Weekly Cryptocurrency Commentary
Currently, the global MCAP of cryptos is US$1.66T, down 16% MoM, and down 30% YoY.
Performance of Select Cryptos
Prices of mainstream/popular cryptos were down 22% on average last week.
Source: FRC / Yahoo Finance
Companies operating in the crypto space are trading at an average EV/R of 4.5x (previously 4.9x).
EV/R of Crypto Companies
Source: S&P Captial IQ / FRC
Source: S&P Capital IQ / FRC
Key sector developments listed below (mixed):
➢ To increase oversight, the SEC is ramping up hiring across its crypto fraud division.
➢ In hopes of less oversight, a bill introduced by members of both parties in the U.S. seeks to transfer regulatory oversight of cryptos to the Commodity Futures Trading Commission, instead of the Securities Exchange Commission.
➢ The U.S. Labor Department criticized Fidelity Investment’s plan to allow Bitcoin investments in 401(k) plans, citing the highly volatile nature of the asset class as a significant risk to retirement incomes.
➢ GUCCI (PA: KER), announced plans to accept Bitcoin and other cryptos as forms of payment for their goods.