Since January 14, subsequent to a minor correction, the crypto market has added $6 billion to its valuation as the Bitcoin price maintained stability.

While many cryptocurrencies, especially low market cap tokens fell substantially earlier this week, Bitcoin remained in a tight range between $3,400 to $3,600.

Image credit: TradingView

How Bitcoin is Able to Retain Dominance

The abrupt decline in the valuation of the crypto market on Monday was largely triggered by the weakness in the short-term price trend of small digital assets.

In the last four days, Bitcoin has barely moved at all, demonstrating a high level of resistance below the $3,500 mark.

Luke Martin, a cryptocurrency technical analyst, said that the breakout of the Bitcoin price above $3,700 could allow the dominant cryptocurrency to record a promising short-term price movement in the days to come.

“BTC battling to reclaim the range all week. If price can get back above $3,700 I’m more excited about alt positive momentum continuing,” Martin said.

Bitcoin remains as the only major cryptocurrency to be able to sustain a certain level of stability in a period of extreme volatility and uncertainty.

Reports suggest that the fundamentals of the asset have allowed it to outperform most crypto assets in the global market.

In many areas including hash rate, developer activity, transaction volume, and trading volume, Bitcoin has easily surpassed its competitors throughout the past 12 months.

As the world’s first cryptocurrency, bitcoin remains the most prominent and used decentralized currency of them all.

A recent report released by Charlie Humberstone at a cryptocurrency market data provider CryptoCompare revealed that Bitcoin-related articles accounted for 42 percent of all cryptocurrency-related coverage.

The analyst wrote:

As always Bitcoin kept chugging along, gaining a larger share of the news coverage from the growing number of ‘bear market casualties’. Bitcoin-related articles reached a peak of 42% by the end of the year. Blockchain articles too maintained their prominence — peaking at nearly 20% of articles in May.

During a bear market, the valuation of many cryptocurrencies and blockchain projects drops substantially. While the decline in valuation makes it cheaper for new companies entering the cryptocurrency market to acqui-hire, it also reduces the costs that incur when initiating various types of attacks on blockchain networks.

Last week, for instance, Ethereum Classic suffered a 51 percent attack which led to the loss of over $1 million.

Fundamentals are Crucial

Throughout the months to come, until the cryptocurrency market recovers, Bitcoin is expected to outperform most crypto assets in the space due to its strong fundamentals.

According to ATHCoinIndex, Bitcoin has outperformed the top ten largest cryptocurrencies in the global market by significant margins since the start of a bear market in early 2018.

The cryptocurrency market is generally expected to demonstrate a high level of volatility in the days to come. But, until the market establishes a proper bottom, analysts expect low market cap tokens and low volume cryptocurrencies to extend their losses against both Bitcoin and the U.S. dollar.

This post credited to CCN. Image source: CCN

Tuesday, Jan. 15 — following a brief period of recovery yesterday, all of the top 20 cryptocurrencies by market capitalization are falling again. The only exception to this are two stablecoins Tether (USDT) and USD Coin (USDC), which are currently in the green.

Market visualization from Coin360

As of press time, Bitcoin (BTC) is down 2.34 percent on the day, to trade at $3,615. The leading cryptocurrency started the day above the psychological threshold of $3,700, while on the weekly chart the highest price point was registered on Jan. 9 at $4,107.

Bitcoin 7-day price chart. Source: Cointelegraph Price Index

The second largest cryptocurrency by market cap, Ripple (XRP) has lost almost 3 percent of its value over the last 24 hours, currently trading at around $0.32. XRP did not experience significant price fluctuations today, but it is significantly down from the intraweek high of $0.38 seen on Jan. 9.

Ripple 7-day price chart. Source: Cointelegraph Price Index

Ethereum (ETH) — which is currently ranked the third largest crypto by market cap — is suffering a slump, having lost around 7.5 percent over the last 24 hours. At press time, the altcoin is trading at around $119.

As Cointelegraph reported earlier, Ethereum’s much-anticipated Constantinople upgrade has been delayed until at least the next week, following the discovery of a critical security vulnerability that it could unexpectedly introduce to the network.

Ethereum 7-day price chart. Source: Cointelegraph Price Index

All of the other top 20 cryptocurrencies are also firmly in the red, displaying dips ranging from two to over 7 percent. The sole exception are stablecoins USDT and USDC, which are up by 0.06 and 0.45 percent respectively, according to CoinMarketCap data.

