Bitcoin’s correction in May is recorded as the sixth worst correction in its history. The sell-off was accelerated by Elon Musk’s tweet about suspending Tesla car purchases with Bitcoin. Major cryptocurrencies lost between 30% and 75% of their value last month.

The Solidum Crypto Quant strategy underperformed the market in the previous month. The market recorded a loss of -27.85% and the Solidum Crypto Quant portfolio ended the month with a loss of -43.60 %.

Chart 1 - Solidum Crypto Quant Performance (2021-05)

Nevertheless, market fundamentals haven’t changed. Despite the recent correction that also affected our performance in May, our long-term view of the crypto market remains unchanged. A new all-time high eventually followed every correction. We firmly believe that this will also be the case after last month’s pullback. Our focus in the following weeks and months will be on recouping the losses and generating positive returns for all our investors.

By the end of May, the strategy was 50% invested in the market, with the three highest weighted holdings in the portfolio being Ethereum, Polygon and Binance Coin.

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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.

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