Hello everyone,

The aim of this letter is to inform you about the current situation of the crypto-asset market, but also about recent news in this field. This letter is not an investment advice, but only a sharing of my personal point of view.

News

Gold and Bitcoin: strong allies in the face of economic uncertainty? In recent months, the US economy has been a source of growing concern, with the risk of bank failures, debt defaults and de-dollarization potentially affecting the dollar's status as the world's reserve currency. Against this backdrop, can assets such as gold and Bitcoin take on the role of safe havens and offer effective protection?

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«Bitcoin is digital gold» says BlackRock CEO. In an interview with Fox Business about filing for a Bitcoin spot ETF, Larry Fink affirmed his desire to «democratize cryptocurrencies». Although highly critical of the asset class in 2017, the CEO of asset manager BlackRock now calls Bitcoin «digital gold».

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Cryptocurrency survey: 88 % of institutional investors are optimistic. In a survey conducted by Binance Research, we learn that 88 % of institutional investors surveyed say they are confident about the cryptocurrency ecosystem over the next decade. What else stands out in this study?

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Aave: GHO decentralized stablecoin lands on the Ethereum (ETH) mainnet Decentralized finance protocol Aave has taken another major step forward by officially rolling out its decentralized stablecoin GHO, following a massive vote of support from its community. As of now, users can mint GHO by depositing cryptocurrencies as collateral on Aave.

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Cryptocurrency survey: 88 % of institutional investors are optimistic. In a survey conducted by Binance Research, we learn that 88 % of institutional investors surveyed say they are confident about the cryptocurrency ecosystem over the next decade. What else stands out in this study?

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Ethereum (ETH): Linea, ConsenSys' layer 2, launches its zkEVM mainnet. This layer 2 Ethereum (ETH), based on zk Rollups technology and compatible with the Ethereum Virtual Machine (EVM), will roll out its mainnet to the general public from next week. Developers can already start implementing their applications on the network.

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Ethereum: the famous luncheon voucher tokenized via arbitrum? Cryptocurrency blockchain networks enable a multitude of innovations. Practical use cases are multiplying all the more. French group Edenred, for example, plans to digitize its Ticket Restaurant, a popular meal voucher, in token form. The first tests are taking place on Arbitrum (ARB), the layer 2 solution of the Ethereum network (ETH).

Fundamental Analysis

The Bitcoin price at the time of writing is 30,000$ (07/19/23).

Digital assets are uncorrelated with other asset classes and interest rates:

Throughout their existence, digital assets have on average been decorrelated from interest rates, and therefore decorrelated from other asset classes closely linked to rates, such as equities, bonds and real estate.

There has indeed been a period of high correlation over the last two years, mainly due to the large amount of money «printed» by our central banks. This mass of liquidity was mainly sent to the bond market, then trickled down to other asset classes (equities, real estate, gold, etc.).

Bitcoin's correlation with the S&P 500 has returned below 0.1 as we can see on the graph below:

Indeed, if we take a step back, the outperformance of Bitcoin and Ethereum since January 1, 2020 compared to other asset classes is overwhelming:

Recovery rhythms :

During every bear market, there are major capital outflows. We can see these capital outflows on the graph below. We can see the capitalization achieved with the percentage of its decline.

It's important to note that there is a capital «recovery» period after every bear market. These periods have lasted between 95 and 239 days in previous cycles. We are currently in the average recovery interval (188 days). We believe, however, that the pace of recovery in this cycle will be slightly longer, in the range of 200 to 300 days.

We can break down the «pain» of realized losses for short- and long-term investors in previous cycles in the chart below. We can see that this latest cycle was particularly deep and painful, with 90% of losses for short-term holders (STH). However, as with all other cycles, the recovery period is underway. This chart also highlights the fact that, once again, long-term holdings should be favored over short-term ones.

We have become PSAN (Prestataire of Services on Digital Assets) !

We are delighted to announce that we are officially registered as a Service Provider for Digital Assets (PSAN) with the Autorité des marchés financiers (AMF) - under number E2023-084.

It's the culmination of more than a year's work with the regulator. It is also the continuation of a great adventure with Cedric Teissier and Jocelyn LEON-DUFOUR in the development of our solution for managing a portfolio of digital assets under mandate, with customized human support.

With our A to Z management service, you won't have to worry about lack of time or experience, and can diversify your assets with confidence.

Our service

We offer a portfolio management service specializing in digital assets. We provide complete human support from A to Z in this universe, adapting the allocation of your portfolio to your risk profile and situation.

Our turnkey management allows you to profit from the evolution of this sector without worrying about which digital assets to put in your portfolio, nor about in-depth token research, volatility, arbitrages, etc... All you have to do is read your monthly reports and invest regularly with a long-term horizon (4 years and more).

We don't do algorithmic trading or daily trading, we invest for the long term in projects we know and understand. We make monthly arbitrages in the portfolios and study in depth the assets (especially their tokenomics) that we put in the portfolio.

Discover our website: https://crypto-assets-management.com/

If you have any questions or comments, or if you would like to find out more about our service, please do not hesitate to contact us at this e-mail address: tristan.g@crypto-assets-management.com or make a telephone appointment with us via this link.

We are registered registered with the AMF for the business of buying/selling digital assets for legal tender and exchanging digital assets for other digital assets under number : E2023-084.

- Warning -

This is not investment advice. No one can predict the future.

You alone are responsible for your investment decisions.

We are not liable for any loss resulting from a decision taken on the basis of information provided by a third party. in this letter.