Economist and trader Alex Kruger is urging crypto investors to focus on specific crypto assets such as Ethereum (ETH) competitors as the market trends downward trend.
Kruger tells his 107,500 Twitter followers that Ethereum-alternatives such as Cosmos (ATOM) and Fantom (FTM) are some of the crypto assets to turn their attention to.
Fantom is a scalable smart contract-enabled blockchain whose native token has surged by more than 13,000% over the past 365 days. Cosmos is an ecosystem of parallel blockchains that can communicate in a decentralized manner.
The trader also says that his sentiment for January will depend on the upcoming employment and inflation statistics.
“Focus on select few names such as ATOM and FTM.
For January it [whether I’m bullish or not] will depend on the data.
If we see strong payrolls on Friday, and higher-than-expected inflation on Wednesday, then markets will panic.”
Kruger says that even though he is not “bullish for January” he will “revisit” when the funding rate “gets less negative.”
A funding rate is a periodic payment that crypto traders make between each other to ensure that the spot prices are as close as possible to the perpetual futures contract price. A funding rate above zero indicates bullish sentiment while a funding rate below zero indicates a bearish sentiment.
The economist also says that a full decoupling in the crypto markets is unlikely. Decouplings occur when the returns of Bitcoin (BTC) and other correlated crypto assets cease to move in step with expectations.
“Only see decoupling temporarily when BTC is flat or sometimes when an asset gets bought hard on the dip.
Crypto intra-correlations are very high and will remain so for a long time.
The idea of full decoupling is a mirage fat rich people like to entertain in their free time.”
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Source: https://dailyhodl.com/2022/01/07/cosmos-atom-and-this-ethereum-rival-are-altcoins-to-focus-on-amid-market-crash-economist-alex-kruger/