The Terramatris crypto hedge fund has rebounded significantly this week, with the fund’s value increasing to $5,904, representing a 15.31% gain compared to the previous week. However, the drawdown from the all-time high still stands at -24.44%, reflecting the broader market’s ongoing volatility.
This recovery follows a highly turbulent period, during which Ethereum dipped below $2,000, triggering forced liquidations and widespread panic selling. As of now, market sentiment remains fragile, but some relief rallies have taken place and Ethereum (our most suffered position, has climbed above $2,000 again)
The past week has seen a mix of volatility and partial recovery. While last week’s sharp selloff pushed Bitcoin and Ethereum to new local lows, some stabilization has been observed in recent days. Ethereum has rebounded from its lows, and Bitcoin has also seen renewed interest from institutional investors.
From a technical analysis perspective, we maintain a cautiously optimistic outlook over the longer term. While we do not rule out the possibility of a reversal to $2,500 in the coming weeks or months, we acknowledge that market conditions remain dynamic and unpredictable.
Despite the recovery, risks remain as macroeconomic uncertainty and liquidity concerns persist.
Portfolio Adjustments
With the sharp movements in crypto prices, our focus remains on capital preservation and strategic risk management rather than aggressively adding new leveraged positions. Given our significant exposure to deep in-the-money ETH put options, we implemented a strategic adjustment last week by partially restructuring these positions into covered calls on long perpetual futures. This proactive approach aimed to optimize risk management, enhance capital efficiency, and mitigate downside exposure while leveraging existing market conditions.
Currently, we are managing the following positions using long perpetual futures settled in USDC.
- 0.01 BTC (break even: $109,079)
- 1.1 ETH (break even: $2,816)
- 5 SOL (break even: $171.73)
Holding long futures incurs a performance fee; therefore, we aim to limit our exposure to perpetual contracts by converting to spot once sufficient cash reserves are available.
As we have call options expiring tomorrow (March 21, 2025) - we look to generate additional options premium thus lowering our break even price for ETH under $2,800, Bitcoin around $108,000 and SOL around $168.
No new capital has been injected into the fund, and liquidity remains a priority.
TerraM Token Update
The TerraM token has outperformed much of the broader crypto market, continuing to show resilience.
- Current TerraM Price: $2.60 (no changes week over week)
We remain committed to improving liquidity, but given market conditions, we do not expect a significant liquidity increase or another buyback until total fund value reaches $8,000.
Looking Ahead
The market is still fragile, and risks remain elevated. Our primary objectives in the coming weeks are:
- Risk Mitigation & Capital Preservation – Avoiding unnecessary exposure to further downside volatility.
- Strategic Adjustments – Using options strategies and hedging techniques to optimize positions.
- Liquidity Improvement for TerraM – Continuing efforts to stabilize the token’s price action.
While institutional interest in crypto remains strong, traders should remain cautious in the near term, as the market could see further corrections before a more sustainable recovery.
Disclaimer: This update is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.