Invictus Capital: Weekly Wrap 17.12
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Market News
Bitcoin and Ethereum spent the week consolidating while altcoins outperformed. After a brief weekend rally the market retreated at the start of the week, testing previous levels of support (Bitcoin — $47,000. Ethereum — $3,800) in the leadup to the Fed’s much-anticipated monetary policy statement. The Fed’s hawkish midweek announcements were somewhat surprisingly welcomed by the market with Bitcoin rebounding towards $50,000 (more on the Fed below). This optimism was however short lived, with Bitcoin and Ethereum closing out the week where they began. Notably most altcoins managed to outperform Bitcoin and Ether, showcasing the benefits of investing in a diversified crypto portfolio such as our C10 and C20 funds.
AVAX had a stand-out performance, up around 20% this week as the ecosystem continues to break into the mainstream (with recent exchange listings helping). Another top performer this week was Dogecoin after Elon Musk, Time’s person of the year, tweeted on Tuesday that Tesla “will make some merch buyable with Doge & see how it goes”. Doge briefly jumped 37% before settling around 8% above pre-tweet levels. This latest announcement signals the start of a new era of commerce and is trailblazing a path for altcoins to expand their use case.
As expected, the US Fed’s quarterly monetary policy statement was the key event driving all markets this week. Most have been expecting the Fed to take a harder stance against inflation after the Fed’s transitory inflation narrative was abandoned by the market mere weeks after the September meeting. The Fed obliged, signalling that the tapering of QE would accelerate further to end in March, and calling for 3 rate hikes in each of 2022 and 2023 to bring inflation back down to around 2.5%.
The Fed appears confident that a shift in demand from the currently-overheated goods sector into services would help in this moderation; though this just looks like a revival of the ‘transitory’ narrative. Markets — believing this forecast — rallied firmly (defensive positioning in the leadup to the statement being unwound also played a role). Bond yields fell across the board, the dollar weakened, and gold firmed. If it becomes clear that further hikes will be needed (and history suggests they will as real rates are still sub-zero), expect a major bout of market volatility — with the volatility in the wake of the Bank of England’s surprise rate hike Thursday offering a glimpse of what to expect. This uncertainty makes a strong case for considering investment into funds that prioritize capital preservation, like IBA, IML or C10.
Indicators (10 December — 17 December)
- Invictus Margin Lending (IML): $1.30, +7.96% (weekly compound annualized rate)
- Crypto10 Hedged (C10): $8.28, -1.74%
- Crypto20 (C20): $4.33, -3.21%
- Invictus Bitcoin Alpha (IBA): $2.54, -0.47%
- Invictus Hyperion Fund (IHF): $0.462 (Updated Q3–21)
- Invictus Capital Token (ICAP): $8.92, -5.90%
- BTC: $47,646.35, +0.15%
- ETH: $3,957.28, -3.62%
- GOLD: $1,798.81, +1.28%
- S&P500: 4,668.67, +0.03%
Invictus Incubations: Invictus Makes Foray Into Fast-growing NFT Space
Invictus is proud to announce involvement in two new NFT projects: The Invictus NFT Lab — Out Of Africa Collection and the incubation of Air Guitar Academy. Check out the Litepaper.
Read more in the post here.
Invictus Yield Vault
Invictus Capital is thrilled to announce the public launch of the Invictus Yield Vault. The Yield Vault allows qualifying lenders the opportunity to lend a minimum amount of $25,000 BTC, ETH and/or Stablecoins for highly competitive interest rates to Invictus Alpha, Invictus Capital’s trading division.
The Vault is now seamlessly integrated into the investor portal on the Invictus Capital website! Prospective crypto lenders now have a single web location to effortlessly view Yield Vault information, crypto lending interest rates, FAQ information, and contact our Yield Vault Team.
To view our rates and contact our Vault team, please visit our landing page.
Borrow Against Your Crypto With Peace of Mind
Crypto users can now borrow against their crypto secure in the knowledge that their investment will not get liquidated.
Invictus Alpha (the trading company of Invictus Capital) has engineered a new product that is offering users the opportunity to borrow USD-based stablecoins (or BTC and ETH) against BTC and ETH with no risk of liquidation.
Check out the articles here and here. To inquire, please complete this form.
Schedule a call with the Invictus Sales Team
Schedule a call with Tom or Ivor from our Fund Sales team if you have any questions or need assistance with your Invictus investment(s).
Alternatively you can call us on +1 (345) 769–7491 between 7:00–16:00 GMT.
Other News & Links
- Invictus in the Press/News
1. Invictus Capital: Making Cryptocurrency Investment Convenient
2. VentureBurn: Friday interview: Matthew Finlayson, Invictus Capital co-founder
3. Cointelegraph: Should you buy crypto after a flash crash? - Market Wrap: Altcoins Outperform as Ether Rises Toward $4K
- Powell Declares Inflation Big Threat as Fed Signals Rate Hikes
- SolStreet News
1. Upvote SolStreet on Solana
2. Wolfpack of SolStreet application form. Want to manage a $10,000 seeded fund? Apply now — T&Cs are here. - Tesla to Accept Dogecoin as Payment for Merchandise, Says Musk
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