Fed Rate Cuts & Altcoin Whispers

This past fortnight saw the US Fed drop interest rates by half a percentage point. Now, as an avid reader of this newsletter you will know what that means for risk-on assets like Crypto. In case you’ve forgotten, it’s good. This is because liquidity typically leaves traditional markets when rates drop as the returns are no longer satisfactory (yes, 0.5% can be enough for some institutions). When modelled out, the risk adjusted return may wash out better with assets that fluctuate in value rather than treasury bills.

TOKEN2049 was on last week too, we had both directors James and Charlie in attendance. The industry is thriving internationally with some truly groundbreaking technology being developed. A highlight is using blockchain to reduce physical infrastructure costs of large computing projects like AI. Blockchain does this by allowing ordinary people to submit their residential computing power to the network and in return receive ‘rent’ - all without meeting the counterparty. Be sure to follow us on LinkedIn for more updates on what we saw!

There are whispers around the ecosystem that alt season may be about to kick off 🧐. This is when value starts to rotate out of Bitcoin and into smaller cap tokens, typically with radical volatility. While we will inevitably hear about eye-watering profits, there are countless untold stories of losses during this period. These rumours have begun to circulate now that ETH/BTC has broken out of a long term downtrend, do with that what you will!

Never a dull moment, thanks for being with us.