The Bitcoin Gap Widens
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 156;
Bitcoin remains in an uptrend; it is looking good.
Bitcoin ByteTrend Score 5 of 5
But the dollar has fallen by 10% this year, and that has weighed on the market. The same chart measured in a global currency basket appears weaker, with a ByteTrend Score of 4 rather than 5.
Bitcoin ByteTrend Score 4 of 5 in Non-Dollar terms
But however you look at it, Bitcoin is stronger than crypto, and by a wide margin. In ten years, Bitcoin has beaten the MVDA 100, which included Bitcoin as its largest constituent, by 35%. Consider that Bitcoin’s low point was in late 2017 when, although the price was $19,000+, it had underperformed the crypto sector. Since that time, Bitcoin has been over three times stronger, outperforming the pack by 15% per annum. That’s a huge gap.
Bitcoin and MVDA
Given that we have recently started a new rally in the sector, there is a chance that altcoins fight back. To get a more top-down view, we look to the ByteTrend Crypto Average (BCA), which measures the average daily price move of the top 100 crypto tokens in USD, highlighting the outperformers (5-star trends) and underperformers (0-star trends). The current leaders, when measured in BCA, are shown. This week, Ali will shine a light on his favourites.
