By looking at the market, measured by the MVIS CryptoCompare Digital Assets 25 Index (MVDA25), one could conclude that October was an uneventful month. The market mostly moved sideways, recording a slightly positive monthly performance of 4.3%. However, after taking a look at the performance of the top 25 crypto assets by market capitalization, one can see that it varied greatly. Ten assets ended the month in green, with the top three being Filecoin (+40%), Bitcoin (+28%), and Litecoin (+20%).

Bitcoin had a great month, and the capital continues to flow from altcoins into Bitcoin. By the end of the month, Bitcoin dominance stood at 63.7%, substantially higher than a month ago (58.0%).

The Solidum Bitcoin Momentum Strategy outperformed Bitcoin in the previous month. The strategy recorded a gain of 28.09%, whereas Bitcoin ended the month with a gain of 27.79%.

Chart 1 - SOBM Performance (2020-10)

With its increasing dominance and consistent positive performance during the past few weeks, we do believe Bitcoin has a strong uptrend momentum. We expect some midterm corrections, due to the overwhelming performance and hype; however, this does not change our long-term outlook, which remains positive.

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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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