Alternative markets update january 2021

Alternative Markets Update January 2021
For Ethereum (ETH), the development from end December 2020 to mid-January 2021 was even better for ETH, as it surged from $600 to $1,350 on 10th January 2021. Figure 2 shows the development of ETH during 2020 and in early 2021. The huge jump from $900 to $1,200 happened just a few days after Winklevoss pointed out that ETH is easily the most undervalued cryptocurrency. That argument seems reasonable, especially when considering that in the 2017 bull run ETH was worth around $1,500 when BTC was just below $20k. However, now ETH is still significantly below the mark from 2017, whereas BTC is already worth more than double than it what it was back then.

Commodities had a very rough year in 2020, despite recovering most of their losses. Figure 3 shows the CRB Commodity Index over 2020. From its low in April, caused by Covid, it gained 70% as of early January 2021. One extreme example of this development is crude oil, whose futures were negative in March 2020, and is now trading at around $50 per barrel, which is almost at the price levels prior to Covid.

Ethereum Price from January 2020 to January 2021, Source: CoinMarketCap, January 2021

Crude Oil (WTI) from January 2020 until January 2021, Source: CharlieBilello, January 2021

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