It was an interesting week for the cryptoasset markets, where we saw some price movements after a few weeks with not a lot of action. Whilst traditional equity markets also saw moderate growth, namely the S&P 500 rising from 3,155 to 3,188 by the end of the week, a number of cryptoassets took off. Interestingly, the S&P 500 and bitcoin are currently at an almost perfect correlation of 0.95. Whilst both have recovered strongly this year, neither has been able to reach the pre-March highs.
Will 2020’s Q4 be an autumn of alts, or will they fall?
Much has been written about Alt Season, and understandably so, as Tezos, ADA, XRP and Chainlink have all been flying. Given the lower liquidity that exists with these coins, often a small announcement of progress or a positive piece of newsflow can affect the price to a fairly large degree. So what has driven the performance of some of these alts?
Cardano’s ADA continues to exhibit some strong price action, as the Shelley upgrades continue apace. Chainlink recently hit an all-time high, surpassing the $5 mark, as news emerged that China’s Blockchain Service Network launched 135 public city notes. XRP also popped, as many investors seemed to realise the coin had been oversold and that $0.18 was an unjustified price given the significance of the token.
Bitcoin, conversely, has made minor gains in comparison to some of the aforementioned alts. Currently sitting at $9,280, it has yet to see the volatility that has permeated through ADA, Tezos and XRP. The hashrate is back at an all-time high, which many believe will precede a price rise. I personally don’t take this view, although I do appreciate that these hashrate increases do show increased efficiency in the system, thus leading to less overheads for miners and less of a reason to sell (as I mentioned in a CoinTelegraph piece on the theme). There has yet to be the post-halving bull run many expected, but as I noted in my newsletter from the 18th May (Halving has…