Percentage Down from All-Time Highs

I was stumbling across the multiple column settings one can choose to filter statistics on Messari yesterday while thinking about the recent rally in BTC vs the rest of the crypto space. Over the last few months, we have bounced from the mid December lows in BTC in convincing fashion. This recent rally has reinvigorated the space, on top of the recent Libra token news headlines, most believe “crypto winter” has passed over us.

The specific column I looked at on Messari told me something slightly different, or at least made me think something else is going on throughout the space. The percentage down from all-time highs shows what tokens have bounced, and which ones have not. These numbers show me one of two potential theses.

The first is that we are indeed climbing out of crypto winter and these other coins will have a delayed effect — meaning the BTC is the leader of the pack but those still beaten down will be soon follow the rally. The other thesis is that this price action of the weaker coins show that these protocols have no new money coming into it and will die a slow death.

A fund or trader who is confident in his skillset to pinpoint and understand the fundamentals of these cryptos, could do well to establish long/short positions amongst these tokens to generate ALPHA, and differentiate themselves from their competitors who are more correlated to the price of BTC or a crypto index (BETA).

As always, we enjoy ‘white boarding’ trade ideas with our clients and are happy to give our market insight as well as potentially structuring speculative derivative trades on alt-coins.

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