Which cryptocurrencies have been delivering the best returns so far in the trading year? Ripple, Bitcoin, and Ethereum are all up more than 50% and have been outperforming the US dollar.
Ripple has led the pack and delivered triple-digit returns year-to-date (YTD). The majority of these gains came from a recent ruling stating that Ripple is a security when sold to institutional investors. Fortunately, these higher levels have been consolidated, suggesting that it was more than just a short squeeze.
Bitcoin has also been strong, returning more than 80% YTD. However, it has been struggling to remain above the $30K mark and is largely dependent on the US dollar’s performance. Despite the Fed hiking the funds rate several times this year, the EUR/USD is trading near its highest levels of the year, resulting in a weakening dollar which is impacting the crypto market.
Ethereum has also delivered more than 50% returns YTD. After initially rallying with Bitcoin, it gave up more of its gains during consolidation.
Overall, the cryptocurrency market is no different than the stock or FX market in the sense that it is equally important to pick the right asset to invest in.