Podcast: Hear Truvius on CoinDesk’s Markets Daily Podcast

Check out this week’s CoinDesk Markets Daily Podcast to hear Truvius CEO & Co-Founder Connor Farley provide market commentary on last week’s price action and insights on a multi-sector approach to the crypto economy: Listen here

Transcript of commentary:

Over a week out from the landmark SEC approval of spot ether ETFs that occurred on July 22nd, price impact for ether has remained relatively subdued. Following a meaningful run-up in prices in Q1 of this year, the two mega cap assets bitcoin and ether appear to have found support and have generally trended sideways—a theme that has persisted over the trailing month. Large and mid-cap assets spanning crypto sectors that these two assets don’t belong to, however, have generally sold off over the trailing month, with meaningful performance dispersion seen across sectors.

From a macro perspective, regulatory and political sentiment has shifted in a more dovish direction in 2024 compared to 2023. While much ambiguity remains regarding an official framework for compliant crypto governance in the U.S., the SEC has now approved the two largest digital assets to trade as spot assets within ETFs, and on July 30th amended a complaint in its ongoing lawsuit against Binance in such a way that removes the need for the court to determine whether Solana, Cardano, and eight other digital assets are considered securities. Crypto markets have also recently gained visibility within political circles following the public endorsement of Bitcoin and its potential use as a strategic national reserve currency from major political figures at last week’s Bitcoin Nashville conference – an event that suggests mainstream digital asset adoption within the U.S. may force both sides of the aisle to embrace blockchain technology.

Assets benefiting from relaxed regulatory scrutiny and heightened political endorsement such as Bitcoin, Bitcoin Cash, and Solana have performed well over the trailing month, driving up the CoinDesk 20 Index nearly 10% over the trailing month ending July 29th. But crypto sectors that don’t include these assets such as Decentralized Finance, Media and Metaverse, Information Technology and Utilities generally sold off.

From an overall asset mix perspective, digital assets have exhibited notably low correlation to other asset classes such as stocks, bonds, and commodities. In fact, Bitcoin’s trailing 30-day correlation to U.S. bonds, global bonds, and commodity markets is currently negative, and its correlation to U.S. and global stocks is near zero, reinforcing the thesis of bitcoin as a diversifying asset that may lead to improved risk-adjusted returns for an investor’s overall portfolio.