Dopamine Investments officially launched on May 1, 2025. By the end of the second quarter, the fund recorded a total return of +24.21% while maintaining a low risk profile.
Our multi-strategy approach is designed to limit market risk and reduce the high volatility typical of crypto assets. This strong performance reflects both the effectiveness of our strategy and the market conditions during the quarter.
We capitalized on several overlooked structural opportunities, including areas where reduced liquidity created pricing imbalances.
Macroeconomic & Market Background
In recent months, global liquidity has surged, and Bitcoin has started to respond. Its relative strength compared to altcoins is mainly driven by rising institutional demand:
- Bitcoin ETFs have absorbed over 1 million BTC since launch
- Public companies are now allocating Bitcoin as a strategic reserve asset
At the same time, the U.S. dollar is weakening. Since January 2024, the DXY index (which tracks dollar strength) has dropped by more than 13%. Historically, when sentiment turns against the dollar, Bitcoin and gold tend to rally, with Bitcoin typically following gold’s rise after a short delay.
Key concerns affecting the dollar include:
- Political pressure on the Federal Reserve, especially around the 2024 U.S. election
- Proposals to replace Jerome Powell with a more loyal Fed Chair
- Ideas to refinance U.S. debt using 100-year+ maturities, effectively inflating away the debt over time
The U.S. now faces three main options for handling its growing debt:
- Grow GDP faster than debt: currently unlikely without major productivity gains (like AI or robotics)
- Inflation: to reduce the real value of the debt
- Restructuring: extending debt maturities significantly
In this environment, Bitcoin continues to grow in appeal as a hedge against long-term monetary risks, precisely what it was designed for.
Altcoins & Market Structure
The altcoin space is shifting. Instead of hype or vague roadmaps, the market is now focusing more on projects with:
- Real revenue
- Active user bases
- Sustainable business models
On the other hand, altcoins offering just governance or lacking adoption are losing traction. This trend is encouraging — it supports better capital allocation and brings crypto closer to traditional finance standards.
Meanwhile, memecoins and cult-like on-chain tokens continue to draw attention for short-term speculation. These assets often admit they have no real value. Their price movements are driven by community sentiment and viral trends.
For these, strict risk management is essential due to their high volatility and short-lived cycles.
Outlook & Next Steps
We expect positive momentum to continue for both Bitcoin and altcoins. However, we’ll maintain a conservative allocation in line with our fund mandate.
We increase exposure only when:
- Markets pull back sharply (value entry opportunities)
- Black swan events create short-term price dislocations
Our main goal remains the same: long-term, stable performance with low volatility, supported by disciplined risk management, just as we’ve delivered so far.
