As Bitcoin goes, so go we all. Its etched into the consciousness of crypto traders because the price of altcoins so often trends closely with the price of Bitcoin (BTC). If the original cryptocurrency rallies, so does the rest of the crypto market. Whenever BTC tumbles, it invariably drags its smaller siblings down with it.
Yet, as the crypto industry matures and many blockchain projects begin to generate their own unique value, the link between the price of Bitcoin and that of many alternative digital assets grows more tenuous. The fact that the BTC dominance indicator currentlysits at a three-year low, with Bitcoin responsible for just 40% of the cryptocurrency market capitalization, further speaks to altcoins increasing autonomy.
During major market price movements, most cryptocurrencies are still largely correlated with Bitcoin action as this weeks flash crash reminded us. However, today we are seeing more and more cases of altcoin prices remaining mostly unaffected by even the most dramatic BTC price swings. Here are three conspicuous examples from this weeks market bloodbath.
First, here is the price chart for Bitcoin, as seen through the interface of theCointelegraph Markets Pro platform. In the seven days prior to Thursday, BTC lost over 15% against the U.S. dollar, descending from around $56,000 to the mid-$30,000s before bouncing back to around $42,000 on Thursday.
So, how did three popular altcoins fare against Bitcoin's price during this colossal market swing?
Polygon, a platform for building and scaling decentralized applications, is firmly positioned at the heart of the explosively growing decentralized finance, or DeFi, ecosystem. Last week alone,it added 75,000 new users and $1 billion in transaction volume.
Against the backdrop of the general crypto market sliding down this week, Polygons token, MATIC, continued its staggering hike tonew all-time highs, reaching $2.18 on May 18 up from $0.36 just a month before. Over the week that has brought somber news for many other coins, MATIC gained 106% against the dollar and 142% against Bitcoin. (The chart below is denominated in dollars.)
During the tokens latest rally, its VORTECS Score an algorithmically generated metric that compares the observed patterns of market conditions around the coin against years worth of historical data registered a mind-blowing sequence of values of 90+ for MATIC, culminating in a score of 99 on May 15.
This is the highest score ever recorded for any token, and a score of this magnitude means that the model is extremely confident that in the past, similar combinations of data points consistently preceded consequential price spikes.
MATICs rallies so far have followed quite similar scenarios in terms of market and social activity, as streaks of strong VORTECS Scores (red boxes in the graph) have frequently come two to three days before the next surge (red arrows).
It should be noted that VORTECS is trained on conditions that resulted in price appreciation around 48 hours beyond the score; so, the repeated pattern of high score followed by price gains is a remarkable validation of the methodology behind the algorithm.
A layer-one network with solid fundraising and a slew of market-ready applications launched on top of it in the last couple of months, Solana has been another one to defy the markets bearish mood and tear the price charts. On May 18, SOL sprung to its all-time high above $58.
The VORTECS Score for SOL has been looking bullish for most of the week, before growing even more confident (dark green stretch marked by red box) some 30 hours before the most recent spike. Overall, SOL ended the week some 4% up against the dollar, beating Bitcoin by 23%.
In the chart here, the white line represents the value of SOL against Bitcoin rather than the dollar.
Harmony's ONE token was another asset that did remarkably better than many of its counterparts this week. Reaching the price of $0.17 following a sequence of strong VORTECS Scores, it came close to its all-time high of $0.20 recorded back in March.
When the market tumbled on May 19, Harmony took a hit as well yet it was among the quickest to recover the day after. Over the last seven days, ONE gained about 24% against the dollar and almost 50% against Bitcoin, as illustrated in the chart.
When the market turns red, parking funds safely becomes every investors chief concern. Traders can fall back on stablecoins or employ various forms of analysis to try and figure out which altcoins are most likely to go against the wider downward trend and be the first to make strong recovery.
The VORTECS Score, exclusively available to Cointelegraph Markets Pro members, could be used in such calculations to evaluate how bullish or bearish the outlook for every coin is at any given moment. The platforms interface allows toggling between asset prices denominated in U.S. dollars or BTC, which is useful at times when either of the benchmark currencies is in motion.
And as shown here, the fact that tokens with strong VORTECS Scores weathered this weeks market crash better than Bitcoin should be encouraging for crypto traders everywhere, many of whom have been advocating for further decorrelation in the markets for years.
