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Market wrap - July 6th, 2020

Commentaries & Views

1. Cryptocurrencies, as represented by the CIX100 Index (in blue) outperformed traditional assets such as S&P 500 (in Red), and Gold (in Black), in 2020.

  • In the choppy first half of 2020, cryptocurrencies outperformed the S&P 500 by ~28% and Gold by ~7%.

  • In Q2 of 2020, major asset classes saw a recovery from the COVID-19 shock in end March. Cryptocurrencies led the move, outperforming the S&P 500 (in Red) by ~20% and Gold (in Black) by ~28% for the quarter.

2. BTC is displaying stronger characteristics of a risk asset, as Bitcoin – S&P 500 Realized Correlation hits 2- year high, crossing 65% at the start of Q3 2020.

3. As BTC consolidates in a tight range from 8800 to 9300 in the past 10 days, its realized volatility continues to plunge to a 1-year low of 35% (on par with S&P 500)

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