According to the Eurekahedge Crypto-Currency Hedge Fund Index, Bitcoin fell 7% in November. However, hedge funds that have a wider portfolio of cryptocurrencies saw a 2% drop for the month.
Bloomberg reports that the outperformance could indicate that altcoins may offer better returns than Bitcoin, which is currently down 29% from its peak.
They used Ethereum as an example, and said that Bitcoin’s year to date performance couldn’t be compared with Ethereum.
Bitcoin vs Altcoins
Bitcoin’s January 1 price of $29K had seen a 69% increase. Ethereum has risen 445% from the New Year’s Day when it traded at $740.
You can also compare the total market capitalization for all crypto assets, which has outperformed Bitcoin with a gain just over 200%. Bloomberg reported that crypto hedge funds were also affected by the same phenomenon.
The data supports the same theme in crypto hedge funds. The Eurekahedge Crypto-Currency Hedge Fund Index, which is made up 18 equally weighted members, has increased 170% in the year to November.
With a gain of 200%, the Eurekahedge fund did even better in 2020. Bitcoin was the king of 2020, with a gain in the region of 300%.
These gains are small compared to some of the altcoins that have literally gone bonkers in 2021. The market capitalization of Solana’s SOL token, which is now the fifth largest cryptocurrency, has risen to 11,544%.
Terra’s LUNA token has risen 9,438% this year. Avalanche’s AVAX has pumped 3,171% while Polygon’s MATIC is at a record 11,819% since January 1.
Crypto Market Outlook
After a fortnight’s losses, crypto markets are showing signs of improvement. According to CoinGecko, the total market cap has increased 3.6% to $2.37 trillion.
Bitcoin reached an intraday high $49,421 after the FED decided to accelerate the tapering of asset purchase. BTC has begun to consolidate in the $48K area, just above the 200-day moving mean.
After a gain of 4.7% in the last 24 hours, Ethereum has reclaimed $4,000 SOL also performed well with a 10% boost to $177 and AVAX rising 17% to trade for $105.
Marla Brooks – Financial Analysis
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