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6 Dec 2024|RESEARCH

Alpha Navigator: Quest for Alpha [November 2024]

Crypto led the rise with BTC reaching an all-time high above $100,000 on 5 December. Fixed Income also increased while Equities had mixed performances. The US, UK, and New Zealand reduced interest rates; China kept interest rates unchanged.

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Executive Summary

  • Crypto led the rise with BTC reaching an all-time high above $100,000 on 5 December. Fixed Income also increased while Equities had mixed performances. 
  • Donald Trump won the US presidential election, which coincided with new all-time highs for equity indices (Dow Jones, S&P 500, and Nasdaq) and BTC. The US Personal Consumption Expenditures Price Index increased by 2.3% year-on-year, in line with the Dow Jones consensus forecast. FOMC minutes suggested that Fed officials support lowering interest rates “gradually”. 
  • Key macro events in December include interest rate decisions from the US, UK, Eurozone, Australia, Canada, China, and Japan
  • BTC’s performance correlations with Equities dropped slightly in November and turned negative with Fixed Income.
  • US spot Bitcoin ETFs saw total net inflows of $6.5 billion in November; BlackRock’s IBIT recorded its largest daily net inflow of $1.1 billion on 7 November.
  • Market-Neutral Pair Trader hunts for strongly correlated tokens and potential market-neutral pair trades. ADA/OP (0.81) shows the strongest price correlation, followed by DOT/ATOM(0.80), BTC/ETH(0.79) and DOT/ADA(0.79). 
  • For the BTC vs. ETH pair, the price ratio (BTC price divided by ETH price) fell towards 1-standard deviation (SD) at the end of November, down from +2 SD.
  • Our events section shows recent and upcoming events for selected tokens, as well as important macroeconomic events.
Token7D Price Change1M Price ChangeEvents
Bitcoin (BTC)+1.4%+39.4%US spot bitcoin ETFs saw their highest monthly net inflow of $6.5 billion in November. Bitcoin reached an all-time high above $100,000 on 5 December.
Ether (ETH)+5.6%+47.6%US spot ether ETFs recorded their highest monthly net inflow of $1.1 billion in November. Ethereum introduced the Mekong testnet developed for the Pectra upgrade. In addition, Ethereum Foundation researcher Justin Drake proposed the Beam Chain, a new consensus layer upgrade for Ethereum. 
Cronos (CRO)+12.0%+177.0%There is a new proposal on the Cronos EVM Pallene Upgrade, which introduces parallel transaction processing and optimistic execution to deliver 600 times faster transaction processing capacity. The proposal is currently open for community discussion. In addition, Google cloud will serve as a primary cloud provider for Cronos and its ecosystem. 
Ripple (XRP)+86.6%+432.5%XRP once overtook USDT and SOL to become the third largest cryptocurrency by market capitalisation on 2 December. This coincided with optimism around the prospect of a crypto-friendly administration under the US president-elect Trump and anticipated XRP ETFs. 
Avalanche (AVAX)+20.6%+114.3%Avalanche announced that the Avalanche9000 testnet is live on the Fuji testnet. Avalanche9000 lowered the cost of launching L1s and enabled developers to communicate via Interchain Messaging. In addition, the team launched Retro9000, an up to $40 million retroactive grant programme for the builder community. 
Chainlink (LINK)+35.6%+116.0%Chainlink introduced the Chainlink Runtime Environment (CRE) to connect traditional financial architecture and legacy systems with blockchains and smart contracts. The goal is to simplify the complexities of interacting with multiple systems by creating a unified architecture. 
As of 3 Dec 2024 Sources: Crypto.com Research, CoinGecko

Read the full Alpha Navigator report: Alpha Navigator: Quest for Alpha [November 2024]

Author

Research & Insights Team

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