The Top Performer of Cryptocurrencies is dueling With the Dollar This Quarter s Top Performer
Wild gyrations in markets have left cryptocurrencies dueling with the dollar for the title of the top performing asset this quarter.
Since the end of June, the MVIS CryptoCompare Digital Assets 100 Index has gained 7.3% of value, while stocks, bonds, commodities and gold have suffered losses. The Bloomberg Dollar Spot Index is up by a similar magnitude over the period, reaching a new record high.
The slide in conventional assets is due to the turmoil caused by a global wave of aggressive monetary tightening to fight inflation. The question of why volatile digital token has so far bucked the wider third quarter selloff is an open question. There is a 27% jump in Ether on optimism about an energy-saving revamp of itsEthereumBlockchain.
After the $60 billion wipeout in the Terraform Labs ecosystem, which saw the TerraUSD stablecoin and linked token Luna unraveled, some speculated that it may have hit its nadir in June.
Jonathon Miller, managing director for Kraken Australia, said that the recent performance is an early indication that we are past the contagious volatility caused by the Luna and Cryptolender collateral damage in the last quarter.
Miller said that the Merge software upgrade, which was known as the Ethereum Software upgrade, also increased the needle on the attention falling on the industry.
On Monday, both ether andBitcoin advanced. Even though there was a mini-crash in the British pound, the price of virtual currency increased by 2.1% to $19,300 at 10 a.m in London.
It could be thatCryptocurrencies are merely delaying the inevitable - Bitcoins are only a 6% swoon away from its June low of $17,600 and many prognosticators reckon that the chances of such a slide are high.
Cici Lu, chief executive officer of Venn Link Partners Pte, said bearish macro sentiment is dominating all risky assets. We can see the price of Bitcoins going much lower than $17,500. The more optimistic bent can take advantage of seasonal trends. The most after the month of November, the average return of digital currency has been just over 22% in the past decade, according to data compiled by Bloomberg.