The total crypto market capitalization is around $120.5 billion at press time, down from its intra-week high of $138.6 billion.

Total market capitalization 7-day chart. Source: CoinMarketCap

A Jan. 14 report by research firm Diar has shown that cryptocurrency exchanges have closed 2018 with “record transacting volumes.” Both the number of trades and the trade volume have purportedly significantly increased on major crypto exchanges in 2018, compared to 2017 figures.

This post credited to Cointelegraph. Image source: Cointelegraph

LedgerX thinks cryptocurrency traders should be able to assess bitcoin’s volatility. And, taking a leaf out of the stock market’s book, the derivatives trading platform has built an index to track this benchmark.

The company announced Monday that it was launching the LedgerX Volatility Index (LXVX), which will track the expected volatility for bitcoin. The firm will draw data for the index from its regulated bitcoin options, which various institutions have been trading over the past year.

Juthica Chou, LedgerX’s president and chief risk officer, told CoinDesk that the LXVX is similar to the Cboe Volatility Index (VIX), a popular measure of the stock market’s anticipated volatility.

“[A volatility index] tells you the expected certainty that the market is forecasting … That’s what it tells you with respect to any market,” she explained. 

Or, put another way, the LXVX can be described as “a bitcoin fear index,” much like the VIX is referred to as the stock market fear index, she said.

Chou, who previously worked at Goldman Sachs as a volatility trader, said that the VIX was an important benchmark, and its usefulness is why LedgerX decided to build one for bitcoin.

It can allow traders and investors to monitor risk as they manage their businesses, she said.

As an example, she cited bitcoin’s volatility near the end of 2018 compared to the beginning of this year, saying:

“If you look basically since the start of the year, the LXVX is down about 20 percent so it’s down to about 68, and … this is still approximately three times the volatility of the stock market but it’s very telling in the bitcoin space because it shows that there is less of the fear and uncertainty than what existed [in] December.”

At present, the index is not a tradeable product, though building such a product is a goal further down the line. LedgerX’s institutional clients have already been able to track the benchmark for at least a few months, and it is now publicly available through LedgerX’s website.

Thriving in winter

Separately, LedgerX announced it had cleared over $500 million in bitcoin derivatives since its inception in October 2017, across more than 50,000 contracts over “a wide range of strikes,” Chou said, referring to the price at which an option may be exercised.

While other startups in the crypto space have suffered from the prolonged crypto bear market, it has actually been more beneficial for LedgerX, as it leads to greater trading activity.

“We saw, for example, a lot of put options trading in December and the end of November while the broader market was selling off,” she said. “Now that we’re bouncing back, we’re seeing a lot more call options.”

This post credited to Coindesk. Image source: Cryptoninjas

Bitcoin has failed to stabilize above $3,600, which is leading the crypto markets to now face new levels of support. Today’s downwards move has led many altcoins to plunge 6% or more, and they are showing few signs of major buying support near their current price levels.

Analysts have mixed opinions regarding exactly where the markets will find support, but there is a general consensus that Bitcoin will find some buying pressure in the low-$3,000 region, which, if this level is to be touched, could result in a bounce.

Bitcoin Drops to Bottom of Trading Range

Currently, Bitcoin is trading down approximately 3% at its current price of $3,560, which is at the bottom of the trading range that Bitcoin formed earlier this week when it failed to stabilize above $4,000 for an extended period of time.

Mati Greenspan, the senior market analyst at eToro, discussed this range in a market update from last week, saying:

“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200.”

Bitcoin does appear to be respecting the bottom of this range as support so far, but the current lack of trading volume likely signals that further losses are imminent.

Crypto Markets Likely to Drop Further Before Finding Strong Support

In a recent tweet, Trading Room noted that Bitcoin’s next key support level exists between $3,292 and $3,396, which is approximately 5-7% lower than its current prices. If it does touch these prices, it will mark a nearly 10% drop from where Bitcoin began 2019.

They further noted that multiple altcoins are still above their support levels, meaning that they will likely drop further before stabilizing or possibly bouncing.

“ALTs market back to free fall. Waiting for majors to stabilize. Let’s see their reaction against major support before entering ALTs,” Trading Room cautioned, hinting that altcoins will face further losses in the near-future.

Josh Rager, a popular cryptocurrency analyst on Twitter, echoed a similar sentiment, noting that Bitcoin will likely find significant buying pressure at, or slightly below, $3,000. He further noted that the markets will likely range sideways for a while before dropping further.

