bitcoin
Following a record week of inflows into crypto investment products, US spot bitcoin ETFs, notably those offered by VanEck, WisdomTree, and Bitwise, experienced unprecedented trading volumes. Matt Hougan, Bitwise's Chief Investment Officer, highlighted the remarkable demand for these ETFs, noting the trading of a record 6.3 million shares, worth approximately $179 million, of the Bitwise Bitcoin ETF on a single Tuesday. This surge in interest was not isolated to Bitwise alone, as VanEck and WisdomTree also saw significant spikes in their trading volumes post-holiday weekend, with VanEck's Bitcoin Trust ETF reaching 6.8 million shares or $400 million in trading volume, and WisdomTree's Bitcoin Fund hitting over 4 million shares or about $220 million in volume.
These volumes represent a dramatic increase from their initial days on the market, indicating a growing investor appetite for bitcoin and crypto investment vehicles. The overall trading volumes for US spot bitcoin ETFs (excluding the Grayscale Bitcoin Trust) hit around $2 billion, marking a significant milestone since their market debut. This heightened activity aligns with a record $2.45 billion inflow into crypto investment products in the preceding week, showcasing a robust and escalating interest in the crypto space.
The spotlight was also on the BlackRock and Fidelity issued bitcoin ETFs, which led the inflow surge, further underscoring the momentum behind bitcoin investments. With the industry on track to surpass initial inflow estimates significantly, the recent spikes in trading volumes and inflows reflect a burgeoning confidence and a potential second wind in the crypto ETF market, signaling a strong, ongoing interest from both retail and professional investors in the burgeoning bitcoin and broader cryptocurrency investment landscape.
Top Gainers and Losers
As a top performer this week: Jasmy with over a 103.6% gain. Jasmy Coin is a Jasmy Coin is an ERC-20 token and a utility token of the Jasmy project and known as the Japanese Bitcoin.
The worst performing asset this week is DogwifHat, the top memecoin of Solana, but the Modularity sector seems to be falling quite a bit. Could be an opportunity to buy
Global Market cap
The total market capitalization of the cryptocurrency ecosystem grew this week, from $2 trillion to $2.05 trillion in the past 7 days.
Stablecoin Flows
The total market capitalization of stablecoins has remains around its level at $135 billion.
Flagship Portfolio Vault Performance
Over the past 7 days, the share price of the Portfolio Vault went from $48.78 to $50.55, which is a 3.62% increase.
We have decided to remain 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 not rebalance. 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.
