Crypto Strategy Gains 27% as Bitcoin Falls 27.6% in One Year: Report

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Crypto Strategy Gains 27% as Bitcoin Falls 27.6% in One Year: Report

Highlights:

  • 10x Research found a market-neutral crypto strategy gained 27.1%, even as Bitcoin and Ethereum recorded steep losses.
  • Researchers tested six trading factors, with four delivering positive risk-adjusted returns despite mixed results across strategies.
  • Bitcoin hovered around $83,000, but analyst Ali Martinez believes it could climb to $88,000 and then $93,000.

A crypto trading strategy returned 27.1% over the past year, even as Bitcoin (BTC) fell 27.6%, according to 10x Research. The strategy used a market-neutral approach, so it performed without relying heavily on Bitcoin’s price direction. The findings come as the broader cryptocurrency market continues to face pressure.

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In an October 14 report, 10x Research compared Bitcoin, Ethereum, and 139 cryptocurrencies against different systematic trading strategies. Ethereum fell 39% over the same period, while an equally weighted basket of 139 coins lost 34%.

10x Research Reports 27.1% Return From Market-Neutral Strategy

According to 10x Research, the market-neutral portfolio returned 27.1% over the past year. It also experienced much lower volatility than the broader crypto market and had very little exposure to Bitcoin’s price movements. A market-neutral strategy generally involves buying assets expected to perform well while betting against those expected to perform poorly. Traders use this approach to profit from differences in asset performance rather than overall market direction.

The report also examined the risks of holding cryptocurrencies. The equally weighted basket of 139 coins recorded a 56% drawdown, meaning its value fell that much from a previous peak during the period studied. Meanwhile, the market-neutral portfolio performed better despite the losses across major cryptocurrencies.

However, the publicly available report summary does not identify the specific factor responsible for the 27.1% return. The detailed strategy and individual coin positions remain available to subscribers.

Four of Six Crypto Trading Factors Show Positive Results

10x Research tested six crypto trading factors, and four delivered positive returns after accounting for risk. However, not all strategies performed equally well. For instance, one momentum strategy made gains, while another struggled. These strategies usually focus on coins that have been rising or falling in price, but their results depend on which assets traders choose.

The researchers also found that two different factors held almost the same positions. Meanwhile, another factor that helped protect against market losses has shown weaker returns recently. The research suggests investors cannot judge these strategies by name alone. Their actual holdings, market exposure, and performance can differ significantly.

Still, the reported gains do not guarantee similar results in future trading. Market-neutral positions can also lose money when prices move against them.

Bitcoin Price Holds Near $83,000 as Ali Martinez Eyes $93,000

Meanwhile, Bitcoin traded at $83,393, up 0.1% in 24 hours, according to the data. Crypto analyst Ali Martinez also shared an outlook for BTC. In an X post, he pointed to a rebound from the lower edge of an ascending price channel. He identified $88,000 as an initial upside target, followed by $93,000 if the pattern holds.

Martinez’s targets are potential price levels, not confirmed gains. They offer a short-term market view alongside 10x Research’s longer-term comparison of crypto trading strategies.

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