November in Review - OSOM Crypto Autopilot
Chief Development Officer
It is safe to say that in true crypto fashion, November turned out to be a rollercoaster of a month: Bitcoin's price skyrocketed by 38.8% over the month, blowing past its all-time high.
November is a wrap, so it’s time for your monthly Crypto Autopilot performance update.
It is safe to say that in true crypto fashion, November turned out to be a rollercoaster of a month: 🚀Bitcoin’s price skyrocketed by 38.8% over the month, blowing past its all-time high. With such a rapid price rise, no other coin was able to keep pace with Bitcoin.
Bitcoin’s dominance, which had pretty steadily declined since May - with the DeFi boom - started picking up again in mid-September and peaked for the month around November 18. You can see the changes in dominance here.
Periods of high (and rapidly increasing) BTC dominance isn’t ideal for altcoin prices, which is the reason why we allowed the Autopilot to take a bigger position in BTC (up to 40%) as opposed to our customary 30%.
Understanding how Bitcoin and altcoins have danced around one another in the past is a good basis for understanding what is happening right now, and what might happen in the future. XForceGlobal wrote a summary in TradingView explaining the biggest “currents”. Most of November saw this BTC dominance and increase in price, which unfortunately led to the decrease of everything else. We hope that December will move us into different territories, where diversification is fun again.
November’s Autopilot performance also followed the market's downward trend in BTC terms and upward trend in EUR. If you take the long-term view, the Autopilot still presents a robust diversification strategy. But with short-term bursts of enthusiasm almost exclusively concentrated around Bitcoin, no diversification strategy can compete. The EUR performance of our model basket for the month was 37.33%. Since inception, on September 26, 2019, the Euro performance is +95.77%
Last but not least, we wanted to mention the fact that our own initial BTC allocation continues to be managed by the Autopilot, and none of our key team members have withdrawn their personal BTC from it.
What interesting moves did the Autopilot make?
Two additional crypto assets were included for consideration by the Crypto Autopilot algorithm in November: decentralized storage network Filecoin (FIL) and the relatively “corporate” decentralized public network, Hedera Hashgraph (HBAR). The Autopilot almost automatically took a position in FIL.
We’ve also eased the maximum position threshold to allow for a bigger position in BTC during the November rally but are still keeping a substantial altcoin position in order to be able to take advantage of the upcoming altcoin season too.
The Autopilot currently holds positions in 12 altcoins in an addressable universe of 44. Holdings as of November 30 are as follows:
Crypto happenings in November
The price of Bitcoin increased in part due to the entry of more and more institutional investors, such as the Guggenheim Foundation, who view it as an ideal asset for greater diversification.
OSOM has been featured in various publications over the last month:
The CEO, Anton, wrote an op-ed for TechTalks about taking a quantitative approach to asset selection.
He also wrote another about Humans vs Robots for Global Banking and Finance Review. Anton was also quoted in Finance Magnates regarding whether Bitcoin could be seen as a so-called “safe haven” asset.
OSOM Chief Product Officer, Mathieu, was interviewed on the topic of security in DeFi by CryptoNews.com.
What will the end of the year look like?
With the global COVID-19 pandemic still raging but the promise of vaccines on the horizon, it is difficult to pinpoint how the cards will fall in the short-term. However, we do not see a lot of clouds on the horizon for crypto in general for December. 🎄
What we do know is that most of us won’t be able to see our loved ones as we usually do around this time of year. But that doesn’t mean you can’t show them you care. If you want to give them the only gift that could keep on giving that they can access from a safe distance (and also propels them into the digital future at the same time), we’re here to help you!
🎁 OSOM is launching a simple and secure way for you to gift Bitcoin (or a balance in the Autopilot) to anyone through a simple link which you can send via email, text message, instant message, or by simply writing it down on a piece of paper!
Chief Development Officer
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October has concluded so we wanted to let you know what the month looked like for your Crypto Autopilot and provide a long-term outlook according to our model account. You can also check out additional insights within the app on the Autopilot page.