Are cryptocurrencies market indices? A quick comparison with the NASDAQ Composite.

Goodbye, 2019. Thanks for the ride!

This year started really bad with the BTC price just above $3K, and many seasoned crypto-investors just gave up. We couldn’t even call it a bear run the January — April trend as the volatility was close to null.

It would have been easy to think that Mr. Buffet and his banking pals were right: Bitcoin is not a worthy asset; it is a scam. But then, boom, +260%. You wake up a morning and see the notification of Coinbase on your phone that says BTC $13K. Hopefully, that day you weren’t holding any USDC.

You can look ahead.

Have you ever thought about the Bitcoin as a market index? While many are comparing gold and Bitcoin, we would like to give a different point of view on the topic. We all know that the Bitcoin price is highly influenced by the other Altcoins listed on the various markets. By being simplistic, we could say that the negative trend that started in January 2018 ended in June 2019 was a direct consequence of many failed ICOs that wasted investors’ money and confidence.

The NASDAQ Composite.

The NASDAQ Composite is a stock market index that is heavily weighted towards information technology companies. When someone talks about the dot-com boom and bust, the topic is very likely to be related to the NASDAQ Composite price.

Now, let’s have a look at its five years chart. Can you spot some similarities with the Bitcoin?

At Yanda, we believe that the similarities are too high to be just coincidences. In the end, we are talking about technologies that need to be understood and accepted. When someone talks about crypto, remind them about the dot-com. Actually, you shouldn’t forget that too!

Happy New Year, crypto people!