New Altcoins That Are Seriously Underperforming Bitcoin
According to Jump Trading Data, Crypto King Remains in Charge, Despite Losing Its Speculative Shine
A recent analysis conducted by Jump Crypto reveals that the vast majority of newly minted coins have achieved extremely disappointing returns in the past year compared to Bitcoin, the world’s largest cryptocurrency.
Bloomberg reports that the company has studied the performance of more than 3,700 tokens to find that as much as 80% of them are underwater relative to the crypto king.
The astounding findings run counter to those who advocate investing in Bitcoin due to its large market cap. While there are several gems that have significantly outperformed Bitcoin, the vast majority of newly issued cryptocurrencies are either blatant scams or tokens with no semblance of use.
Notably, the company has also found that altcoins don’t perform much better in bull markets, which is perhaps the most surprising fact of the analysis published by Jump Trading. This is a sign that the altcoin market is actually efficient, despite how chaotic it may be.
Earlier today, Bitcoin, the world’s largest cryptocurrency, briefly claimed the $40,000 level before diving back below that psychologically important price level.
Image by tradingview.com
While altcoins such as Dogecoin, Solana, Shiba Inu and Cardano stole the spotlight in 2021, they continue to underperform this year due to risk-off sentiment.
Macroeconomic uncertainty is at the forefront of the crypto market, with the Federal Reserve’s rate hikes being the main bearish catalyst.