According to CoinDesk, the Bitcoin Trend Indicator (BTI) has changed to yellow, indicating a neutral trend, as the cryptocurrency market continues to experience a sell-off. Since January 18, when the BTI turned neutral, front-end US interest rates have risen 5bps, and Bitcoin's price has fallen about 4.5% to $39.5k. The BTI, created by CoinDesk subsidiary CoinDesk Indices, is an online tool that helps investors determine the direction and strength of Bitcoin's price trend using historical data from the CoinDesk Bitcoin Price Index (XBX) and a non-discretionary algorithm.
The market has seen a 20% decline since the peak of the spot ETF launch, suggesting that investors expected greater short-term ETF inflows. Over the past week, the CoinDesk 20 Index, a benchmark that tracks top cryptocurrencies, has seen its trading volumes grow. One week after the launch of the CoinDesk 20 Index, significant daily traded volume has been observed on linked perpetual futures linked to crypto's first multi-token tradable index, with a current 24-hour volume of $44 million.
Over the past three months, the CoinDesk 20 Index has significantly outperformed Bitcoin and Ether by 1500 bps and 1200 bps, respectively. This outperformance has been primarily driven by the index's tilt towards smaller altcoins, such as Solana (SOL), Avalanche (AVAX), and Cardano (ADA), which have all outperformed their index weight relative to the established Bitcoin (BTC) and Ether (ETH) majors.
