Key takeaways:
- Pulse BTC (+31,00%), Pulse ETH (+10.73%), and Wise XRP (flat) are the top three performing bots in the last month.
- US CPI inflation in May was higher than expected, and crypto market conditions were exceptionally difficult, many crypto company giants being in jeopardy. In such a bloodbath, these three bots still significantly and remarkably outperformed their benchmark. Pulse BTC and Pulse ETH outperformed indeed their respective benchmarks (underlying asset) by more than 40%.
Market Recap for the last 30 days
On June 10, the Bureau of Labor Statistics revealed that the May consumer price index (CPI) in the US had surged at 8.6% to a 40-year high. This figure was above market expectations of 8.3%, prompting speculation that the Fed could raise the pace of interest rate hikes to 0.75% rather than the previous move at 0.5%. As a result, US stocks plunged sharply, and as predicted, cryptocurrencies followed the decline of tech stocks in a highly correlated pattern. Moreover, because of Luna’s crash, many cryptocurrency heavyweights, like Celsius, BlockFi, and Three Arrows Capital, were experiencing a liquidity crisis with cascading consequences. Therefore, these macro issues caused the cryptocurrency market to decline drastically in June.
Top June 2022 Performance
Top 1 – Pulse BTC: +31.00%
The Pulse BTC trading bot performed extremely well (+31.00%) compared to its benchmark (-26.52%) in the past month. This trading bot opens either a long or short position depending on market movement. The Pulse BTC trading bot was able to profit from the downtrend brought about by US inflation and liquidity issues for crypto companies.
This trading bot did poorly in the red circle on June 3, due to false signals and a volatile market. But it rapidly neutralized the holdings to stop further losses. The market’s concern over the Fed raising interest rates impacted the BTC, which made BTC fall from $32,000 to the lowest level of 2022, $18,000 on June 19.
Nevertheless, as the left green loop around June 12 displays, the Pulse BTC trading bot grasped this opportunity to open several continuous short positions’ to profit from this sharp downturn in the crypto market.
Additionally, the bot continued to profit from the slight bounce in mid-June and to open a number of long positions. It liquidated them before the decline continued after the announcement that Three Arrows Capital was experiencing a liquidity issue.
Top 2 – Pulse ETH: +10.73%
In the last month, the Pulse ETH trading bot performed well (+10.73%) compared to its benchmark (-30.65%). Based on market fluctuations, this trading bot opens either a long or a short position.
This trading bot initiated erroneous purchasing positions on June 12 due to incorrect signals and a volatile market, resulting in a slightly poor performance, as seen in the red circle. To avoid further losses, the bot swiftly neutralized the positions.
The trading bot accurately identified the slump caused by the US CPI in May and several crypto firm giants in peril around June 15. It opened multiple short positions to benefit from this strong downturn trend until June 19.
Additionally, the Pulse ETH bot perfectly seized this reversal uptrend ( first green circle) to open long positions around June 21 at a price ranging around $1000 . This happened just as Three Arrows Capital was trying to raise ETH’s price to prevent their enormous holdings in ETH being liquidated further on June 19.
Top 3 – Wise XRP: flat
The Wise XRP bot managed not to take the drop (flat performance) compared to its benchmark (-5.99%) in the previous month. The Wise XRP trading bot can only open a long position to profit from market uptrend movement.
Due to the two factors outlined in market review, the cryptocurrency market experienced a sharp decrease. However, the Wise XRP bot didn’t open any long position, preventing any loss from this dramatic market decline.
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Disclaimer:
Investing involves risk, including the possible loss of all the money you invest. In particular, crypto-assets are a highly volatile and speculative asset class. HAL is only suitable for traders who are willing to bear the risk of loss and experience sharp drawdowns. Past performance is not necessarily a guide to future performance.
The purpose of this material is to provide objective, educational and interesting commentary and analysis on developments in the crypto-assets sector. Nothing in this material should be interpreted as constituting an offer of (or any solicitation in connection with) any investment products or services by any member of the CoinShares Group where it may be illegal to do so. Access to any investment products or services of the CoinShares Group is in all cases subject to the applicable laws and regulations relating thereto.