Crypto Markets Assessment
I am a long-term investor in crypto space and do not look at the price on a regular basis. I hold Bitcoin and Ethereum in the ratio of 60:40 and that is how I will remain for the foreseeable future. Crypto is going through turbulent times so it makes sense to take a peek and see what is going on in the space. I am specifically talking about the coins/currencies.
The following table has the returns of the top 10 cryptocurrencies based on market cap. I have not included the “stablecoins” in the list as (theoretically) they are not supposed to have any returns against the US Dollar.
Interesting new entry in this assessment is TRON which is the only one trending bullish and also delivered superior returns all through 2022. Everything else is still trending bearish.
Bitcoin Strength
Bitcoin is faring less bad than the others and, in almost all periods of assessment, are slightly better than the others. This can also be seen in the rise of Bitcoin dominance to over 46% compared to around 41% at the start of the year. The Bitcoin dominance is measured as a percentage of Bitcoin market cap against all crypto market cap.
The strength of Bitcoin can also be seen in the Bitcoin against Ethereum chart:
We can see that the BTC-ETH price is trending strongly bullish. The returns are:
1-month +21.9%
3-months +10.4%
Year-To-Date +29.9%
The trend is clear for all of 2022.
Conclusions:
Bitcoin is very close to turning short-term bullish where the 10-day simple moving average crosses over the 20-day simple moving average. If that looks meaningful, I may add to my position.
In general, it has been good to stay away from the “altcoins”. As expected, in times of duress, money will flow out of Bitcoin last.
Need to check out TRON