by Marco Rossi
Two weeks ago, a twisted trend of the market led us to rethink the investment possibilities that the market — and the cryptomarket in particular — can offer.
The parallelism between the precious metal market and the cryptomarket led us to anticipate the refound importance of altcoins in the market and their relations with the dominance of Bitcoin.
Whoever is interested in cryptos, in fact, knows that BTC — and its ‘family’ — makes up the largest share of the total capitalization of the market. This is not sustainable and BTC needs to go below 50% if we are to see the creation of a real market of reference.
This might take more time than we expect, besides the huge PR effort other altcoins have to implement to advertize their assets against the BTC.
However, things started to change when the cryptomarket showed signs of a lower spread between altcoins and BTC following a short recession in the BTC vs. USD rate — as this chart shows us:
The recession of BTC gave space for other coins to gain territory in the market, not in terms of capitalization, but in their relation with BTC itself:
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.
Well, this week the market matched the expectations we reported two weeks ago in our weekly report. We only need to give a look at these charts:
First off, ETH gave its best in these two weeks: the ETH vs. BTC rate gives an extremely optimistic perspective on their relations. After a pike at midday on Sep 19 it seems to have reached a plateau and to keep the level in between 0.021000 and 0.021500 — starting from as low as roughly 0.018300.
LTC also had a great performance, having increased from as low as roughly 0.0800 to a current 0.0730 and passing through a high of roughly 0.07800. However, a good entry of our analysis is another coin we still haven’t talked about:
DASH also showed a good performance these two weeks. Although a high at midday on Sep 19 which rapidly moved back to a virtual plateau, the spread between the coin and BTC has increased until a stable point between 0.09250 and 0.09750, currently lying around 0.09500.
The cryptomarket is reserving some great surprises these weeks and it doesn’t seem to stop. The only way to deal with it is accepting that such a fast-paced market will not unfold its trends as easy as one would like it to.
The infinity of features given by the systemic nature of the cryptomarket can only be studied in depth and tried out.
In the next few months of this year’s last quarter we might be — finally — looking at the start of the altcoin season.