Weekly Onchain Insights: Elon, Tesla and Bitcoin Performance
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Every week the IntoTheBlock team publishes a newsletter that summarizes key data insights about the crypto market. Below is a quick summary.
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Hey onchainers,
Welcome back to IntoTheBlock’s newsletter. We have created a different type of newsletter for crypto fans that is not about news, but about data and analytics. Every week, we deliver valuable data insights about the crypto market.
Bitcoin Update: $47,809.03 (4:00 am EST)
This has been one of the most exciting weeks for crypto. Ethereum CME Futures launched and Bitcoin’s mainstream presence has exploded since Tesla purchased $1.5 billion of BTC. This announcement comes a few days after Elon Musk changed his Twitter bio to “Bitcoin”.
Tesla, the Fortune 500 electric company became the second-largest publicly-traded company to hold Bitcoin, only surpassed by MicroStrategy. With the addition of Tesla’s $1.5b investment, there are now over $6 billion in Bitcoin held by publicly traded companies.
Tesla’s 1.5B investment drove the price of Bitcoin to new highs, and at the moment of writing, Bitcoin’s price is sitting at $47,809.03, rising by 26.55% over the last 7-days.
The Global In/Out of the Money (GIOM) classifies addresses based on if they are profiting (in the money), breaking even (at the money) or losing money (out of the money) on their positions at current price. IntoTheBlock calculates an address’ average cost based on the weighted average price at which it bought or received the tokens currently held by the address.
As Bitcoin continues to hit new 2021 highs, 100% of the addresses currently holding BTC are reportedly profitable as indicated by the In The Money clusters above.
This Week Analysis: Bitcoin Performance against Tesla
Bitcoin has become one of the best-performing assets of 2020 and 2021 and using some of the recently released IntoTheBlock’s Capital Markets indicators, we will compare Bitcoin against the best-performing stock of 2020, Tesla.
As can be seen in the graph above, both assets have seen outstanding returns, although Tesla has slightly outperformed Bitcoin over the last year, the gap has been narrowing recently. Moreover, IntoTheBlock’s historical correlation shows how in January of 2021 both assets seem to move in tandem, but as Bitcoin entered into price discovery recently, their price correlation dropped to -0.26, indicating that there’s no statistical price correlation between both at the moment.
Lastly, the Sharpe and Sortino ratios are two of the best-establishes metrics in financial risk analysis. Conceptually, the Sharpe ratio indicates how well an equity investment is performing compared to a risk-free investment. Similarly, the Sortino ratio is a variation of the Sharpe ratio that only factors in downside risk.
Generally, the greater the value of the Sharpe and Sortino ratio, the more attractive the risk-adjusted return. This means that over the past 30-day period, a rational investor would prefer Bitcoin against Tesla because its investment would earn more return per unit of the bad risk that it takes on.
What’s new at IntoTheBlock?
Introducing IntoTheBlock Capital Market Insights
To streamline the process of evaluating Bitcoin and Ethereum against traditional capital markets, this week we unveiled IntoTheBlock Capital Market Insights, a suite of over 80 analytics that provide insights about crypto-assets relative to capital market vehicles. AND IT’s TOTALLY FREE. The release provide a rich set of interactive visualizations that can be used to compare and contrast Bitcoin and Ethereum against popular asset classes.
For each asset class, the release includes the following metrics:
Dataset downloads are now available in the ITB platform.
Earlier this week, ITB enabled data download capabilities across all the 200 plus analytics included in the platform. When looking at any indicator, simply click the download button on the top right corner and you can access a CSV dataset with the underlying data of that specific visualization.
