Our monthly crypto overview for March:

• The crypto markets rallied substantially in March, booking double-digit percentage gains. 
• Bitcoin and Ether are up 21.31% and 21.24%, respectively.
• The top outperformer among the leading crypto assets was Cardano (ADA).

Crypto Market Overview March

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Following a volatile February, affected by the war in Ukraine and high reported inflation figures, the crypto markets showed resilience in March, booking double-digit percentage gains across all leading crypto assets. 

The two largest cryptocurrencies by market capitalization, Bitcoin (BTC) and Ether (ETH), rallied by 21.31% and 21.24%, respectively. 

As high inflation sweeps major global economies, more investors recognize Bitcoin’s power as a store of value and hedge against high inflation. Moreover, U.S. President Biden’s executive order to regulate digital assets was largely taken positively by the crypto markets. 

The price of Bitcoin has also been pushed higher by the Luna Foundation Guard (LFG) buying BTC to act as a reserve currency for Terra’s decentralized stablecoin TerraUSD (UST). 

According to Do Kwon, the CEO of LFG, who leads the Terra project, the foundation has purchased over $1 billion in Bitcoin since January. The Bitcoin reserves will be used to stabilize the price of UST, which uses a token minting and burning process to maintain its dollar peg. 

“The reason why we are particularly interested in Bitcoin is because we believe that [it] is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy,” Kwon told Bloomberg.

At the same time, the price of Ether (ETH) has benefited from a drop in gas fees as Layer-2 scaling solutions are experiencing increasing adoption and as the protocol moves closer to Ethereum 2.0. 

Crypto Performance Overview March

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March was an excellent month for crypto asset investors as they saw their investments make double-digit percentage gains. 

Bitcoin and Ether led the way, booking over 21% month-on-month returns. Next-generation Layer-1 chains, such as Solana (SOL), Terra (LUNA), and Avalanche (AVAX), followed suit, closing the month 21.34%, 25.30%, and 15.49% higher, respectively. 

The two market-leading exchange tokens – Binance Coin (BNB) and FTX Token (FTT) – also booked hefty gains, rallying by 16.90% and 21.10%, respectively. 

The top outperformer among the largest crypto assets by market capitalization was Cardano (ADA), which rallied by 34.50% after the venture announced that it has become EVM-compatible through the Milkomeda EVM sidechain, enabling Ethereum DApps to be deployed in the Cardano ecosystem.  

Stocks rallied as the prospect of a resolution to the Ukraine war is starting to look more likely, with the S&P 500 Index gaining 5.90%. Conversely, U.S. Treasuries, measured by the S&P U.S. Government Bond Index, closed the month -3.65% lower. 

Like Bitcoin, Gold (XAU) managed to fulfill its role as a safe haven asset, booking substantial gains in February and the first half of March as uncertainty surrounding the Ukraine war was rocking the markets. However, after a peak of $2,050, the precious metal dropped back down to $1,920, recording only a small month-on-month gain of 0.36%.

Institutional Interest in Crypto

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The CME Group has announced the launch of new cryptocurrency derivative products, adding options on Bitcoin and Ether micro futures to its suite of crypto products. “The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures,” said Tim McCourt, CME Group Global Head of Equity and FX Products.

Goldman Sachs announced plans to offer investors access to Ethereum’s cryptocurrency, Ether (ETH), through a fund issued by Galaxy Digital Holdings. The minimum investment size will be $250,000 as the bank targets large clients with this new service. 

Bitcoin on Balance Sheets

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NASDAQ-listed MicroStrategy, led by Bitcoin advocate Michael Saylor, has added more Bitcoin to its balance sheet after securing a Bitcoin-backed loan from Silvergate Bank (SI) to purchase more BTC. MicroStrategy is one of the largest Bitcoin holders in the world. 

Canadian fintech company Mogo (MOGO) has launched a VC arm, Mogo Ventures, to manage its mostly crypto-focused investments. In addition to equity stakes in Coinsquare and several web3 platforms, the company also reportedly holds C$1.7 million ($1.36 million) of Bitcoin (BTC) and Ether (ETH) on its balance sheet.

About Iconic Funds

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