Both traditional and crypto markets fell in August as the macroeconomic landscape remains in worrying territory, with elevated inflation figures and increasing interest rates reducing the appetite for risk-assets.

August Highlights

• Volatility across cryptocurrency markets continued to decline in August from the highs reached in May. ETH and SOL were the most volatile assets, with a 30-day volatility of 91.4% and 79.4% respectively. Bitcoin’s volatility fell below 50.0% for only the third time this year, before rising slightly and closing the month at a 54.6% volatility.
• ETH outperformed other cryptocurrencies after falling just 7.47%, likely in anticipation of the Merge in the coming days. The S&P500 and NASDAQ saw negative returns after a positive month of July. Apart from ETH, the two equity indices were the two best risk-adjusted performers, with a monthly Sharpe ratio of -0.17 and -0.15, respectively.