How Far We’ve Come

It’s hard to believe two years have gone by since COVID-19 upended our world. We were reminded of that as yesterday marked the two-year anniversary of the market bottom. It didn’t seem like a bottom was in sight that day, let alone the returns we’d experience over the following two years. And the headlines certainly weren’t offering anyone any comfort…

The Wall Street Journals’ News Archive for March 23, 2020

We’ve spent a lot of time talking about the latest market correction and how crypto can’t seem to break out of its recent range, but here’s some interesting perspective. BTC is up over 550% since the S&P 500 bottomed on March 23rd, 2020; ETH’s return is nearly quadruple that, and that’s after its latest 40% drawdown. Oh, and the Nasdaq 100 doubled over that period too. Basically, as long as you weren’t long Treasury bonds, you made out pretty well.

After such a stellar run, many are now questioning whether this market still has legs. We know the last six months have not been kind to the crypto market. Year-over-year returns for BTC have now flipped negative. Notably, prior instances indicate most of the pain could be behind us.

Bitcoin has yet to breakout of its trading range, but we have been seeing some strength in certain pockets of the crypto market, making for better trading setups than weeks prior. We’ve discussed a handful of names on our radar the last few weeks, including AVAX, LUNA, and the privacy coin sector. We’re also tracking a handful of other crypto assets with increasingly attractive price action, which we’ll provide more detail on as they firm up.

Preparing for an Avalanche

In a few of our previous Market Insights reports, we hit on several potential catalysts for Avalanche heading into Q2, including the $290M Avalanche Multiverse Incentive Program, the Terra <> AVAX announcement from Do Kwon, the 2022 Avalanche Summit & Hackathon in Barcelona this week (March 22-27th), and the general uptrend in network growth.

The Avalanche Summit this week welcomed some of the brightest, most influential names in crypto. Like many protocol-focused events, key topic areas included DeFi, web3, gaming, and the future of the “metaverse”. There was also talks on institutional capital and wher