Crypto Performance Since the Election

Crypto markets have experienced sharp declines in the last few weeks, catalyzed by macro uncertainty and some re-rating of valuations from the post-US-election exuberance. In the heady days of gains post-election, many were wondering if they had missed the trade. Now, only four months after the election, only 30% of tokens in the Top 100 at the time of the election are above their pre-election levels. The median token in the group is down 22%.

While some level of re-rating from exuberant post-election levels was inevitable, seeing most of the market down materially vs pre-election levels seems overdone. It’s hard to argue that the fundamental case for crypto now is worse than pre-election. In fact, it’s arguably much better, given the walk-back of many regulatory actions against crypto firms and new government focus on fostering crypto markets in the US.

As we said in a previous post - look for opportunities when markets draw back. Crypto allocations should be made with a long time horizon in mind. Macro headwinds will come and go, but investors that believe in the disruptive potential of blockchain and digital asset technology should look for entry points when others are fearful.

*The information herein is for general information purposes only and is not investment advice. Past performance is no guarantee of future results. Investing involves risk including the loss of principal.