A weaker dollar increased risk appetite for traditional assets such as US equities, emerging markets, and gold. Neither tech stocks nor crypto assets participated in this rise. Recently, most Layer-1 smart contract platforms underperformed Bitcoin and Ethereum as investors sold anything they could to fund redemptions amid broader sector deleveraging. The ongoing consequences from the FTX fraud, many Bitcoin miner bankruptcies, and solvency concerns at DCG's lending business Genesis, in particular, provided fundamental and liquidity-based obstacles.
Read more in our Digital Asset Quarterly Review.