Katana month to date performance, as at August 15th is +4.78%. Bitcoin began August trading at $64,500. A confluence of macro events including weak US jobs data, a Japanese interest rate rise threatening the carry trade and mid-east tensions combined to create a massive headwind for global risk assets. Bitcoin was not spared and the ensuing risk-off price drawdown saw lows below $50,000. The Sunday-Monday price collapse & subsequent recovery saw BTC futures volume make its highest ever print. The market was able to accommodate the selling pressure and it is encouraging that the price recovery took place on exceptionally strong volume.

The Katana programme established short positions in the first days of August at the $63,000 mark. Due to the ferocity of both the price collapse and recovery, the algo had little time to adjust exit levels. Theses short trades were profitably closed at average prices between $56,000 and $59,000 for the various timeframes.

A solid case continues to be made for the efficacy of a non-zero position in Bitcoin. Its robust behaviour in these last few weeks is testament to it’s inherent strength. No more so than during periods where the market recognises and reacts to the plethora of weaknesses in the current global monetary framework.