After a volatile price action in the first four months of 2020, the market has been without a clear direction. It gained 8.4% in May, then lost 7.0% in June, delivering a flat performance of 0.8% over the last two months.

Bitcoin is consolidating in the range between $8,900 and $9,900, with occasional fake breakouts on both sides, resulting in headaches to many traders. Once the actual breakout occurs, we can expect a decisive move in either direction.

In June, Solidum Cautus slightly underperformed with a negative monthly performance of 10.29%, compared to the market’s monthly performance of -6.98%.

Chart 1 - Solidum Cautus Performance (2020-06)

So far, this year has been one of the most volatile for the crypto market. If we take a look at the performance since the start of the year, the crypto market generated a YTD return of 40.09%. The Barclayhedge Cryptocurrency Traders Index, which represents our peers, has underperformed the market and reported a YTD performance of 15.91%. On the other hand, Solidum Cautus has outperformed its peers and the crypto market in the first half of the year and generated a YTD return of 54.93%.

Chart 2 - SOCT-MVIS-BHCI Performance YTD

While it’s impossible to predict future price movements, the market’s trajectory indicates a short-term consolidation period for cryptocurrencies. However, as we have experienced many times in the past, a fast breakout in either direction is also probable. Our focus in uncertain times is always to protect the portfolio from downside risk; therefore, on 15 June, our Investment Committee decided to allocate the majority of the portfolio (90%) to stablecoins. Due to the ICONOMI-liquidity rules, 5% remains invested in Bitcoin and the other 5% in Ethereum.

Our Crypto Strategies

Follow us on social media:

Facebook | LinkedIn | Twitter | Telegram | YouTube

DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

Want to become a better crypto investor?

Receive our news straight to your inbox!

Want to become a better crypto investor?

Receive our news straight to your inbox!