“As the volume continues to slowly descend Bitcoin could see more sideways ranging… This could last for days or weeks until a decrease in buyers, currently holding up the market, at these levels… Nice support below $3,000 with lots of buyers waiting there,” Rager explained.

It is plausible that the crypto markets will find greater direction as their trading volume increases when the new week begins.

This post credited to News BTC. Image source: News BTC

In the last 4 hours, $9 billion were wiped out of the crypto market as Ethereum and Bitcoin Cash recorded a 14 percent drop respectively against the U.S. dollar.

The Bitcoin price dropped to $3,750, back to last week’s levels following a promising corrective rally on January 6 when BTC increased from $3,753 to $4,090.

Ethereum and Bitcoin Cash Remain as Worst Performers on the Day

Throughout the past two weeks, the Ethereum price nearly doubled from $85 to $160 in anticipation of the scheduled Constantinople hard fork that is set to be executed between January 14 to 18.

The volume of Ethereum spiked as the trading activity of the second most valuable cryptocurrency in the global market surged on ever major digital asset exchange.

However, large short-term gains leave assets vulnerable to large short-term corrections and in the last several hours, the price of ETH dropped by 14.9 percent from $154 to $131 in one of its biggest single-day drops in the past 12 months.

As sell pressure on the cryptocurrency market intensified and bears initiated a sell-off of digital assets, cryptocurrencies that demonstrated decent gains throughout December and January in the likes of Ethereum, Bitcoin Cash, and Litecoin portrayed the largest losses on the day.

As early as January 7, traders including The Crypto Dog suggested that the technical indicators of ETH suggest a short-term downward movement.

The trader said on Monday:

Maybe I’m just seeing what I want to see, but this chart is screaming to me ‘last chance to short ETH.’ It makes sense to see some bounce here, given this level on the ratio, so I hesitate to say this is a great entry. …and of course, I’m just thinking out loud, not trying to urge anyone to FOMO into a trade. I shorted ETH at $156 and sitting relatively comfy here.

Although both major crypto assets and small market cap tokens showed signs of short-term recovery in the last two months, several analysts suggested that without a breakout above key resistance levels, it is difficult to declare the establishment of a proper bottom in the cryptocurrency market.

In late December, Mark Dow, a trader who shorted Bitcoin (BTC) from its all-time high at $19,500 all the way down to $3,500, said that if Bitcoin fails to recover beyond $6,000  in the short-term, the market is in trouble.

“Still a beautiful chart. If bitcoin can’t bounce to at least $5k – $6k soon, it’s a really bad sign for the cyberbulls. And if it breaks down thru the yellow line at any point, even the HODLers need to GTFO,” Dow said at the time.

Trend Hasn’t Changed

Essentially, Dow suggested that the trend in the cryptocurrency market has not changed and crypto winter is still in full effect.

If cryptocurrencies continue to demonstrate a high level of volatility in a low price range, at least in the foreseeable future, a major trend reversal is highly unlikely.

Click here for a real-time bitcoin price chart or here to review our latest crypto market coverage.

Featured Image from Shutterstock. Charts from TradingView.

This post credited to CCN

Bitcoin Is Infantile, But It’s Revolutionary Nonetheless

Jeff Berwick, the so-called Dollar Vigilante (a skeptic of the U.S. fiat system), recently sat down with BlockTV, an up-and-coming crypto-centric media outlet, to discuss his optimistic outlook on Bitcoin (BTC). It should come as no surprise that Berwick was bullish on decentralized cryptocurrencies, especially considering his seeming distaste for government-issued currency, but his comments held credence nonetheless.

Embedded video

BLOCKTV@BLOCKTVnews

@DollarVigilante Jeff Berwick says we have nearly reached a #crypto bottom and predicts a 2019 explosion. #bitcoinsummit #bitcoin2411:42 PM – Jan 9, 2019See BLOCKTV’s other TweetsTwitter Ads info and privacy

In a shortened version of BlockTV’s interview, Berwick first noted that once Bitcoin, long touted as a way for consumers to “be their own bank,” is well-known as a non-intermediated currency (rather than an asset for criminals), it will likely gain revolutionary-level traction. He added that the fact that you can essentially store BTC (private keys) in your head, even without governmental or bank control, may only add to this paradigm shift. Berwick explained:

Once even some people understand [Bitcoin’s potential], I couldn’t even possibly imagine where this movement could go.

