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Ilya St
June 29 17:18

Cryptoinvestment 101: Altcoins vs Bitcoin

Some cryptos turned out to be better for investment, and some only brought losses
More than a half of BTC holders will profit if they sell their stake at the current price. But this might not be the best outcome. 


At the beginning of the year, BTC price was a little over US$7200. Since then, the rate has grown by 25% and reached US$9000. During this period, the price rose twice to US$10,400 but fell to US$3800.
According to Intotheblock, 11% of bitcoins are currently in the hands of large investors. They include users who hold at least 0.1% of BTC in circulation. This is about 18.4 thousand coins.

Currently, 69% of users who keep bitcoins in a cold wallet are in a good position. This means that they will profit if they sell what they own at the current price. 4% of holders bought the asset at the current level and 27% suffered losses.
In 2020, Ethereum started trading at US$130. In February, its rate set a record high for this quarter - just above US$280. Then the price began to decline, fell to US$86, and now fixed at a level of US$220.
At the moment, 46% of altcoin holders will make a profit if they sell it at the current price. However, 50% will make a loss. The remaining 4% of users bought Ethereum at its current value.
The correlation index showing the dependence of the coin to bitcoin is 73%. This means that in 73% of cases the Ethereum rate repeated the price movements of the first cryptocurrency. Approximately 40% of the current altcoins are now stored on the wallets of large holders. This includes investors who have purchased at least 0.1% of ETH in circulation.
Litecoin was US$41 on January 1 and the rate of the coin has not changed much, now it is at the same level. Since the beginning of the year, the price of altcoin rose to US$80 and fell to US$24.
Litecoin holders have one of the worst positions among the leaders by capitalisation. Only 20% of investors bought the coin at a lower price than the current level. 3% of users are in the "neutral zone", and 77% will suffer a loss if they sell the stock now. LTC concentration rate in the hands of "whales" is 48%. Correlation with bitcoin is 81%.
The situation is even worse with investors of OmiseGO (OMG) token, which is 40th in the ranking of cryptocurrencies by capitalisation. Only 3% of holders of altcoin are now on the plus side. All other users will suffer a loss if they sell the coin at the current price of US$1.38. 66% of OMG is in the hands of large investors, the correlation index with BTC is 82%.
One of the best coins for investment was Chainlink (Link), which is ranked 13th in the cryptocurrency rating by capitalization. The asset started this year with US$1.8. In February, the historical maximum was set at US$4.96. In March, the exchange rate was falling to US$1.7, but on June 24 it came close to the record high again.
At the current price of US$4.4, 88% of investors with the Link token can make a profit. 7% of users bought the coin near the current value. The number of holders who will suffer a loss if they sell their cryptocurrency stocks now is about 5%.
At the same time, most of Link's tokens are in the hands of large investors, with the concentration index reaching 80%. In contrast, the bitcoin correlation index is at 24%.