Since Bitcoin's Best Day

bitcoin oct25 lt

After hitting an all-time high of $66,930.39 on October 20, Bitcoin, the leading cryptocurrency has been sliding continuously. The day-high in each of the subsequent days has been steadily declining, touching $66,600.55 on October 21, $63,715.02 on October 22, $61,743.88 on October 23, and $61,505.80 on October 24.

The virtual coin is currently trading at $63,006.37, around 5.7 percent lower than its all-time high touched on October 20.

Meanwhile, SEC approved Bitcoin Strategy ETF (BTF) launched by Valkyrie Investments debuted on Friday, a few days after the ProShares Bitcoin Strategy ETF (BITO) launched by ProShares. BITO closed Friday's trading down 3.23 percent from previous close, whereas BTF closed 4.71 percent lower.

Though the total number of unique addresses that hold Bitcoin assets has increased from 38.52 million on October 20 to 38.65 million, in-the-money holders have declined from 99 percent to 98 percent. The concentration of large holders however remains at 11 percent despite the dip in prices.

Bitcoin market capitalization has declined from $1.24 trillion on October 20 to $1.19 trillion now.

Despite the dip in Bitcoin price, most likely attributed to profit booking post a euphoric bull run, the market sentiment across crypto sphere could not be dampened. The total market capitalization of crypto assets excluding Bitcoin is currently at $1.42 trillion, versus $1.45 trillion on October 20. From among the top-100 (based on market capitalization) crypto assets segment, comprising 56 coins, 6 stablecoins and 38 tokens, 85 digital assets have recorded a weekly price uptick and only 15 have recorded a weekly price decline.

Among digital coins in the top-100 category, 51st ranked Harmony (ONE), is the top gainer with a weekly rally of 43.31 percent. Harmony is a blockchain platform designed to facilitate the creation and use of decentralized applications (DApps). The network aims to innovate the way decentralized applications work by focusing on random state sharding, which allows creating blocks in seconds.

Among tokens, 56th ranked THORCHain (RUNE) is the top gainer in the top-100 segment with a weekly rally of 63.32 percent. THORChain is a decentralized liquidity protocol that allows users to easily exchange cryptocurrency assets across a range of networks without losing full custody of their assets in the process. The native utility token of the THORChain platform is RUNE.

57th ranked Stacks (STX) coin, a layer-1 blockchain that brings smart contracts and decentralized apps to Bitcoin has slipped the most in the top-100 segment with a dip of around 14 percent.

The stablecoin tokens ranked among the top-100 crypto assets are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), TerraUSD (USDT), and TrueUSD (TUSD).

We have also been customarily comparing the relative performance of the top-15 coins by market capitalization to assess which coin is gaining in the competition. The top 15 coins based on market capitalization at press-time are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), XRP (XRP), Polkadot (DOT), Dogecoin (DOGE), Terra (LUNA), Avalanche (AVAX), Litecoin (LTC), Algorand (ALGO), Bitcoin Cash (BCH), Polygon (MATIC), and Stellar (XLM).

Closer scrutiny of the top 15 coins reveals that Avalanche (AVAX) has advanced to the 10th position, relegating Litecoin (LTC) to the 11th slot. Also, Algorand (ALGO) has risen to rank 12, pushing Bitcoin Cash (BCH) to 13th position.

Avalanche (AVAX), is a layer one blockchain that functions as a platform for decentralized applications and custom blockchain networks. AVAX, one of Ethereum's rivals, aiming to unseat it from the position as the most popular blockchain for smart contracts rallied by 20.43 percent during the past week.

Litecoin (LTC), a cryptocurrency created based on the Bitcoin (BTC) protocol that was designed to provide fast, secure and low-cost payments, advanced only by 8.28 percent during the week which explains why it lost out while competing with AVAX.

Algorand (ALGO) is a self-sustaining, decentralized, blockchain-based network that supports a wide range of applications. It is designed so that there are lower transaction fees. The non-mineable coin based on a permissionless pure proof-of-stake (PoS) blockchain protocol gained 11.81 percent during the past week.

Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that aims to become sound global money with fast payments, micro fees, privacy, and high transaction capacity (big blocks). The mineable coin which follows a proof-of-work algorithm gained only 2.90 percent during the past week, resultantly losing out to ALGO in the stiff competition.

The best performer in the top-15 coins is 5th ranked Solana (SOL) that has gained around 32 percent in the past week amidst a record high level of DeFi volumes. According to data from DeFi Llama, Solana-based decentralized finance (DeFi) protocols have reached a new height as the total value locked of all assets on its blockchain is now $12.7 billion.

Top tokens (excluding the stablecoins mentioned above) based on market capitalization are Uniswap (UNI), SHIBA INU (SHIB), Chainlink (LINK), Wrapped Bitcoin (WBTC), and Axie Infinity (AXS).

SHIBA INU (SHIB) has stormed to rank 2, from rank 4 earlier, with a weekly price gain of 42 percent. The meme coin had on 24th October touched an all-time-high, despite Tesla CEO Elon Musk declaring that he held none of it. It is currently ranked 13th in market capitalization among all crypto assets. Wrapped Bitcoin (WBTC) which gained only 2.99 percent during the week has been pushed down to rank 4 from rank 2 earlier.

Despite the 6 percent slump in prices post the record high, Bitcoin's annual growth of 381 percent and outperformance against other asset classes remains stunning. Gold has shed 5.24 percent, Brent Crude has added 114 percent, Dollar Index has strengthened 0.88 percent, and Dow Jones Industrial Average has rallied 29 percent in a year's time.

It is almost a week since Bitcoin touched a new all-time-high. Crypto watchers may disagree on whether it is the ETF frenzy or the agony around hyperinflation that has pushed the flagship cryptocurrency to the recent highs. As hyperinflation becomes a persisting phenomenon, there will be a clamor for effective hyperinflation-hedges going forward.

Whether Bitcoin, or for that matter any other cryptocurrency can take up that role, only time will tell.

Nevertheless, irrespective of the actual extent of hedge effectiveness, the positioning in itself may augur well for crypto world.

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