The complete overview of the day's events on the (crypto) markets. Compactly summarized in the market commentary of the CVJ.CH editorial team.
With an impressive rally of +30% since mid-October, Bitcoin is at new highs for the year. The price rise has been driven in part by the expectation of a Bitcoin ETF and potential capital flows from financial giants such as BlackRock.
The interest of traditional investors can be confirmed. Crypto asset manager CoinShares recorded an inflow of USD 326 million into its products in October; the highest increase since July 2022. 90% of the inflows went into Bitcoin. The digital asset is thus clearly leading the crypto rally.
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Ether does not keep pace
The second-largest cryptocurrency by market capitalization, Ether, cannot keep up with the market leader. Since the long-awaited switch to Proof of Stake ("merge") in September 2022, Ether has been constantly losing ground to Bitcoin. The ratio between the two assets (ETH/BTC) recently reached an annual low of 0.051.
This development is not entirely unsurprising. Breaking news is often followed by a wave of selling ("sell the news") and the Ethereum merge turned out to be a prime example. Added to this is the ETF narrative, which currently only applies to Bitcoin. Once approved, however, the tide could turn. A spot Bitcoin ETF would open the door for similar products on Ether - possibly in the second half of 2024.
Altcoins record double-digit percentage increases
Unlike Ether, some alternative cryptocurrencies (altcoins) have started to catch up with Bitcoin. Four of the top 20 cryptocurrencies by market capitalization recorded double-digit price increases. Ripple (XRP) was the top performer of the week with +19.6%. It was followed by Solana (SOL) with +15.27%, Cardano (ADA) with +14.88% and Chainlink (LINK) with +10.82%. These four have also outperformed Bitcoin over the past 30 days. Capital seems to be gradually flowing into the smaller digital assets.
There was only one loser of the week: Bitcoin Cash (BCH). The fork of the original Bitcoin blockchain saw a significant rise in the summer of the year due to its listing on Hong Kong's first crypto exchange. In the last month, the cryptocurrency has given back some of its gains. Tron (TRX) +2.06%, the memecoins Shiba Inu (SHIB) +2.38% and Dogecoin (DOGE) +2.9% and Ether (ETH) +4.25% also underperformed.
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.