Breadth Death
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 132;
Crypto breadth has collapsed. The red skies have returned, which shows that 65% of all major crypto tokens have resumed downtrends. The blue seas have eased back too, meaning just 5% of tokens are in uptrends.
Percent of Crypto Projects in Up and Down Trends in USD – Past Year
When compared to Bitcoin, it gets worse. 83% of tokens are in downtrends when measured in BTC, and just 2% are in uptrends.
Percent of Crypto Projects in Up and Down Trends in BTC - Past Year
Our data goes back to 2018. While it isn’t so bad in USD, in BTC, it’s as bad as it gets. It means that Bitcoin is by far the strongest crypto protocol.
Percent of Crypto Projects in Up and Down Trends in BTC Since 2018
This is also confirmed by our ByteTree Crypto Average (BCA) indicator, which measures the performance of an equally-weighted crypto portfolio comprising the top 100 tokens in USD. It has fallen back to a 0-star ByteTrend Score. The average token is no longer making money.
BCA Back to a Zero
This doesn’t necessarily mean it’s carnage, but it reaffirms Bitcoin’s dominance, which Trading View shows to be 60.39% of the total crypto market cap.
Bitcoin Market Cap Dominance in the Crypto Market (1-week)
The Bitcoin price has eased over the weekend, largely attributed to a lower chance of a Trump victory. He saw votes in crypto and, having previously been a sceptic, has become a fan.
Bitcoin and Trump
But the selloff isn’t much, and Bitcoin remains on a 5-star ByteTrend score.
Bitcoin 5-Star Trend
I would say that the price is slightly ahead of the network. Our fair value remains at $62,450, which is a little below the current price. The point is that Bitcoin is the safest place to be in crypto, and the value is underpinned.
Taking this into account, this week, we are reducing exposure to crypto tokens and increasing exposure to Bitcoin.
