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Bitcoin fever drives other crypto currencies such as ether, ripple, litecoin, NEM or zcash

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Bitcoin fever drives other crypto currencies such as ether, ripple, litecoin, NEM or zcash
Bitcoin fever drives other crypto currencies such as ether, ripple, litecoin, NEM or zcash

Bitcoin is receiving most of the attention among this type of virtual currency, especially for its recent and meteoric rally, but institutional investors may be looking for the next big bet.

The so-called larger cryptoactives (capitalization) have outperformed their smaller counterparts, according to Rob Sluymer, technical strategist at Fundstrat. This analyst sees this as evidence that some larger players may be looking for new investments within this asset class. Some of them, like the ethereum, are already reaching considerable levels of capitalization.

“Cryptocurrencies such as ripple, litecoin, NEM and zcash, to name a few, have shown good performance and may have a materially superior potential,” says Sluymer, “which could reflect a new institutional interest beyond the bitcoin with a focus on liquidity. “

Diversify the portfolio

In the same report, Tom Lee, virtual currency analyst, has pointed out that the correlation of bitcoin with other asset classes (stocks, bonds and commodities) has been decreasing, which is one of the reasons why the institutions They can start thinking of cryptocurrencies as an asset that diversifies their portfolios. “It represents natural diversification,” says Lee.

Ether and litecoin, the second and fourth largest cryptocurrencies, have risen to record highs amid optimism that causes the bitcoin to overcome barriers. Investors and cryptocurrency analysts believe that bitcoin futures will attract large institutions to the emerging market. The spikes occur as speculators flock to Coinbase.com, whose application has risen to the top of Apple’s download ratings. Known primarily as one of the simplest ways to market with bitcoin, this platform also provides access to litecoin, ether and bitcoin cash trading.

Since December 10, litecoin has more than doubled before bitcoin derivatives started trading on Cboe Global Markets, while ether has risen more than 40% in that time to $ 630, according to CryptoCompare. CME Group submitted its own futures contract on Sunday.

Given the relatively new interest in this asset class, anything that may indicate changes in the flows or interest may be useful for investors. Sluymer believes that the performance of cryptographic indexes is an important tool to monitor the “internal changes that take place within the universe of virtual values”.

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