During the first half of April, major crypto assets such as BTC, ETH, ADA, DOGE, DOT and others hit their all-time highs before correcting in the second half of the month. The market sell-off caused a record-breaking $10 Billion futures positions being liquidated on 17 April.

As is usual with major corrections, a swift recovery followed, which stabilized Bitcoin above the $56,000 price level. Throughout the month, BTC’s dominance was gradually diminishing. It started the month at 56.74% and ended it at a 3-year low of 48.03%. The shift of the market dominance indicates that market participants are favoring altcoins over Bitcoin in the current phase of the market cycle.

On 21 April, we reallocated our Bitcoin position to altcoins, which greatly contributed to our monthly performance in April. Consequently, the Solidum Crypto Quant Strategy outperformed the market in the previous month. The market netted a monthly gain of +10.02%, whereas the Solidum Crypto Quant Strategy ended the month with a return of +19.03%. By the end of April, the portfolio was fully invested in the crypto market, with the largest three weighted holdings in the portfolio being Polygon, PancakeSwap and 1INCH.

Chart 1 - Solidum Crypto Quant Performance (2021-04)

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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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