ALTERNATIVE MARKETS UPDATE – MID MARCH 2024

​The cryptocurrency market is maintaining the strong momentum it gained at the beginning of the year. Bitcoin (BTC) is spearheading the lead in the space. BTC soared to above $73k as of the time of writing and surpassed its previous high of $68k achieved back in 2021. To date, BTC is up 70% in 2024. The most notable reasons for the strong performance are the spot BTC ETF approval and the subsequent money flowing into BTC. For example, BlackRock now owns more than $10bn in BTC. Another key driver is the upcoming Bitcoin Halving that is anticipated to occur in mid-April 2024. Historically, this event starts the strongest bull run in the BTC cycle. Thus far, BTC was among the best-performing crypto assets in 2024, but Ethereum (ETH) managed to overtake BTC over the past few days and gained 78% in 2024. This development is also akin to prior cycles, when BTC typically initiates the bull run, while other tokens follow BTC and post stronger gains further in the bull run. However, unlike BTC, ETH has not managed to surpass its previous high of nearly $4.9k from 2021. Most recently, ETH surpassed the $4k for the first time since 2021. Figure 1 shows the price development of BTC and ETH from the end of 2022 to March 2024 alongside each token's previous high. Corresponding to these trends is the development of the crypto market capitalization. With the major currencies being close to or above their previous highs, the total cryptocurrency market cap is also close to a new record high. As of the time of writing, the crypto market cap is above $2.7tn, which is slightly lower than its previous high of $2.8tn.

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RESEARCH PERSPECTIVE VOL. 223 March 2024 Alternative Markets Update The cryptocurrency market is maintaining the strong momentum it gained at the beginning of the year. Bitcoin (BTC) is spearheading the lead in the space. BTC soared to above $73k as of the time of writing and surpassed its previous high of $68k achieved back in 2021. To date, BTC is up 70% in 2024. The most notable reasons for the strong performance are the spot BTC ETF approval and the subsequent money flowing into BTC. For example, BlackRock now owns more than $10bn in BTC. Another key driver is the upcoming Bitcoin Halving that is anticipated to occur in mid-April 2024. Historically, this event starts the strongest bull run in the BTC cycle. Thus far, BTC was among the best-performing crypto assets in 2024, but Ethereum (ETH) managed to overtake BTC over the past few days and gained 78% in 2024. This development is also akin to prior cycles, when BTC typically initiates the bull run, while other tokens follow BTC and post stronger gains further in the bull run. However, unlike BTC, ETH has not managed to surpass its previous high of nearly $4.9k from 2021. Most recently, ETH surpassed the $4k for the first time since 2021. Figure 1 shows the price development of BTC and ETH from the end of 2022 to March 2024 alongside each token's previous high. Corresponding to these trends is the development of the crypto market capitalization. With the major currencies being close to or above their previous highs, the total cryptocurrency market cap is also close to a new record high. As of the time of writing, the crypto market cap is above $2.7tn, which is slightly lower than its previous high of $2.8tn. Figure 1: Bitcoin and Ethereum Price from December 2022 to March 2024 and the Peak Price of Bitcoin and Ethereum in 2021, Source: CoinMarketCap, March 2024 This trend of BTC leading the crypto market initially is even more evident when considering other well-established altcoins, such as Solana (SOL) and Polkadot (DOT). Figure 2 shows the price developments of these two tokens in comparison to their highs in 2021. In comparison to BTC, which already surpassed its previous high in 2021, SOL is still trading 43% lower than its record high, while DOT is only at 20% of its record in 2021. Additionally, this trend also holds true in the current YTD. SOL gained 47%, while DOT increased by 34% vs. the 70% of BTC. Figure 2: Solana and Polkadot Price from December 2022 to March 2024 and the Peak Price of Solana and Polkadot in 2021, Source: CoinMarketCap, March 2024 STONE MOUNTAIN CAPITAL Stone Mountain Capital is an advisory boutique established in 2012 and headquartered in London with offices Pfaeffikon in Switzerland, Dubai and Umm Al Quwain in United Arab Emirates. We are advising 30+ best in class single hedge fund and multi-strategy managers across equity, credit, and tactical trading (global macro, CTAs and volatility). In private assets, we advise 10+ sponsors and general partners across private equity, venture capital, private credit, real estate, capital relief trades (CRT) by structuring funding vehicles, rating advisory and private placements. As of 2nd February 2024, Stone Mountain Capital has total alternative Assets under Advisory (AuA) of US$ 62.4 billion. 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