by Marco Rossi
The major trend of long treasuries and short equities is temporarily broken.
In the last report we have seen that the crypto-market knew some jittery days this last week. However, it is not just cryptocurrencies who have surprised us: the traditional market also reserved us quite a few emotions.
Macro trends in the market can be seen as moving parts which influence one another, bumping into each other and resonating their consequences.
As we saw last week, silver outperformed gold, for the first time after a rather long time.
For the sake of this report, let’s consider gold as a long-term trend and silver as a short equity — since gold is proven to be stronger, while silver can be treated as a short-investment equity for a higher return on the investment.
In plain terms, it is more likely for silver to decline and, thus, is more secure to have a shorter market exposure in one’s investment for a — projected — declining asset.
Gold, on the other hand, has a long history of outperforming silver and other precious materials, presenting itself as a valuable candidate for a long-term investment.
Now, let’s compare it to the crypto-market. As gold, BTC has proven to be a much stronger asset in the crypto-market than any other coins. It even took a step further and almost monopolized the entire market cap (let us remember that BTC and its main forks hold more than 90% of the total cap).
However, BTC witnessed a recession (against the USD) in these last few days, opening the door for some new opportunities for the other cryptos.
In particular, it’s been the spread between the coins and BTC to have caught the attention of analysts this week, showing a good performance in the most traded cryptos — ETH, LTC, and XRP — against the BTC, as we saw in a previous report.
Seeing it in short terms, this means that can get the best out of the return on the investment buying these latter coins using BTC, given also that the USD index is showing an upward trend consistent in time.
The market manifested its potential to change this week, giving us new prospects on how to improve our return on investments and shuffle the cards to play a new match.
It takes slow moves and a timely and concise fashion to hit that right life-changing investment. But that is our aim: unfolding the market trends to improve the investing performance.