Chart of the week

Last week, a study went viral showing the impact of missing the best days in the S&P 500. The findings revealed that missing just 10 of these days would erase half the profits, and after 40 days, investors would face losses.  

We conducted the same analysis on a $10,000 investment in crypto via the Nasdaq Crypto IndexTM(NCITM) since its inception in January 2021. The results are even more striking for this emerging asset class.

 

 

 

 

In essence, missing the 10 most lucrative days would transform a 124% gain into a 30% loss, underscoring the value of consistent investment. This highlights how crypto, with its volatile and asymmetric nature, rewards patient investors who adopt a "time-in-the-market" approach rather than chasing the elusive goal of "timing the market."

 

 

Market Highlights

 

Stablecoins surpass $230 billion in market value

The total stablecoins market capitalization surpassed $230 billion amid growing institutional demand for dollar-backed digital assets.

This showcases one of the most successful applications of crypto in enhancing traditional financial payments. It could also pave the way for new use cases that require a strong and reliable payment system.

 

SEC drops lawsuit against Ripple Labs

Ripple CEO Brad Garlinghouse announced that the SEC has dropped its lawsuit against Ripple Labs, concluding a legal battle that began in 2020.

This highlights the shifting focus of the new US administration and regulatory bodies on regulating crypto by rules rather than by enforcement, and may shape future regulatory approaches, leading to clearer guidelines and fostering innovation in the industry.