The Markets Pro team has been tracking 42 possible strategies since the launch of the VORTECS algorithm on Jan. 3. Current top returns as of May 20, as detailed in the document on the methodology used, are as follows:
Holding Bitcoin: 22% return
Holding top 100 altcoins: 298% return
Best-performing time-based VORTECS strategy: 2,745% return
Best-performing score-based VORTECS strategy: 2,691% return
Cointelegraph Markets Pro is available exclusively to memberson a monthly basis at $99 per month, or annually with two free months included. It carries a 14-day money-back policy, to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions. Full terms and conditions.
Read the rest here:
These three cryptocurrencies weathered the storm as Bitcoin plunged - Cointelegraph
- The Great Debate - Bitcoin vs Altcoin - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Altcoin Bitcoin Trading Bot BTCE, Cryptsy, Mintpal, Poloniex, etc - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- UniversityCoin UVC Project Initiatives - New PoS Altcoin 2014 - Video [Last Updated On: May 6th, 2014] [Originally Added On: May 6th, 2014]
- Bitcoin and altcoin speculation - Video [Last Updated On: May 27th, 2014] [Originally Added On: May 27th, 2014]
- Bitcoin Faucet / Altcoin Faucet FREE BITCOINS - Video [Last Updated On: May 29th, 2014] [Originally Added On: May 29th, 2014]
- ULTIMATE ALTCOIN DAYTRADERS SPREADSHEET (The Demo:) - Video [Last Updated On: June 4th, 2014] [Originally Added On: June 4th, 2014]
- Zedomax Compound w/ 300Mh/s Altcoin Farm/Android Gallery! #HighOnAndroid - Video [Last Updated On: June 5th, 2014] [Originally Added On: June 5th, 2014]
- How to Password Protect Your Bitcoin / Altcoin Wallet Backups on a USB Flash Drive - Video [Last Updated On: June 14th, 2014] [Originally Added On: June 14th, 2014]
- Ultimate Altcoin Daytraders Spreadsheet with Portfolio (2of2) - Video [Last Updated On: June 17th, 2014] [Originally Added On: June 17th, 2014]
- Bitcoin Mafia's Altcoin Spotlight for 6/13/14 - SuperCoin [SUPER] - Video [Last Updated On: June 17th, 2014] [Originally Added On: June 17th, 2014]
- Beat boxing before Altcoin panel. - Video [Last Updated On: June 23rd, 2014] [Originally Added On: June 23rd, 2014]
- ALTCOIN GENERATOR - Video [Last Updated On: June 25th, 2014] [Originally Added On: June 25th, 2014]
- NEW FEATURES altcoin daytraders spreadsheet CHARTS CHARTS CHARTS + AUTO PORTFOLIO - Video [Last Updated On: June 28th, 2014] [Originally Added On: June 28th, 2014]
- Create your own Altcoin - by Wideo.co - Video [Last Updated On: June 30th, 2014] [Originally Added On: June 30th, 2014]
- Bitcoin and Altcoin Coin Mining - GoCoin Payment Processor - Video [Last Updated On: July 10th, 2014] [Originally Added On: July 10th, 2014]
- Multisig Coin - Most Secure Altcoin Ever - Video [Last Updated On: July 24th, 2014] [Originally Added On: July 24th, 2014]
- Coin Brief Podcast #8: New York Bitcoin Regulations, Altcoin Value, Mining Decentralization & More - Video [Last Updated On: July 24th, 2014] [Originally Added On: July 24th, 2014]
- AUTO-TRADING - Running the Free Quatloo Trader for the first time (Altcoin Auto-trader software) - Video [Last Updated On: August 1st, 2014] [Originally Added On: August 1st, 2014]
- Bittrex Altcoin Auto-Tracker Demo - Video [Last Updated On: August 1st, 2014] [Originally Added On: August 1st, 2014]
- A great new Altcoin idea..."Gayfishcoin" - Video [Last Updated On: August 6th, 2014] [Originally Added On: August 6th, 2014]
- Altcoin Investment 101: Today's tip - Video [Last Updated On: August 12th, 2014] [Originally Added On: August 12th, 2014]
- Anatomy of an altcoin with Doug Pike of Vericoin - Video [Last Updated On: August 28th, 2014] [Originally Added On: August 28th, 2014]
- Plankton WhaleFOOD - Benefits for Supporters of the FOOD Altcoin - Video [Last Updated On: August 29th, 2014] [Originally Added On: August 29th, 2014]
