CRYPTO MARKET UPDATE^[1]

By Cosmo Jiang, General Partner

After a six-month rally from the April bottom, the digital asset market pulled back in October.  Part of the pullback in risk appetite is attributable to building macro concerns – including the Fed striking a hawkish tone with regard to future rate cuts, the US government shutdown (as of this week resolved, for now), the brief US China tariff dispute, credit quality concerns rising as a number of large frauds were uncovered (see Howard Mark’s recent memo “Cockroaches in the Coal Mine”), and a more mixed earnings season than in prior quarters as investors balked at ever growing AI CapEx plans.

Digital assets performed worse than other risk markets due…