Bitcoin Vs. Altcoins: Recent ROI Comparison

hey everyone and thanks for jumping back into the cryptoverse today we're going to take a look at the recent Roi of the top 50 cryptocurrencies if you guys like the content make sure you subscribe to the channel give the video a thumbs up and check out into the crypto versus premium at into the cryptiverse.com let's go ahead and jump in so as you guys know I'm a big proponent of the Bitcoin dominance heading higher I think we are and we will continue to be in the phase of the devaluation of the altcoin market on their Bitcoin Pairs and also as you can see many of them on their USD pairs as well you're probably familiar with this altcoin season index indicator we have been saying for a long time we are heading into Bitcoin season that the Bitcoin dominance is going to go higher first it needs to break above 49 to 50 percent and then 60 should should come somewhat quickly um once that is is broken but you can see that we have in fact gone very deep here into Bitcoin season so much in fact that over the last 60 days Bitcoin has outperformed every other cryptocurrency that's in the top 50. okay now the top 50 is going to vary depending on what website you use for instance if you were to use coin market cap or coin gecko you would get slightly different results some of those reasons could be due to things like you know if they're using the fully diluted market cap or if they're not um and so on and so forth so for this chart the top 50 cryptocurrencies here are sourced from coin gecko what you'll notice over the last 60 days is that Bitcoin is in fact at the front of the pack right so out of all these cryptocurrencies this is what we continue to say you know why take on more risk for Less reward right and that's what I've said for a long time now I mean I mean really since the beginning of 2022 I said that the altcoin market is just simply going to bleed back to bitcoin for basically the next 18 months or so uh really Q3 of 22 23 has always been sort of the target um I mean Q3 of 2019 is what a lot of alts finally found their bottoms against Bitcoin in the cycle before us so why why so many different this time and so again I assume that the altcoin market is still in a devaluation process on their Bitcoin Pairs and also likely on their USD pairs as well now as Bitcoin over the last 60 days is up about 30 30.51 you'll note that actually a majority of the cryptocurrencies in the top 50 are negative over the last 60 days okay so you know when people ask about you know has something you know is it how's crypto holding up or you know has has crypto bottomed right you have to be more specific I mean a lot of these cryptocurrencies are not holding up very well and they are continuing to go down during a period where bitcoin's up 30 percent so what you're seeing here in general is is something that's actually going on in in tech stocks as well there's a a relative flight to safety now that doesn't mean that the safer assets can't go back down there's a good chance they probably will and I've said that before that I think Bitcoin will have one more scare uh later this year um early next year at the latest right before the having basically sometime before the having um where where that'll where that will or it will test people's resolve we had the same thing in 2015. we had the same thing in 2019 and 2020. I assume we'll have the same thing again right I just I I assume that these Cycles are are somewhat repetitive but be that as it may what you're what you're looking at here is a flight from lower liquidity assets to higher liquidity Assets in general now it's not a perfect thing but look at some of the top performers here right you have Bitcoin and number one at number three you have xrp number four is ethereum cardano's number five and B and B is number six now going over to coing gecko you'll note that Bitcoin is one ethereum's two B and B is four xrp is six and cardano is seven so what you're seeing is Bitcoins leading the pack because it's the Rel it's the blue chip right ethereum's up there as well but you also have BNB cardano and xrp that are doing better than a lot of the other ones and why is that it's because in my opinion it's because there's this flight away from lower liquidity assets to higher liquidity Assets in a in a correction scenario the lower liquidity assets would actually get hit a lot harder than the ones that have more liquidity when you have Corrections on bitcoin USD during the pre-halving year liquidity in the altcoin market is you know dries up quite substantially and so whenever a correction were to occur you would you would likely see all coins go down on on not only their USD pairs but also still on their Bitcoin pairs as well so when you think about what does it mean to be in Bitcoin season it doesn't mean that Bitcoin USD has to go up it doesn't mean that Bitcoin USD has to go down what it means is that no matter the direction of Bitcoin USD the dominant should go up over here in 2018 we had a period where Bitcoin USD Bitcoin was going up and Bitcoin is going down and during that entire period we were in Bitcoin season very similar thing in 2019 as well right Bitcoin was going up we were in Bitcoin season Bitcoin was going down we were still in Bitcoin season so don't lose sight of that great don't lose sight of that it the idea as always is that the dominance should go up no matter what if Bitcoin were to break up from here it's likely going to continue to lead the pack if it breaks down from here guess what there's a lot there's lower liquidity in the altcoin market now you might see a scenario where you know there's a knee-jerk reaction on the on the dominance and it and it gets a brief pullback if Bitcoin USD were to drop quickly but even if that were to happen after you give it a couple of days or so then you'll you'll likely see the altcoin market reacting kind into a much larger extent than Bitcoin so this this sort of analysis goes for basically the next several months if Bitcoin goes up it leads the market