The crypto king continues to reign despite losing his speculative luster, according to data from Jump Trading
A recent analysis by Jump Crypto reveals that the vast majority of newly minted coins have registered extremely low returns compared to bitcoin, the world’s largest cryptocurrency, over the past year.
Bloomberg reports that the company studied the performance of over 3,700 tokens to find that 80% of them are underwater relative to the crypto king.
Surprising conclusions fly in front of those who advocate investing in bitcoin because of its large market cap. While there are many gems that have outperformed bitcoin significantly, the vast majority of newly issued cryptocurrencies are either obvious scams or tokens without any semblance of utility.
Notably, the firm has also found that altcoins do not outperform in bull markets, which is arguably the most surprising news from the analysis published by Jump Trading. This is a sign that despite how chaotic the altcoin market is indeed efficient.
Earlier today, Bitcoin, the world’s largest cryptocurrency, briefly reclaimed the $40,000 level before falling below the psychologically important price mark.Image by tradingview.com
Even though altcoins like Dogecoin, Solana, Shiba Inu and Cardano made headlines in 2021, they are underperforming this year due to risk-averse sentiment.
Macroeconomic uncertainty is front and center in the crypto market, with the Federal Reserve’s rate hike being the major recession catalyst.