Zignaly Providers Monthly Recap (December)
TL;DR
The Bitcoin ETF ***show generates noise in the market
First month of activity for the Altcoins Spot Provider after its long shutdown period
BTC and Alts uncertain in January while ETH is (a little) on the move
Intro
This entire past month has seen a reduction in the price change (but not in the volatility) of the BTC market, with a lot more activity among the Altcoins, at least during the first half of the month, and more activity in ETH just after the BTC ETF approval.
You probably know that this BTC ETF approval has not been smooth, with several contradicting messages coming from the SEC and the type of price action that has followed the approval, which has probably taken many by surprise.
As a result, the BTC market has been pretty much flat and choppy this entire month which, as we will see, has negatively affected the Provider’s results in the short term, and affecting also the Altcoins market during the second half of the month.
The only asset that seems to have performed better since the start of the year has been Ethereum, which has displayed an almost perfect inverse correlation to BTC during this period.
Overall the market has been showing uncertainty at times of big decisions (ETF), which has translated into a very volatile non-directional movement, the least favorable for our systems that, however, will again reap the rewards as soon as the market decides which direction it wants to go.
Providers
BTC Futures
Probably due to the market-specific uncertainty and the related volatility, the BTC Provider is the one who has suffered the most “beating”, registering a -16.23% for the month, due to a few positions in both directions being stopped out.
While a bull market seems to be on its way, and we will catch any opportunity it will eventually make available to us, we are also ready to manage our positions and risk accordingly if the market decides to change direction or be non-directional for some time.
ETH Futures
Although ETH has been moving up for some time, this move has been very weak and volatile at the same time, not allowing the Provider to benefit from it.
While the ETH Futures Provider has been in a long position for most of the past three months, including December, all of these positions have been “chopped” due to the amount of volatility and the lack of momentum in ETH (see BTC vs ETH chart above).
Again this month the Provider has been riding a potentially profitable position for some time, which unfortunately hasn’t lasted long enough for it to generate a meaningful profit.
As a result of the overall market uncertainty, and ETH remarked weakness against BTC and the Altcoins, this Provider has closed the month of December pretty much breaking even (-2.23%).
Altcoins Spot Provider
After starting the month with a decisive push that has taken its equity straight up, the Altcoins Spot Provider seems to have taken a break due to the vast majority of the altcoins losing momentum, probably also on the wave of the BTC ETF turmoil.
While a bit of reassessment is historically always needed by alts, especially right at the beginning of a new cycle, the vast majority of the altcoins seem to just be taking a break after the decisive push needed to finally reverse the long downtrend that had characterized the (almost) past two years, and unless the overall market reverses at this point, alts should continue on their way to new highs.
Although not impressive, the Altcoins Spot Provider has been the best-performing Provider for the month, currently sitting at +5%, and also registering a very significant influx of fresh new capital in a short time just after coming out from its shutdown phase, confirming this as one of Zignaly’s favorite providers.
Conclusions
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