and the dominance goes higher if Bitcoin goes down the dominance should go higher and every time we get a pullback right I mean you know I get all sorts of uh uh comments right anytime the dominance pulls back but as far as I can tell it's just putting in higher lows right as far as I can tell and and I think it's it's it's building up to break out above 50 and and actually last cycle it was the the move from the for the move from 40 to 50 dominance was while Bitcoin went up the move from 50 to 60 dominance was while Bitcoin went down so we need to be aware that something like that could happen again um so so let's not lose sight of of some of the cyclical behavior that has happened in the past and and recognize that in in 2018 and 2019 we saw the dominance go up during the price rally by Bitcoin and it still went up when when the when when the top was in right when that local high was in we saw the dominance continue to go up for a couple more months or so um even even after that so I thought this was a really great way to visualize it to say Hey you know I I see all the people on Twitter cherry picking and saying Hey will this all coin out performed Bitcoin since last Tuesday well I can cherry pick too the last 60-day Roi the top 50 cryptocurrencies Bitcoins leading the pack okay and again not only is it leading the pack 30.5 percent more than half of them are negative right more than half of them are down and and some of them are down you know 20 25 during a period where Bitcoin went up 30 right so again I continue to sort of beat the same drum here the altcoin market is is is risky relative to bitcoin it doesn't mean they can't go up but in my opinion and I've expressed this many times in my opinion if if you buy an altcoin and it goes up ten percent but Bitcoin went up 20 then I you know I would count that as a loss to be completely honest right I mean because you took on more risk and you got less reward right than if you had just taken on the the Blue Chip so you always must think about your opportunity cost it's like when people you know when people buy um you know certain altcoins and and then they they sort of brag throughout the bull market about how they're all coins up like 30 40 or something it's like well congratulations you know ethereum went up 50x and and Bitcoin went up 30X and yes maybe you have an altcoin that went up 50 but you could have taken on a lot less risk and and um and and seen more reward so this is the sort of the the phase of the cycle we're in where all coins just get crushed not only against Bitcoin but also against the US dollar and I I say that fully aware that if Bitcoin goes up on its USD value on its USD pair if it goes up we know it's likely going to drag some coins with it right we know that but it doesn't drag all of them with it because again last 30 days or sorry last 60 days bitcoin's up 30 and you can't say the same about a lot of the altcoin market right you just simply can't so we need to be aware that the altcoin market will likely continue to lack Bitcoin for months to come right months to come and one thing I also wanted to point out is that imagine a scenario where Bitcoin has like a a major drop in a single day right imagine it goes down like 30 imagine it wipes out this entire game or something and so in a single day Bitcoin than the 60 day Roi would be zero right so yes it would suck if it dropped that that much that quickly right but it would still be zero percent over 60 days so like if you had bought six days before you would have seen it go up and you would have seen it come right back down and it's flat at zero percent over 60 days but what happens to the alts that are already down 20 30 right what happens to those if Bitcoin were to drop that thirty percent right then you get into a scenario where Bitcoins you know Delta from say a six two months ago is zero percent and the altcoin market has somehow managed to go down forty percent right that my friends is the altcoin Reckoning that is what we've been talking about for a long time that is what I mean by the altcoin Reckoning it's that no matter the direction of Bitcoin USD the altcoin market gets wrecked on its Bitcoin pair and and the altcoin market can hold up on their USD pairs as long as Bitcoin does collectively although you can still see many that are not holding up on their USD pairs but whenever Bitcoin makes the turn I mean in 2019 it it turned in in June in 2015 it turned in March on its on the first you know major sellout so we have we have two data points really March and June is when it previously turned in prehabbing years so you know take your pick as to when it's going to happen this time I don't know exactly when it's going to happen but what I'm saying is whenever it does happen you get into a scenario where Bitcoin might just go back to where it was a couple months ago the altcoin market somehows down 50 from where it was two months ago so just keep that in mind again the altcoin market can still stay elevated as long as Bitcoin holds up if if Bitcoin were to Rally back above above um 30k or something of course all coins can be dragged up Kicking and Screaming but it doesn't mean that that they were worth the risk right because again you can see how Bitcoin continues to lead the pack and we've been in Bitcoin season for you know quite a long time now and I I think we're going to stay in Bitcoin season frankly for another month or two at least if you guys like the content make sure you subscribe to the channel give the video a thumbs up and again check out into the crypto versus premium at into the cryptiverse.com I'll see you guys next time bye

Channel: Benjamin Cowen

Views: 30,789

Keywords: Cryptocurrency, Bitcoin, BTC, XBT, Crypto, Finance, Money, Investing, Blockchain, Wealth, Invest, Bull Market, Bear Market, Bubble, Speculative Bubble, Accumulation, Correction, Crash, Bulls, Bears, Mania, Fear, Greed, FUD, FOMO, Ethereum, ETH, Ether, Altcoins, Alts, Market, Markets

Id: hD337_I3Enw

Length: 12min 27sec (747 seconds)

Published: Thu May 04 2023