- Basic Trading Tactics - Bitcoin Trading Bot - Altcoin Trading Bot - Video [Last Updated On: September 25th, 2014] [Originally Added On: September 25th, 2014]
- 2) PREVIOUS TRADES (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 10th, 2014] [Originally Added On: October 10th, 2014]
- 1) GETTING STARTED/ Entering BTC (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 10th, 2014] [Originally Added On: October 10th, 2014]
- Updates: Personal, Bitcoin, Altcoin! - Video [Last Updated On: October 11th, 2014] [Originally Added On: October 11th, 2014]
- 4) CONTINUATION TRADES (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 16th, 2014] [Originally Added On: October 16th, 2014]
- 5) TWEAKS; ICO'S, IPO'S, MINING (Ultimate Altcoin Daytraders Spreadsheet) - Video [Last Updated On: October 23rd, 2014] [Originally Added On: October 23rd, 2014]
- Can an Altcoin Cure Cancer? CureCoin - Video [Last Updated On: October 24th, 2014] [Originally Added On: October 24th, 2014]
- BTC2B - Altcoin disscusion Panel - Video [Last Updated On: November 10th, 2014] [Originally Added On: November 10th, 2014]
- Poker Totty Venus's Weekly Altcoin Flyers And Divers On Gwapex - Video [Last Updated On: November 12th, 2014] [Originally Added On: November 12th, 2014]
- Altcoin & Bitcoin Trade Bot - Slowly Buy and Sell - Video [Last Updated On: November 16th, 2014] [Originally Added On: November 16th, 2014]
- Haasbot 2.0 Beta - Bitcoin Trade Bot, Altcoin Trade Bot, Bitfinex, Huobi,Bittrex,Poloniex and more, - Video [Last Updated On: January 26th, 2015] [Originally Added On: January 26th, 2015]
- Bitcoin / Altcoin Exchange to Other Payment Processors Tutorial - Video [Last Updated On: January 31st, 2015] [Originally Added On: January 31st, 2015]
- What is an altcoin? - Video [Last Updated On: February 4th, 2015] [Originally Added On: February 4th, 2015]
- How To: Altcoin Trades - Video [Last Updated On: February 14th, 2015] [Originally Added On: February 14th, 2015]
- Shocking interview! - In the mind of an altcoin developer - Video [Last Updated On: March 6th, 2015] [Originally Added On: March 6th, 2015]
- How to Pronounce Altcoin - Video [Last Updated On: March 6th, 2015] [Originally Added On: March 6th, 2015]
- Sell Altcoin Part2 - Video [Last Updated On: March 31st, 2015] [Originally Added On: March 31st, 2015]
- WCHangout 12 -- BitTrex -- Altcoin Futures, USD pairs, & #AltsAreBack - Video [Last Updated On: April 21st, 2015] [Originally Added On: April 21st, 2015]
- Armis, picisi, crowdfunding, altcoin, bitcoin, tra - Video [Last Updated On: April 23rd, 2015] [Originally Added On: April 23rd, 2015]
- Bitcoin and Altcoin price charts / graphs [Last Updated On: May 20th, 2015] [Originally Added On: May 20th, 2015]
- Altcoin faucets - Dailycoins.net [Last Updated On: May 23rd, 2015] [Originally Added On: May 23rd, 2015]
- What is an Altcoin? - CryptoCoinsNews [Last Updated On: May 30th, 2015] [Originally Added On: May 30th, 2015]
- Lumbridgecity - Bitcoin and Altcoin Trading Community [Last Updated On: June 13th, 2015] [Originally Added On: June 13th, 2015]
- How to mine dogecoins | Dogecoin Review | Is Doge Coin ... [Last Updated On: July 3rd, 2015] [Originally Added On: July 3rd, 2015]
- The Altcoin Guys - Cryptocurrency Development [Last Updated On: August 17th, 2015] [Originally Added On: August 17th, 2015]
- mining - Is there an altcoin that is only feasible to mine ... [Last Updated On: August 17th, 2015] [Originally Added On: August 17th, 2015]
- Haasbot Bitcoin Bot | Automate Bitcoin and Altcoin Trades [Last Updated On: August 20th, 2015] [Originally Added On: August 20th, 2015]
- Altcoin Forecast [Last Updated On: September 18th, 2015] [Originally Added On: September 18th, 2015]
- The AltcoinBoard - Index [Last Updated On: September 11th, 2016] [Originally Added On: September 11th, 2016]
