Perhaps it’s just another sign of a maturing market, but we haven’t seen a lot of that familiar whipsaw action in crypto lately.
Indeed, after months of high volatility — first to the upside, then to the downside — intraday price movements have been more subdued in the past couple weeks.
Underneath the surface, however, we see crypto assets establishing a solid base for a potentially explosive rally as we head into the final quarter of 2020.
So, that’s the context for crypto-index performance this week.
The Weiss 50 Crypto Index (W50), the broadest measure of the industry, closed the seven-day trading week ended Thursday Sept. 17, with a 2.73% gain. As the chart below shows, it was basically a “sideways” week ...
Here’s where it gets interesting.
Stripping out Bitcoin (BTC, Tech/Adoption Grade “A-”) reveals a slightly more bearish week for the altcoins. The Weiss 50 Ex-BTC Crypto Index (W50X) was down 0.57%. The chart below shows a clear bearish biased compared to the W50 ...
This tells us that Bitcoin held down the fort last week, so to speak, and that altcoins were clearly weaker in the past seven days.
Splitting the industry by market capitalization confirms this fact.
The Weiss Large Cap Crypto Index (WLC) — which is dominated by Bitcoin — moved up 5.34% on the week. Note also that, despite some ups and downs, this index spent most of the week heading higher ...
The Weiss Mid-Cap Crypto Index (WMC) was down 1.49%. Compared to the WLC, the WMC was clearly weaker, as the chart below is clearly points downward ...
Finally, the Weiss Small-Cap Crypto Index (WSC) was the weakest of all three, shedding 9.11% for the trading week ended Thursday. Note also how the chart below is the weakest of all the subindexes ...
The takeaway this week is that, while we saw Bitcoin move higher, the altcoins had a hard time following its lead. This is in sharp contrast to the past couple months, when we generally saw the exact opposite: Altcoins were heading higher, while Bitcoin was struggling to catch up.
I’ve often noted on these reports how no crypto bull market is sustainable without Bitcoin leading the way, at least in the early stages.
As the most recognizable name in the world of crypto, Bitcoin remains the benchmark for outside investor interest in the asset class.
And it’s only when we see Bitcoin outperform the rest of the markets to the upside that we can say that new money is moving into the crypto space — a necessary pre-requisite for a long-term bull market.
I hasten to add, though, that what we’ve seen in this “reversal of fortune” is a one-off, for now. It will be interesting to see whether Bitcoin can continue to outperform its altcoin progeny over the next few weeks.
Weiss Ratings does not accept any form of compensation from creators, issuers or sponsors of cryptocurrencies. Nor are the Weiss Cryptocurrency Ratings intended to endorse or promote an investment in any specific cryptocurrency. Cryptocurrencies carry a high degree of risk. The SEC, CFTC and other regulators have expressed concerns with the volatility of the market and the actions of sponsors of specific cryptocurrencies. Be sure to review their official consumer alerts such as the public statement on cryptocurrencies by the SEC.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.