January 26, 2017, USA: Introducing the T&C 20 Index for standardizing and tracking altcoin performance.
In a bull market, altcoins achieve profit gains over 1,000%, far surpassing Bitcoin's trough to peak gain of 217% this year. In a bear market, however, losses can be devastating. Recognizing when the altcoin sector is in a bull or bear market is challenging without a standardized index. Our solution to this problem is the T&C 20 Index, which is the first public index dedicated to tracking altcoin performance.
At its current price of $913.39, Bitcoin has had a phenomenal year. New money is flowing into Bitcoin, and few would argue to the contrary. Are altcoins seeing a similar trend though? Many investors and speculators claim not, describing the altcoin market as a "dog eat dog world" or a "zero sum game."
Altcoin prices are extremely volatile. Ethereum, Monero, NEM, Steem and Siacoin all saw trough to peak gains over 1,000% this past year, but only to lose much of these gains shortly thereafter. This volatility results from markets that are not nearly as liquid as that of Bitcoin. If even a small percentage of Bitcoin investors enter the altcoin markets, the opportunity for extreme price gains is possible. The key is recognizing whether altcoins are in a bear or bull market. In a bear market, the most experienced trader is fighting an uphill battle. Alternatively, in an altcoin bull market, even a novice trader can see substantial profits.
In traditional stock markets, there are well recognized indices, such as the S&P 500, Dow 30 and Nasdaq. For altcoins, however, no such index exists. The digital currency indices that do already exist are heavily weighted toward Bitcoin and Ethereum, which render the indices useless in tracking altcoins. Bitcoin and Ethereum are two digital currencies that have reached a level of market capitalization and mainstream recognition such that their prices are not correlated with the altcoin market. Actually, oftentimes altcoins and Bitcoin trade opposite to one another as money flows from the altcoins into Bitcoin, or vice versa.
In a collaborative private group, I've been trading altcoins and Bitcoin successfully for the past few years. One tool that we developed to assist in our trades is the T&C 20 Index, which is a live chart that tracks the altcoin market. We are now making this index public with charts tracking value back to April 3, 2016. The T&C 20 Index is based on market capitalization, and is calculated using the same methodology used in the S&P 500. Live charts and additional details on the methodology can be found at www.altindex.io.
(Image courtesy of T&C 20 at www.altindex.io)
In the chart above, the T&C 20 Index demonstrates that altcoins are beginning to gain momentum again since their decline in Q3 2016. New money has been entering the altcoin market over the past couple of months. Be prepared to see many altcoins reach profit gains of 500% to 1,000% in the near future.