July 2024 Review: Fear Grips Markets

"Every market bottom is surrounded by extreme fear, but not every instance of extreme fear marks a bottom"

We concluded our research on whether the Fear and Greed Index is a healthy barometer for market timing with this statement above. Our research was conducted one week after the FTX collapse in November 2022, a period when the crypto market was highly unstable, and the index fell to extreme fear levels.

Currently, the Fear and Greed Index has hit even lower values than during that time. Most digital assets have experienced their heftiest weekly losses since the FTX collapse. As a result, many traders were liquidated and have become disheartened, making them unlikely to return to trading in the near future.

We recommend revisiting this research now, as it may provide valuable insights during these turbulent times.

In July, Stoic AI strategies performed as follows: Fixed Income added +0.4%, maintaining its stable upward trajectory. Meta experienced a 4% correction after its June peak but remained within the normal drawdown range and has already gained +1.04% in August despite a market crash.

Altcoin index strategy (Long Only) showed positive performance, while Meta Long Only fell by 4.2%. The crypto market remains volatile and unpredictable, but Stoic provides tools to navigate these challenging periods.