Lucida & Falcon: Sector Perspective Analysis of the Cryptocurrency Market
By analyzing the sector data on Falcon, we found that nearly 50% of the sectors had a return rate lower than Bitcoin in the past 90 days.The tool used in this tweet is: Falcon
https://falcon.lucida.fund/en/multi_factor_category_selector
1. If you are not good at analyzing and selecting sectors with potentially high returns, it might be better to simply hold Bitcoin.
By analyzing the sector data on Falcon, we found that nearly 50% of the sectors had a return rate lower than Bitcoin in the past 90 days.
This phenomenon is in stark contrast to people's inherent impression: that most cryptocurrencies have higher returns than Bitcoin during a bull market, and investors can easily profit in a bull market, but this is not the case.
In my impression, the market differentiation phenomenon in the past few years has not been so common. This clearly increases the difficulty of making profits.
2. Popularity does not equal actual high returns
People tend to focus on popular sectors composed of blue-chip assets or well-known cryptocurrencies or overvalued coins, such as DePin and DeSci, but popularity does not equal actual high returns.
Falcon shows that the price changes in the categories of DePin and DeSci in the past 90 days are quite low, ranking 21st and 45th respectively.
Some less popular sectors, such as artificial intelligence big data and storage wallets, rank higher and have considerable returns.
So do not invest based on popularity, only trust real data.
3. Several sectors that performed well in the past 90 days have experienced stagnation for several days.
Falcon shows that some sectors that performed well in the past 90 days, such as inscriptions and the ICP ecosystem, have experienced stagnation for several days.
Additionally, the leading coins in these sectors have also been stagnant.
All this evidence suggests potential risks in the future.
4. About Us:
Lucida (https://www.lucida.fund/) is an industry-leading quantitative hedge fund that entered the crypto market in April 2018, primarily trading strategies such as CTA/statistical arbitrage/option volatility arbitrage, and currently manages a scale of $30 million.
Falcon (https://falcon.lucida.fund/) is a next-generation Web3 investment infrastructure based on a multi-factor model, helping users "select," "buy," "manage," and "sell" crypto assets. Falcon was incubated by Lucida in June 2022.
For more information, please visit https://linktr.ee/lucidaandfalcon
