Has crypto proven to weather the crisis better than traditional markets? Let’s consult the data

Whether you look at it over the past year, YTD, or over the last 3 months, BTC seems like an oasis of stability.

Whether you look at it over the past year, YTD, or over the last 3 months, BTC seems like an oasis of stability.

Performance across different asset classes

Equities were severely battered at the height of the Covid crisis, and the weakness earlier this year continues to weigh on YTD performance

Bonds exhibited generally unspectacular performance for much of the year, and trended negative especially over the last 3 months

Only Gold exhibited consistently positive returns, hitting an all-time record of >$2,000/oz. this month

By comparison, crypto’s performance has been strongly positive, and consistently so across most of the time horizons we examined in the chart above. That’s not to say that the global pandemic had no impact; crypto was not immune to the Covid-related fallout in Q1 2020. But what distinguished crypto versus other asset classes was its resilience, reflected in the fact that the Covid-driven correction lasted only about a month, and that the subsequent recovery FAR superseded the losses from earlier in the year.

Bitcoin’s performance alone was illustrative of this resilience, with a >55% appreciation YTD through the start of August

But why stop at Bitcoin alone? While it’s true that BTC was the first coin to recover from the dark weeks of February and March, soon other coins followed suit, with some posting even more impressive recoveries. If we were to take – instead of just BTC alone – a market-weighted basket of the top 30 most liquid coins, your YTD performance would have been close to 80%

Now, if you had gone one step further and created an equal-weighted index of the top-30 most liquid coins (similar to what Velvet.Capital has created), you would’ve achieved comparable returns on a YTD basis. Beyond that, within the last 3 months, you would’ve returned >40%. Yes, you read that right – that’s >40% within 3 months!

We at Velvet.Capital designed the top-30 equal-weighted index with a core premise in mind: to provide users like you access not just to a single coin, but to the broader crypto market. Unlike a market-weighted index (which is essentially two-thirds BTC exposure), our equal-weighted index gives you true exposure to the huge upside potential offered by those often-forgotten altcoins. And as altcoins’ upside potential has started to manifest itself in full-force over the last few months, Velvet.Capital’s portfolio was there to capitalize on the trend.

Looking ahead, there are good reasons to believe that there’s room for this trend to continue. The enthusiasm for digitalization, blockchain technology, and (by extension) digital assets has continued unabated, and has in many ways been accelerated by the pandemic. Institutional interest in crypto as an asset class continues to grow. And notably, crypto’s market behavior has started to resemble that of gold, suggesting that more and more, investors may be accepting crypto as a hedge against economic uncertainty and ultra-loose fiscal/monetary policy.

At Velvet.Capital, we want to help you benefit from these trends.

Velvet.capital was launched with a vision to build a simple solution for everyone to diversify into crypto. We created the solution for ourselves and we’re excited to share it with you.

With Velvet.capital, you can now:

· Create an automated & diversified portfolio of the Top 30 most liquid crypto assets with a single click

· Buy and Sell crypto via your favorite payment system in SGD, HKD, INR, IDR, MYR, VND, PHP and THB (more options are coming soon)

· Keep your funds safely in the world’s largest crypto exchange (we’re fully integrated with Binance and using their liquidity and market depth)

We’re focused on simplicity for “first-timers”. So the process should be super smooth – you just go to velvet.capital, create an account with your email, deposit $40+ directly with PayNow or other payment systems, and you will be a happy owner of a portfolio of top-30 crypto assets

Any content in the article above, or in any other publications released by Velvet.Capital, does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any investment. In addition, nothing in Velvet.Capital’s publications should be construed as financial, legal, accounting or tax advice.

The information is provided solely on the basis that you will make your own investment decisions, and that any investment decision you make is based on your own assessment of your individual risk and return objectives.