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Crypto’s Election Year Power Play: Are You Ready?
How Our Fund Outpaced the Market + Why 2024 Could Be Crypto’s Breakout Year
Mike Klein & Alexis Mollet
October 15, 2024
Digital Wealth Insider - Portfolio Update Sep ‘24
First and foremost, thank you for your continued partnership on this investment journey. Your support is invaluable to us.
Fund Performance
The fund's performance this past month was up +13.4% (after fees). The fund has a positive annualized return of +17.54% since the fund launched in August 2023.
September brought some notable changes in the crypto world, and we believe there could be exciting opportunities on the horizon. Here are the highlights:
1. The Crypto Election Year
The 2024 election year is shaping up to be a major turning point for crypto. Historically, election cycles have been bullish for the industry, and this year crypto companies have poured nearly half of all corporate donations into political action committees, contributing $202 million to influence federal elections. Leading companies like Coinbase and Ripple are at the forefront, backing both Republican and Democratic candidates. This bipartisan political momentum hopes to shape favorable regulation for the long-run, providing a strong foundation for future growth in the space.
2. Rate Cuts in the US and China
The recent rate cut by the Federal Reserve gave the market a boost, with Bitcoin rising by 10% soon after. If further cuts occur, it could bring more liquidity into digital assets like Bitcoin. In addition, China is actively stimulating its economy with aggressive measures from its central bank, which could also have a positive impact on global markets and digital assets. Together, these factors may lead to increased global liquidity and then capital flow into the crypto space.
3. Bitcoin Supply Appears to Be Shrinking
Over 500,000 Bitcoin (approx. $30 billion) has been taken off exchanges this year, suggesting fewer people are selling. With lower available supply, prices might go up, which could signal a potential price surge soon.
White is the price of BTC, Purple is the amount of BTC on exchanges
In September, MicroStrategy, the biggest Bitcoin holder, bought $1.5 billion worth of Bitcoin. We believe this could be a sign that we’re close to a local bottom. When big players like MicroStrategy make large purchases, it shows confidence in Bitcoin’s future value and potential for growth.
We’re excited for what could come in Q4. With these developments, now might be one of the last times to position yourself for the next big bull run.
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