Benzinga
Published Apr 16, 2024 20:57
Updated Apr 16, 2024 22:10
Bitcoin And Ethereum Take Center Stage According To Coinbase Q2 Crypto Market Guide
Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
On-chain analytics firm Glassnode, in cooperation with Coinbase International (NASDAQ:COIN), provides a comprehensive analysis of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) in its quarterly crypto market guide research report.
What Happened: The report highlights the historical performance of Bitcoin, which has been the top-performing asset in eight out of the last eleven years, delivering an annualized return of 124% from 2013 to 2023.
Despite its impressive returns, Bitcoin has also experienced significant volatility, with average intra-year declines of 47%. The current market cycle, which began in November 2022, has seen prices rise around fourfold from the lows, closely resembling the 2018-2022 cycle.
The overall market capitalization of cryptocurrencies increased by 63% in the first quarter of the year.
The report points out several contributing factors:
Also Read: Bitcoin, Ethereum, Dogecoin Plunge, $878M Liquidated: ‘Just Set Alerts At $60,000 And $74,000 And Walk Away,' Says Crypto Expert
Ethereum, the second-largest cryptocurrency by market capitalization, has also experienced significant growth and development. Ethereum’s price performance has been impressive, with the current cycle closely resembling the 2018-2022 cycle, which ended with Ethereum up 1,000% 24 months after the low.
Factors contributing to that:
Glassnode also highlights the effect of adding cryptocurrency to a 60% MSCI ACWI and 40% U.S. Agg portfolio. With the rising crypto component in the portfolio, returns rise from 33.3% (no crypto allocation) to 67.03% (5% allocation).
What's Next: The influence of Ethereum and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Peter Schiff Predicts Bitcoin ETFs Will Lead To Its ‘Biggest Crash Ever’
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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