In this week’s newsletter:
- Reduced correlation between crypto and risk assets may be temporary.
- Crypto token technicals take more focus.
- Majority of merchants surveyed plan to enable crypto payments.
Read our weekly round up below.
Market Updates by Robert Lynch | Head of Research and Strategy
Market Update: Crypto and Risk Asset Correlations Reconsidered; Regulations and Risk in Crypto Currencies
Robert Lynch – ALT 5 Sigma | June 10, 2022
There has been increased attention on the decline in the correlation between crypto and risk assets. Since May, bitcoin has measurably underperformed the Nasdaq Composite Index, falling ~25% versus a 9% decline in the Nasdaq. Part of difference in returns is due to bitcoin’s higher volatility, but not all of it.
ALT 5 – Digital Assets Morning Call
Robert Lynch – ALT 5 Sigma | June 6-9, 2022
The Digital Assets Morning Call is a new segment by Robert Lynch, the Head of Research and Strategy at ALT 5 Sigma. This is a brief rundown of the latest developments impacting digital assets through a macro lens.
Crypto News From Around The World
Cryptocurrency Bill Will Mitigate Key Risks For Web3 Investors
Forbes | June 9, 2022
Bipartisan crypto legislation titled “the Responsible Financial Innovation Act” was introduced Tuesday by Cynthia Lummis (R-WY) from the Senate Banking Committee and Kirsten Gillibrand (D-NY) from the Senate Agriculture Committee.
The bill addresses many thorny issues with regards to cryptocurrency regulation, such as delineations between CFTC and SEC jurisdictions, stablecoin collateralization requirements, and the treatment of digital assets for tax purposes.
Study Reveals 30% of Billionaires Have Direct or Indirect Investments in Crypto
Finbold | June 10, 2022
As the adoption of cryptocurrencies as a valid alternative to traditional assets continues around the world, some groups are adopting them faster than others, and one study has revealed that billionaires are leading the way.
Specifically, a survey of 65 of the world’s wealthiest people has found that almost 30% of them have either direct or indirect investments in crypto, “a rate that is higher than among non-billionaire investors,” the Forbes magazine stated in a report from June 8.
New Crypto Bill Could Give CFTC Another Boost in its Quest To Regulate Digital Assets
MarketWatch | June 10, 2022
The crypto industry has spent millions lobbying the U.S. Congress in recent months as it seeks to shape digital asset regulations, and it appears that spending has been paying off.
The industry has long hoped for the Commodity Futures and Trading Commission to be granted primary authority for overseeing digital assets, and the U.S. Senate looks eager to do just that, following news that the leading Democrat and Republican on the Senate Agriculture Committee plan to submit legislation to expand the regulator’s role in crypto markets.
Deloitte Survey: 85% of Merchants Say Enabling Crypto Payments Is High Priority
Bitcoin.com | June 10, 2022
Financial services firm Deloitte published a report titled “Merchants getting ready for crypto” on Wednesday in collaboration with payments giant Paypal.
The report includes the results of a survey conducted between Dec. 3 and Dec. 16, 2021. The survey polled a sample of 2,000 senior executives at retail organizations with annual revenues ranging from less than $10 million to over $500 million across the U.S.
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