Invictus Capital: Weekly Wrap 26.03
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After last week’s frantic volatility in traditional markets, things were significantly calmer, with most stock indices globally edging down under the weight of a stronger dollar — driven largely by euro weakness as we continue to see disappointing pandemic news from the region. We continue to see a rotation away from growth stocks, including tech companies, into value stocks. These include energy and commodity producers, many of which received additional support to valuations from the impact of the ongoing Suez Canal blockage; this has seen a broad uptick in commodity prices for which the canal is a major transport route. The ongoing blockage is estimated to be costing the global economy in the range of $400 million per hour.
The uptick in safe-haven demand from these two issues supported US bonds, with US Treasury yields trending down over the week (bond prices and yields are inversely related). The strong dollar weighed on gold prices to see a slight decline over the week, with easing in real yields and an uptick in safe-haven demand unable to spare the yellow metal.
Crypto market participants were mostly fixated on the simultaneous expiries of weekly, monthly, and quarterly options totalling a record $6 billion in open interest today. The heightened financial incentive around the price at expiry weighed on the markets, converging with selling pressure seen earlier in the week — although Bitcoin still remains comfortably above the $50,000 level. Tesla’s Technoking announced that Bitcoin payments for their vehicles are now live in the US, adding that Bitcoin received will not be sold, and that Tesla is running their own Bitcoin nodes, signalling that the company is well-aligned with the overall ethos of cryptocurrency.
The highly anticipated Uniswap V3 was released, putting forward a more capital efficient solution to AMM’s, although this ultimately turned out to be a “sell the news” event for the protocol’s UNI token. C10, which has been 50% cash hedged since last Monday’s rebalance, emerged as the preferable crypto performer this week. Looking ahead, the market is now free from the options expiry narrative and onchain analytics continue to show classic institutional-style Coinbase outflows, signalling that contrarians should beware of betting against bull market continuation.
Indicators (19 March — 26 March)
- Invictus Margin Lending (IML): $1.21, +20.37% (weekly compound annualized rate)
- Invictus Gold Plus (IGP): $1.06, -0.34%
- Emerging Markets Solar (EMS): $1.23, +0.18%
- Crypto10 Hedged (C10): $5.12, -5.36%
- Crypto20 (C20): $2.84, -7.58%
- Invictus Bitcoin Alpha (IBA): $2.55, -9.54%
- Invictus Hyperion Fund (IHF): $0.238 (Updated Q4–20)
- BTC: $51,445.16, -10.85%
- ETH: $1,588.47, -10.65%
- GOLD: $1,728.90, -0.43%
- S&P500: 3,909.52, -0.15%
The Invictus Capital Ecosystem: ICAP program ; Invictus Liquidity Mining
ICAP is the community reward token of Invictus Capital backed by a portion of fee revenues generated by the company’s funds. Investors can earn ICAP by staking their Invictus fund tokens on the platform — as well as receive ETH airdrops by adding liquidity to Uniswap. Get rewarded daily. $10,000 per month will be distributed to each Uniswap pool.
Read more and learn how to add liquidity for ICAP (and C20) here!
Other News & Links
- Invictus in the Press/News
1. YouTube coverage [Jason Pizzino]
2. Cointelegraph: Mayor operadora de TV por cable de Venezuela aceptará criptomonedas como forma de pago [Hyperion, Cryptobuyer coverage]
3. Live Bitcoin News: Analysts Argue Over Whether Bitcoin or Ethereum Will Rule the Crypto Future [coverage]
4. ICAP was listed on Livecoinwatch
- How That Massive Container Ship Stuck in the Suez Canal Is Already Costing the World Billions of Dollars
- Pandemic worries weigh on European shares
- Syntropy News
1. Forbes coverage: The Real-World Pied Piper Of The “New Internet”
- Bitcoin Traders Brace for Record $6B in Options to Expire Friday
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