Welcome to the Stocktwits Crypto Data Dive for Week 49 of 2023! 📊
In this issue, we’ll dive into the data to keep you informed about the progress of the overall crypto market and shine a spotlight on emerging and established trends.
The Stocktwits Crypto Data Dive has three main objectives:
- Tracking the weekly total market cap of the crypto market.
- Highlighting the 25 best-performing cryptocurrencies of the week.
- Monitoring the top 10 cryptocurrencies within various high-performing indices, including “Proof of Work,” “Web 3,” “Smart Contracts,” and more!
We track the performance of these indices from Thursday to Thursday to ensure a more accurate representation and account for weekend volatility.
So, without further delay, let’s jump right into the data from week 49 and explore its intriguing insights! 🚀
Total Market Cap
Total Market Cap Update
What is the broader trend within the crypto market? The simplest way to track that is using a total market capitalization chart. So let’s see what we’ve got. 🔭
From the highest all-time market cap close of $2.834 trillion, crypto is down -45.92%.
The cryptocurrency market is up +106.68% YTD and +93.37% YoY.
*the price levels and performance values may be very different from what you read in your mailbox vs. what’s happening in the live market. This is especially true when crypto faces a new bull or bear run.
Top 25 Cryptocurrencies
Top 25 Cryptocurrency Update
Overall, the Top 25 cryptocurrencies were higher for the week by +14.2% versus +0.7% prior.
*The universe used to construct the Top 25 list consists of all cryptocurrencies with at least $1 billion in market cap, excluding stablecoins.
Stocktwits Crypto Index RRG
Stocktwits Crypto Index RRG
Relative Rotation Graphs (RRG) help us visualize how a currency or sector performs compared to a benchmark – in this case, the U.S. Dollar Index (DXY). Think of the four colored sectors as stages in a race:
- Leading Quadrant (green) – You’re a champ! 🏆 You’re ahead of everyone else, and the crowd is cheering. But watch out; you might be overdoing it.
- Weakening Quadrant (yellow) – You’re slowing down 😓 and losing your lead. Maybe you’re a bit demoralized because your biggest fan didn’t show up. You’re now in the middle of the pack.
- Lagging Quadrant (red) – Disaster strikes! 😱 You’re injured, exhausted, or just made a big mistake. You’re now in last place, and it’s a sad scene.
- Improving Quadrant (blue) – Time for a comeback! 💪 Your motivation returns, the music swells, and you’re picking up speed. You’re back in the middle, catching up with the leaders.
Analyzing the RRG Examples
Example 1: Rapid Rotation
– If an instrument moves quickly through all four quadrants, it could indicate high volatility or erratic behavior. Traders may want to be cautious or use appropriate risk management strategies in such cases.
Example 2: Stuck in the Middle
– An instrument that remains close to the center of the RRG might be in a consolidation phase, lacking a clear trend or momentum. Traders might wait for a decisive move before entering a position.
Example 3: Consistent Leader
– If an instrument stays in the Leading Quadrant (top right) for an extended period, it could signify a strong, sustained uptrend. Traders might consider buying opportunities or riding the trend.
Example 4: Slow Recovery
– An instrument that gradually moves from the Lagging Quadrant (bottom left) to the Improving Quadrant (blue) and eventually to the Leading Quadrant (green) could indicate a slow but steady recovery. Traders might look for potential reversal or bottom-fishing opportunities.
The GIF below shows the past 10 days of movement on the RRG.
The GIF below shows the past 13 weeks of movement on the RRG.
Click to enlarge.
NFT
1. The NFT Index
The NFT Index is made up of cryptocurrencies that offer non-fungible tokens.
We construct this index by limiting the assets in this space to a minimum market cap of $50 million.
Current week’s performance: +16.8%
Last week’s performance: +3.6%
Proof-Of-Stake
2. Proof-Of-Stake Index
The Proof-of-Stake Index includes any cryptocurrency that has a Proof-of-Stake consensus mechanism.
We construct this index by limiting the assets in this space to a minimum market cap of $100 million.
Current week’s performance: +15.4%
Last week’s performance: +3.3%
Proof-Of-Work
3. Proof-Of-Work Index
The Proof-Of-Work Index is a collection of cryptocurrencies that, you guessed it, are blockchains that use Proof-Of-Work as their primary consensus mechanism. Bitcoin is the most well-known and biggest Proof-Of-Work cryptocurrency.
We construct this index by limiting the assets in this space to a minimum market cap of $100 million.
Current week’s performance: +14.7%
Last week’s performance: +1.3%
Biggest Loser - Lending
Lending Index
The Lending Index comprises cryptocurrencies and platforms where users can offer their cryptocurrency for liquidity or loans for a return.
We construct this index by limiting the assets in this space to a minimum market cap of $50 million.
Current week’s performance: +3.0%
Last week’s performance: +3.4%
Summary
Putting It All Together
The entire market is poised for a massive breakout into Lambo Moon land or an ugly fakeout.
With Bitcoin close to $40k, the total market cap close to $1.5 trillion, and the altcoin market cap close to $700 billion, we’ll have to see if momentum keeps pushing everything higher or if profit-taking occurs.
It’s a coin flip at this point.
See You Next Saturday!
Something the great trader and analyst Connie Brown wrote in magnum opus, The Thirty-Second Jewel, was this:
“The prevailing trend remains unaltered unless a bar stronger than any in the current trend emerges.”
I’m probably butchering what she wrote, but you get the gist.
If Brown’s approach rings true – and if Cardano’s weekly chart closes roughly where it is now (in the $0.60 value area), then this week’s candlestick is the reversal candlestick Brown talked about.
And because Cardano’s a top 10 market cap crypto, the strength of this weekly chart could be a leading indicator for the broader altcoin market. But this is the weekend – and bad/good stuff has a history of happening over the weekend. So keep those eyes peeled.
Say Hello
💻 Questions? Comments? Email Jon at jmorgan@stocktwits.com 💻