However, the fiat skeptic claimed that at its core, cryptocurrencies are still in a quite infantile state, in spite of the recent ten year anniversary of Bitcoin’s first block. Keeping this in mind, Berwick noted that while many consumers have cast cryptocurrencies off, especially following the boom and bust cycle of 2017/2018, that was likely just a small blip in the grand scheme of things.

The decentralist isn’t the only industry insider to believe that BTC at $20,000 was just the start of something great. Per previous reports from Ethereum World News, Angel Versetti, the CEO of blockchain startup Ambrosus, noted that the real cryptocurrency bubble is when this asset class reaches an aggregate valuation of $15 trillion to $20 trillion.

Berwick, like Versetti, hinted at the sentiment that this technological development is game-changing, and is still undervalued from a long-term perspective. The BlockTV interviewee, who claims that he will be able to survive and thrive “during and after the Dollar collapse,” noted that “nothing can stop a good idea.” Even more so for an idea that keeps “currency out of the hands of governments and central banks.”

And this idea has already started to catch on. Per our previous reports, TIME Magazine lauded cryptocurrencies, BTC specifically, as a way to allow ‘average Joes to get out of the vises imposed by authoritarianism-centric entities.

Berwick noted that he expects for this thematic development to continue in the future, especially as governments continue to struggle to keep their jurisdictions in-check.

Institutional Money To Flow Into Crypto

Dollar Vigilante went on to touch on his short-term forecasts for this market, which has been beaten to hell and back in recent months. Berwick noted that while he cannot be 100% sure of about predicting this industry’s developments for 2019, he expects that prices have hit (or are nearing) the bottom by and large.

Yet, in spite of his bottom call, he noted that cryptocurrencies could remain in a lull until 2019’s end, echoing analysis done by other analysts, including Filb Filb and Murad Mahmudov. However, Berwick noted that with the arrival of institutional money (which he isn’t necessarily a fan of), via platforms like Bakkt, a potential Bitcoin ETF, and Nasdaq’s proposed futures, will “change the game completely.” He explained that as soon as institutional money starts flowing, cryptocurrencies prices will explode en bloc, as there are presumed trillions waiting on the sidelines.

He added that with equity markets on the verge of “the biggest collapse ever,” as predicted by a number of decentralists, cryptocurrencies will likely outperform.

This post credited to Ethereum World News.

Image source: Ethereum World News

Bakkt, a digital asset platform created by the Intercontinental Exchange, has completed its first funding round, securing an investment from Li Ka-shing, a renowned Hong Kong billionaire and one of the wealthiest men on the planet.

Li Ka-Shing Leads Investment Round For Bakkt

Bakkt, a cryptocurrency platform backed by the Intercontinental Exchange (ICE) had completed its Series A funding round on Dec. 31, 2018. Bakkt signed off more than $180 million raised, entering the new year with a bang.

The parent company of the New York Stock Exchange (NYSE) managed to attract heavyweight tech and venture capital investors, including Boston Consulting Group, Microsoft’s venture capital arm M12, and Naspers’ fintech company PayU, Bakkt’s Medium post revealed.

According to EJ Insight, one of the most notable investors in Bakkt was Horizons Ventures, a Hong Kong venture capital firm founded by Li Ka-shing. Ka-shing, who is the 23rd richest man in the world according to Forbes; he has been accumulating an assorted portfolio of tech startups over the last decade.

This, however, isn’t the first time Ka-shing has ventured into cryptocurrencies. In 2013, Horizons Ventures invested in BitPay, a bitcoin payment processing software, and in 2016 in Blockstream, a blockchain technology provider.

Investors Recognize Bakkt’s Potential

Bakkt’s plan to launch a digital asset platform that will host institutional-grade futures contracts for bitcoin and other cryptos seems to have resonated well with investors. Li Ka-Shing’s Horizons Ventures was joined by CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Pantera Capital, and Protocol Ventures, Bakkt’s CEO, Kelly Loeffler said.

Backing by some of the biggest names among institutional investors could help the cryptocurrency market gain much-needed recognition. Institutional backing could also reduce the volatility that has plagued the crypto market for years.

Physically delivered crypto futures will set Bakkt apart from the competition, as rival exchanges CME and CBOE settle their contracts in fiat. Bakkt’s contracts will also be warehoused and cleared through ICE’s US-based futures exchange and clearinghouse.

