Bullishness continues in August.

TL;DR:

  • Current market situation:
    • Short-term: Consolidation / Correction
    • Long-term: Modestly bullish
  • The crypto market experienced phenomenal growth during August.
  • Our strategies captured the majority of the market growth and outperformed Bitcoin.

Market overview

After breaking through the $30 – $42k price range in July, Bitcoin continued to appreciate throughout August, generating a monthly return of +14.67%. However, investors were more interested in altcoins during August, as shown by the performance of the MVIS 100 Index (Crypto Market), which outperformed Bitcoin and ended the month with a +28.55% gain.

Upon analysing similar past activity, it is clear that small-cap assets tend to outperform large-cap and mid-cap assets when the broader crypto market appreciates throughout the month (as it did in August). However, some of these assets are unsuitable for our portfolio selection since they have insufficient volume and liquidity to support our orders.

As the market appreciated, we gradually increased our positions and our exposure during the previous month. Also, due to the fact that altcoins performed relatively better compared to Bitcoin during August, we entirely sold our BTC position and reallocated it amongst large-cap, mid-cap, and DeFi assets.

Crypto market performance (2021-08)
Crypto market overview (2021-08)

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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.