Bitcoin is unstoppable, what about altcoins?

After almost three years, Bitcoin smashed through its all-time high last week and already gained 111% in this quarter. Many investors are talking about the imminent “altcoins season.” Although it will happen eventually, nobody knows if it will start in one week, one month, or maybe even one year.

99% of institutional investors focus on Bitcoin, which will substantially increase its price in the future. It remains to be seen how this will affect altcoins. As shown in the chart below, they are trailing Bitcoin for now with a gain of “only” 46% in this quarter. We remain heavily overweight in Bitcoin until the technical picture demonstrates the change in trend.

Bitcoin vs. the rest of the crypto market performance (1 Oct 2020 – 21 Dec 2020):

BTC vs. altcoins - 2020 Q4

Market overview

November was an exceptionally positive month in many aspects, including the crypto market performance. After a slow start in the first two weeks, the market shot straight up in the third week, generating a 51.1% return until 24 November. This was followed by a sharp two-day pullback (-20%) and a strong rebound (+19.2%) in the last four days of the month. The market ended the month with an exceptional performance of 44.2%.

Chart 1 - Crypto market performance (2020-11)

After two months of Bitcoin outperformance, altcoins took the lead in November. 23 of the top 25 crypto assets by market capitalization posted gains in November, and the surprising top three performers of the month were large caps XRP (+177%), Stellar (+160%), and NEM (+96%). Bitcoin dominance decreased slightly and ended the month at 62.4%.

Chart 2 - Top 25 assets by market cap performance (2020-11)

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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.

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