Many small time crypto traders are looking forward to the launch of Bakkt’s contracts on Jan. 24, 2019, as the initial launch was set for Nov. 2018. The company blamed regulatory setbacks for the delay, with Loeffler sayingBakkt has filed an application with the U.S. Commodity Futures Trading Commission and was waiting for approval.

This post credited to Cryptoslate. Image source: Cryptoslate

Monday, Jan. 7 — most of the top 20 cryptocurrencies are seeing slight to generous gains in the 24 hours to press time. Bitcoin’s (BTC) price has surpassed the $4,000 mark again, according to Coin360 data.

Market visualization

Market visualization from Coin360

At press time, Bitcoin is up nearly 5 percent on the day, trading at around $4,025. Looking at its weekly chart, the current price is above the intra-week high of $3,946 — registered on Jan. 2 — and is also notably higher than $3,841, which is the value of one bitcoin last Monday.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap

Ethereum (ETH) remains the second-largest cryptocurrency by market cap. The divide between ETH and Ripple (XRP) — currently the third-largest crypto by market cap — is decreasing. Ethereum’s market cap is currently $15.9 billion, while Ripple is sitting at $15 billion.

Ethereum has seen its value decrease by about half of a percent over the last 24 hours. At press time, ETH is trading at around $153, having started the day around $154. On the weekly chart, Ethereum’s current value is significantly higher than $137, the price at which the coin started the week.

Ethereum 7-day chart

Ethereum 7-day chart. Source: CoinMarketCap

Ripple (XRP) is up over three percent on the day, trading at around $0.367 at press time. On the weekly chart, the current price is higher than $0.361, the price at which XRP started the week — but also lower than $0.378, the midweek high reported on Jan. 2.

Ripple 7-day price chart

Ripple 7-day price chart. Source: CoinMarketCap

Among the top 20 cryptocurrencies, the ones experiencing the most notable price action are NEO, up over 10 percent, Stellar, up over 6 percent, and ZCash, up about 4.5 percent.

The combined market capitalization of all cryptocurrencies — currently equivalent to about $136.1 billion — is higher than $128.8, the value it reported one week ago. The current value is slightly lower than the intra-week high of $138.7 reached on Jan. 6.

Total crypto market cap 7-day chart

Total crypto market cap 7-day chart. Source: CoinMarketCap

As Cointelegraph reported earlier today, a new bipartisan bill to exempt cryptocurrencies from some securities laws is currently being reviewed by the Colorado Senate.

Recently, news broke that several United States federal agencies reportedly raided the office of a Michigan-based science and tech center last month during a crypto-related investigation. The center’s founder was allegedly “commercially trading in crypto-currency (sic) without the proper authorization.”

This post credited to cointelegraph Image source: Cointelegraph

Bitcoin, which many investors and traders are hoping is going to begin 2019 with a bang, has leaped sharply over the last 24 hours, adding some 6% and climbing above the psychological $4,000 mark for the first time this year.

The bitcoin price, which has been languishing at around $3,750 for the last couple of weeks, moved sharply higher after a surge in bitcoin trading volume that sent the original cryptocurrency’s market capitalization up over $70 billion, according to CoinMarketCap data.

Bitcoin, despite being the most widely traded cryptocurrency with trading volume into the billions of dollars every day, still struggles with wild price swings due to so-called market whales moving large volumes of bitcoin at above or below the current market value.

Just ahead of the bitcoin market spike last night a bitcoin whale moved some 2,500 bitcoin (worth just under $10 million) on the Luxembourg-based Bitstamp exchange, according to the Twitter price tracking bot Whale Alert. The move pushed the daily bitcoin volume up to over $5 billion, a 2019 high.

The jump in the bitcoin price sent the wider cryptocurrency market higher, with ethereum gaining just over 2% over the last 24 hours, while ripple (XRP) added almost 5%.

“A surge of 6.5% in 30 minutes is not entirely uncommon for bitcoin and could very well be caused by a single large order on an exchange or even by a lack of liquidity in the market,” said Mati Greenspan, senior market analyst at brokerage firm eToro. “What’s interesting about this move is that it did bring us above the $4,000 level and so far is holding onto the gains.”

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Bitcoin isn’t the only major cryptocurrency to see large holders make big moves lately. Since Friday, more than $273 million in ethereum has been transferred in 21 separate transactions, with 10 of the largest transactions from the crypto exchange Bitfinex to unknown wallets, it was reported today by trade news site the Daily Hodl.

