Hedge funds have been doing better since November after Bitcoin’s decline

Bitcoin ended November down 7%, but hedge funds with a more diversified crypto portfolio were only down 2% over the reporting period, according to the Crypto Hedge Fund Index. Heurekahedge.

Source: Eurekahedge

Follow Bloombergwhich shows that altcoins can offer better returns for investors than Bitcoin, which is now 29% below its all-time high (ATH).

Analysts have come out claiming that Bitcoin’s performance has not rivaled Ethereum since the start of the year.

Bitcoin vs Altcoins

At the time of writing, Bitcoin is up 69% from $ 29,000 at the beginning of the year. Meanwhile, Ethereum is up 445% year-to-date when it was trading around $ 740.

Meanwhile, the total crypto market capitalization has also outperformed each other with a return of 200%. Bloomberg notes that the same goes for crypto hedge funds:

“Cryptocurrency hedge funds are also showing similar results. The Eurekahedge crypto hedge fund index – consisting of 18 equally weighted members – had risen 170% year-on-year by the end of November. “

The Eurekahedge Fund performed even better in 2020 with a plus of 200%. Bitcoin, however, did very well in 2020, with gains of around 300% over the course of the year.

Even so, those numbers are tiny compared to some other altcoins that are literally in 2021. Solana’s SOL token is up 11,544% since the beginning of the year, making it the fifth largest cryptocurrency by market capitalization.

At the same time, Terras LUNA rose by 9,438%, Avalanche’s AVAX by 3,171%, while Polygons MATIC achieved a record profit of 11,819%.

Cryptocurrency market outlook

The crypto market is currently recovering somewhat after a two-week price decline. Total market cap rose 3.6% over the day to $ 2.37 trillion, according to CoinGecko.

Bitcoin hit an intraday high of $ 49,421 after the Fed decided to accelerate cuts in asset purchases. It has started to consolidate above USD 48,000, near the support at the 200 day moving average (200 MA).

Ethereum has rebounded over $ 4,000 after gaining 4.7% in the past 24 hours. Other altcoins that are performing well are SOL, up 10% to $ 177, and AVAX, up 17% to $ 105.

Source: Coin360

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