Week 36 Crypto Analysis
It has been a while since I did crypto analysis. As of now, I hold Bitcoin and Ethereum as long-term investments and have gone through the highs and the lows around it for about 2 years now.
I do believe in the crypto space as an investment asset class and intend to invest in the space. Other than the Ethereum holding, I have made several angel investments in startup companies that I expect will pay off in the long-term.
Bitcoin
Let us look at Bitcoin first. Below is the 1-month chart.
Bitcoin is down -9.8% over 1 month. However, it did spike over its 10-day and 20-day moving averages last week. And the price of 21,600 definitely looks better than the 18,800 it had touched just a week back. That is close to a +15% jump within 6 days. Tells you that Bitcoin (and crypto) still have the ability to jump very high very fast. That is why it is difficult to effectively trade it unless one is glued to the ticker 24x7.
Bitcoin returns over various periods:
5 days +16%
1-month -9.5%
3-months -23.5%
YTD -54.5%
1-year -52%
2-years +110%
The Bitcoin dominance stands at around 38%
As we can see the Bitcoin dominance has been steadily decreasing over the last year. At its high it was 47%. Recently it had fallen below 37% but just spiked up over the last few days as we can see from the price movement.
Ethereum
Reviewing the Ethereum 1-month chart. Overall, it looks better than Bitcoin.
The price has crossed over the 10-day, 20-day and the 50-day moving averages. Plus, the 10-day moving average has crossed over the 20-day moving average. That is trending short-term bullish per my system.
Returns for Ethereum over various periods are:
5-days +17.9%
1-month -5.8%
3-months +15.9%
YTD -52.9%
1-year -45.8%
2-years +373%
Ethereum vs Bitcoin
I do not get into the Bitcoin vs Ethereum debate. I believe both have strong use cases some of which overlap. I do like to see the relative performance. So, here is the YTD chart for that.
There have been a good number of fluctuations over 2022. That just means that sometimes Ethereum has been stronger than Bitcoin and other times Bitcoin has been stronger than Ethereum. Over 2022 we can see that Ethereum has gained just +3.47% more than Bitcoin. I would call that fairly even.
Crypto Altcoins
Altcoins have been a big factor in the overall crypto asset class. Although I am focused on Bitcoin and Ethereum, I do track some other altcoins just to stay abreast of the overall crypto space.
Comparing some of the large and famous Altcoins with Bitcoin over 2022 we see that Bitcoin has outperformed all of them. Of course, there are a lot more crypto assets and many of them will have outperformed Bitcoin, I am sure. However, given the risks that still remain in this space, I tend to be more conservative and avoid these.