Crypto hedge funds that are backed by a basket of digital assets outperform BTC a month ago as the number one cryptocurrency dropped from its peak price as seen in our bitcoin latest news.
Bitcoin ended the month in November being 7% down but the hedge funds that have diverse portfolios of crypto dropped by 2% for the time being, according to Eurekahedge Crypto-Currency Hedge fund Index. According to Bloomberg, the outperformance could suggest that the altcoins could offer the investors improved returns compared to BTC which has dropped 29% from the all-time high. The analysts used ETH As an example and noted that Bitcoin’s year-to-date performance could not compete with the former.
At the time of writing, BTC gained 69% since the start of January with a price of $29K. Ethereum on the other hand is up by 445% since New Year’s eve when it traded around $740. A comparison can be made with the total market cap of the crypto assets that also outperformed Bitcoin this year with a gain of over 200% whcih Bloomberg confirmed that the same was true for the crypto hedge funds. The data bears out the same theme for the crypto hedge funds since the Eurekahedge Crypto-Currency Hedge Fund Index is up by 170% at year’s end.
The EurekaHedge fund performed better in 2020 because of a 200% gain however BTC was still the king in 2020 with a gain of 300% over the course of the year. The gains are small compared to some of the other altcoins that went crazy in 2021. Solana’s SOL token surged 11,544% this year and became the fifth cryptocurrency by market cap. Terra’s LUNA increased by 9,438 so far while AVAX increased by 3171%. MATIC made a huge increase since January 1st by 11,819%.
Crypto markets are bouncing back slightly after the period of losses. The total market cap is 3.6% on the day to $2.37 trillion. BTC hit an intraday high of $49,421 after the FED’s decision to boost the tapering of asset purchases. BTC started to consolidate around $48K and sits above the 200-day moving average. Ethereum reclaimed $4000 after a gain of 4.7% over the past 24hours while other solid performers include AVAX and SOL.
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