TSLA
Tesla
-- 421.060 NVDA
NVIDIA
-- 134.700 PLTR
Palantir
-- 80.550 AMD
Advanced Micro Devices
-- 119.210 QUBT
Quantum Computing
-- 17.620 
Bitcoin is doing well. Why Smaller Crypto Assets Benefit More
Bitcoin soared more than 150% in 2023, and the world's largest cryptocurrency surpassed smaller coins in terms of market capitalization. However, according to analysts, the time for small-scale cryptocurrencies to shine may be near.
Is outperforming altcoins in the future?
According to analysts, the cryptocurrency bullish cycle has two phases. In the early stages of the crypto bull market, Bitcoin tends to outperform other crypto assets, and in the later stages, smaller coins tend to show better performance.
Cryptocurrency surges usually begin with Bitcoin. This is because Bitcoin is the most widely available and highly liquid digital asset, and it is often the first choice for first-time investors before seeking exposure to other coins.
According to analysts, the average daily transaction volume of Bitcoin in 2023 was 18 billion dollars, and Ether was 8 billion dollars.
However, if the crypto rally continues, investors may look for tokens with higher growth rates. As proof of this, “altcoins,” which are cryptocurrencies other than bitcoins, such as decentralized finance and non-fungible tokens, are on the rise in 2020 and 2021.
Since 2015, in the past two cryptocurrency bullish cycles, so-called altcoins have risen significantly in the second phase, surpassing Bitcoin in all cycles.
Admittedly, cryptocurrencies are an emerging market that only started in 2009 and are highly volatile. Also, small-scale cryptocurrencies are often riskier than Bitcoin. The Federal Reserve (Fed) began raising interest rates from almost zero. In 2022, several crypto projects collapsed.
Perhaps the most feasible way to create alpha in this field is to maintain consistent exposure and invest in altcoins that have a fundamental reason to be valued many times higher than Bitcoin.
Altcoins, which are the basis for protocols that fit the product market and generate actual profits with strong unit economics, will perform best in future cycles, similar to what is expected in other asset classes such as stocks. According to analysts, this highlights the importance of token selection for investors.
VanEck to close Bitcoin futures ETF
VanEck announced Wednesday that it will liquidate its Bitcoin futures exchange-traded funds at the end of this month as investors' willingness to invest is expected to shift to newly approved funds that directly invest in cryptocurrencies.
According to the ETF sponsor, shareholders can sell shares in the Van Eck Bitcoin Strategy ETF until the market closes on January 30. ETFs will be delisted after the market closes.
VanEck made this move last week after launching a Bitcoin spot ETF together with several other asset management companies in response to the Securities and Exchange Commission approving a Bitcoin spot ETF for the first time in history on 1/10.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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rain622 : That was a great article. I'm thinking about what should be done to connect the real economy with crypto assets, but in order for the many tokens to truly perform,
・Which area of the real economy do you want to contribute to
・How to gain the trust of investors
(Take basic things such as security for granted)
is important,
For companies that adopt tokens for sales and payments, it will be easier to incorporate them into their own activities by using them as judgment criteria.
As a success image, tokens that can be used to enter theme parks are something that contributes to the economy of developing countries as another role, and something that can realize a cycle of wealth.
(As a side effect) I think it will also be a new means of raising funds for unlisted companies.
I think the accounting process will become even more complicated, but I hope Japan will take the initiative and use it as a model.
Tonkatsu is good, isn't it?
I also often fry it myself.