I'd like to use this sell-off as an opportunity to add to both BTC and ETH.  Which one represents the greatest value at its current level though?

In my initial post on this forum, I introduced a valuation tool I call StratVal, used by a number of institutional investors to gauge relative value for quantitative assets or strategies.   To be clear, this was not designed to be a technical trading tool.  Rather, it was designed to give one a sense of risk-adjusted value over a longer period of time.   It's not the only tool in the toolbox, but having used it for many years now on a variety of assets, I'm a huge fan.  

As a reminder, it looks at valuation through the lens of an asset's risk adjusted performance relative to its own history.  Why do I use risk adjusted?  This allows us to compare valuation metrics across assets with different risk profiles.  For example, a 5% sell-off in BTC is not a big deal.  On the other hand, a 5% sell-off in USDT would not be fun.  By adjusting the performance of each asset for its volatility though, we can compare apples to apples. 

So which is cheaper according to this metric.... BTC or ETH?   Below are the charts updated through today.   While ETH was expensive relative to BTC in my first few posts on this topic, it has come down and is now scoring close to the same as BTC.   I'm also including a chart on how far each has fallen from its recent high.  Again, now close to the same.

Personally, given they are now trading so close together when looking through this lens, I like both here in my Hodl bucket where I'll tuck it away and forget about it for 5 years. 

Hope this is informative and helpful. If so, please like and follow!

Cheers

NZFX

PS-  As always, this is not investment advice.  Please do your own research.  :)

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