Professional Investor Report - August 2022
We'll start by addressing the elephant in the room; The current bitcoin drawdown has lasted 294 days. We are currently down 72% from the all-time high. 2014, 2018, and 2019 bear markets lasted on average 330 days. Peak drawdowns during those times hit 85%. That being said, price action does not kill innovation and adoption. We will review some indications of such trends. Today we have investors accepting volatility and deploying capital into a down market. We will present some data to show why, based on historical trends, it might be a great time to do so.
TL;DR (Too Long; Didn't Read)
- BlackRock offers institutional clients a bitcoin trust. $10T * 2% = a lot
- The Federal Reserve sends letters to banks asking about "Crypto-Asset-Related Activities"
- FOMC meeting minutes show more interest in how digital asset markets affect traditional markets
- Well understood models attempting to predict the bottom of a bitcoin market cycle have hit, indicating a potential bottom
- Small buyers continue to purchase bitcoin and appear to be unphased by price
- Lending Rates increase as illiquidity continues
- Large accounts that hold more than 1,000 bitcoin have been accumulating like mad
- Ethereum is updating and 245,000 bitcoin is locked on their network
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