- Altcoin News [Last Updated On: September 11th, 2016] [Originally Added On: September 11th, 2016]
- My New Best Bitcoin (and altcoin) Wallet Exodus Wallet ... [Last Updated On: October 8th, 2016] [Originally Added On: October 8th, 2016]
- Altcoin News - Daily Cryptocurrency Articles - CoinDesk [Last Updated On: October 16th, 2016] [Originally Added On: October 16th, 2016]
- The Altcoin Report #3: Zcash - Genesis MiningGenesis Mining [Last Updated On: November 14th, 2016] [Originally Added On: November 14th, 2016]
- CoinDesk How to Mine Litecoin - A Guide on Litecoin Mining ... [Last Updated On: November 14th, 2016] [Originally Added On: November 14th, 2016]
- LCF Coin Prelaunch Review: Rothschilds & Chinese govt altcoin? [Last Updated On: February 2nd, 2017] [Originally Added On: February 2nd, 2017]
- The Altcoin Report #4: Litecoin - Genesis Mining [Last Updated On: February 5th, 2017] [Originally Added On: February 5th, 2017]
- Creditbit May Soon Find Itself among the Top 10 Altcoins - NEWSBTC - newsBTC [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Interest in Bitcoin Services Grows as Altcoin Platforms Lose Traction - The Merkle [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Crypto Traders Flock to Altcoins Amid Bitcoin Price Malaise ... - CoinDesk [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Why altcoins are dying and how to make one in under an hour ... [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- What is altcoin? - Definition from WhatIs.com [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Altcoin Uptick Ends as Bitcoin Prices Pass $1050 - CoinDesk [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- Markets Update: The Top Ten Altcoins Then and Now - Nigeria Today [Last Updated On: February 27th, 2017] [Originally Added On: February 27th, 2017]
- Opinion: What's the Difference Between a Bitcoin Hard Fork and an Altcoin? - CoinJournal (blog) [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Livecoin, the Fourth Largest Altcoin Exchange, Is Now Available in Eight Languages - Coinspeaker [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Karbowanec a Ukrainian local altcoin used with mobile top ups - TechAnnouncer (press release) (registration) (blog) [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- Bittrex Altcoin Exchange Review - The Merkle [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- Livecoin, the Fourth Largest Altcoin Exchange Is Now Available in Eight Languages - Blockchain News [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- Altcoins Make a Comeback in Wake of Bitcoin ETF Decision - The Merkle [Last Updated On: March 13th, 2017] [Originally Added On: March 13th, 2017]
- Bitcoin Dominance Index Crashes Below 80% as Ethereum and Dash Rise - CoinJournal (blog) [Last Updated On: March 14th, 2017] [Originally Added On: March 14th, 2017]
- PoSWallet Offers Online Altcoin Staking and Exchange Services - newsBTC [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Several Exchanges Face Connectivity Issues During Bitcoin and Altcoin Trading Craze - newsBTC [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- allcoinsnews.com Bitcoin, Altcoin & Blockchain Tech News [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- SpectroCoin Announces Altcoin Support for Bitcoin Debit Cards - Yahoo Finance [Last Updated On: March 22nd, 2017] [Originally Added On: March 22nd, 2017]
- YoCoin Review: Pump and dump altcoin with recruitment [Last Updated On: March 22nd, 2017] [Originally Added On: March 22nd, 2017]
- SpectroCoin Announces Altcoin Support for Bitcoin Debit Cards - PR Newswire (press release) [Last Updated On: March 24th, 2017] [Originally Added On: March 24th, 2017]
- Op-Ed: Will Bitcoin's High Transaction Fees Open the Door for Altcoin Adoption? - CoinJournal (blog) [Last Updated On: March 24th, 2017] [Originally Added On: March 24th, 2017]