The largest ethereum move was worth almost $19 million.

Bitcoin, bitcoin price, chart

The bitcoin price jumped following a so-called bitcoin whale moving a large volume of the cryptocurrency.COINDESK

Meanwhile, the bitcoin price is being supported by news that CoinFlex, originally a part of the U.K. bitcoin exchange Coinfloor, has announced plans to offer physical bitcoin futures to Asian investors next month.

The move by CoinFlex, first reported by the Bloomberg newswire, will put it in direct competition with the New York Stock Exchange and Eris Exchange, both expected to be offering similar contracts soon.

The move to physical bitcoin futures is seen as important to help combat manipulation in the market, with some claiming cash-settled contracts leave unregulated bitcoin and cryptocurrency markets open to abuse.

The chief executive of CoinFlex and co-founder of CoinFloor, Mark Lamb, told Bloomberg CoinFlex will offer futures contracts for bitcoin, bitcoin cash and ethereum that can be leveraged up to 20 times.

“Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that’s holding back that growth is the lack of physical delivery,” Lamb said. “Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”

bitcoin, bitcoin price, chart

The bitcoin price jumped pulled up the wider cryptocurrency market.COINDESK

Elsewhere, bitcoin SV, a fork of the bitcoin cash cryptocurrency, looks close to be falling out of the cryptocurrency top 10 by market capitalization as the likes of tron, cardano, stellar, and litecoin make rapid gains.

Litecoin is up by some 10% over the last 24 hour trading period, leading the field.

Bitcoin SV has struggled with waning volumes and lackluster adoption since its battle with bitcoin ABC for control of the bitcoin cash network last year.

This post credited to forbes Image source: Forbes

Ethereum, TRON, and Iota have outperformed most other major cryptocurrencies by the 30-day Sharpe ratio, a measure developed by Nobel laureate William F. Sharpeto evaluate the return of an investment relative to its risk. Meanwhile, Bitcoin’s performance was dismal.

Within the last 30 days, the market has experienced a robust recovery after bottoming out in December. One indicator, the Sharpe ratio, calculates the performance of an investment adjusted for the risk-free interest rate per unit of volatility.

To calculate the Sharpe ratio, first, the risk-free rate is typically determined using U.S. Treasury Bills as a zero-risk benchmark. Then, over a given period of time, the rate of return of an investment is calculated. The risk-free rate is subtracted from the rate of return of the investment to produce the amount of excess return. Finally, the excess return is divided by the standard deviation (volatility) to produce the Sharpe ratio.

(Average Cryptocurrency Return – Risk-Free Rate) / Cryptocurrency Standard Deviation

The greater the returns over the risk-free return, the higher the Sharpe ratio. More consistent returns over time also produce a higher Sharpe ratio. Meanwhile, a negative ratio indicates that the return on investment was lower than the risk-free interest rate in a given period.

For comparison, U.S. Treasury Bills have a Sharpe ratio of zero. The S&P 500, an index of stocks from the largest 500 U.S. companies, had a rolling 12-month Sharpe ratio of approximately 1.0 over the last 25 years.

Chart courtesy of 6 Meridian

Understandably, cryptocurrency has a very low—and sometimes even negative—Sharpe ratio because of its extreme volatility. The chart below shows the lifetime volatility of bitcoin’s daily rate of return relative to the S&P 500:

Original analysis by CryptoSlate. Scrutinize our data on GitHub

The chart emphasizes the extreme levels of volatility experienced by bitcoin, even when compared to a moderately volatile index, such as the S&P 500.

On Jan. 4th, LongHash calculated the 30-day Sharpe ratio for various cryptocurrencies:

Chart courtesy of LongHash

Ethereum and Iota generated Sharpe ratios of 0.124 and 0.127, respectively. TRON lead the way with a ratio of 0.169. Over the last month, Bitcoin had a dismal ratio of -0.0722, indicating that U.S. Treasury Bills outperformed the cryptocurrency in the last 30 days. These figures have little to no bearing on how the cryptocurrencies in question will perform in the following months.

Whether the Sharpe ratio has any relevance for evaluating the merits of a cryptocurrency is another matter entirely. The new asset class is new enough and volatile enough that the ratio may not provide any useful information—but we’ll let the analysts in our audience make the final decision.

This post credited to cryptoslate Image source: Cryptoslate