HEYBIT Global | Alpha in Digital Asset

Welcome to Eric's Investment Diary with HEYBIT!

I look forward to investing alongside all of you, our HEYBIT customers, until we all achieve our financial goals together!

My Investment

• Since my last investment journal, it's been really difficult to watch the market. Today, Bitcoin dropped to 57k, causing significant declines across all cryptocurrencies.
• Those who have been following my journal know that I've been investing in both Alpha and Beta HMI, and there's a stark difference in their performance. In a way, this is what I had hoped for initially. I invested in Alpha as a hedging tool to mitigate the high volatility of Beta, and it's proving to be effective. Alpha has been consistently gaining despite the recent market downturn.
• Of course, I would love for the market to rebound quickly and see Beta rise rapidly, but even if the market continues to decline, having Alpha provides me with some peace of mind.

My Alpha status

• Compared to Last week,

  • Alpha’s Return: +2.76% → +10.15% (+7.39%p)
  • Alpha’s PNL : +41.48 USDT → +152.37 USDT (+110.89 USDT)

  

My Beta status

• Compared to Last week,

  • HMI12’s Return : -0.6% → -5.42% (-4.82%p)
  • HMI12’s PNL: -7.29 USDT → -64.9 USDT (-57.61 USDT)

  

Market Overview

☀️ FOMC June Meeting Minutes: "Economic Growth Cooling... Inflation Shows Slight Progress”

According to the Federal Open Market Committee (FOMC) minutes released by the U.S. Federal Reserve for June 2024, the majority of FOMC members indicated that economic growth is gradually cooling and that they must be prepared with policy responses to unexpected economic weakness. The committee members assessed that there has been some additional progress toward the 2% inflation target over the past few months. Some members noted that if inflation remains high or rises further, interest rate hikes might be necessary, and they are waiting for more information to gain confidence in lowering rates. They also agreed that the unemployment rate is expected to decrease gradually in 2024 and 2025.

⛈️ Foreign Media: "Signs of Liquidity Pressure in U.S. Banking Market... Possible Negative Impact on BTC”

CoinDesk reported that "signs of liquidity pressure are emerging in the U.S. banking market, which could negatively impact risky assets such as Bitcoin." As of the 1st of this month (local time), the Secured Overnight Financing Rate (SOFR), the interest rate benchmark of Wall Street's traditional financial sector, reached 5.4%, the highest in six years. This could indicate a lack of market liquidity. David Brickell, Head of International at FRNT Financial, a Canada-based institutional cryptocurrency platform, stated, "The current phase is reminiscent of the repo rate surge in 2019, with excessive government debt and stress from U.S. Treasury money issuance being observed. The current financial system cannot absorb this level of debt without additional liquidity injections from the Federal Reserve.”