The crypto market continues with its bullish momentum in 2021, marking its fourth consecutive month of positive returns in January. During the first ten days, the crypto market steadily appreciated, gaining 46.3% in the process. This was followed by a swift one-day correction of -21.7%, which resulted in a loss of the majority of profits gained during the first ten days. Nevertheless, the crypto market quickly rebounded and managed to end the month with a positive monthly performance of 48.21%.

In total, 24 of the top 25 assets posted gains in January. The top three performers were Dogecoin (+695%), AAVE (+243%), and Uniswap (+242%), while the only asset that ended the month with a negative monthly performance was Monero (-12%). On 3 January, Bitcoin’s dominance marked its highest level of this latest crypto bull run at 72.7%. After that, Bitcoin’s dominance gradually declined and ended the month at 62.2%.

The Solidum Crypto Quant strategy underperformed the market in January. The portfolio recorded a positive monthly performance of 25.20%, whereas, as mentioned above, the market posted a 48.21% gain during January. The MVIS Index (Proxy for the »Market«) includes several assets (i.e., Dogecoin, etc.) which saw abnormal returns during January; however these assets are fundamentally unsuitable for the Solidum Crypto Quant portfolio. Therefore, a more relevant comparison for January’s performance is the portfolio’s monthly performance vs. our peers. The BarcleyHedge Cryptocurrency Traders Index (BHCTI), which represents our competition, gained 26.44% during the previous month, which is on par with the performance of the Solidum Crypto Quant Strategy in January.

Chart 1 - Solidum Crypto Quant Performance (2021-01)

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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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