Cross-sectional Momentum in Cryptocurrency Markets

Starkiller Capital

Corey Hoffstein, Leigh Drogen, Kevin Otte

Research

14 Pages

Starkiller Capital explores whether short term cross-sectional momentum exists in crypto and how to trade it sensibly. The authors examine simple long-only approaches that rank tokens by recent performance, then layer in practical filters like liquidity and exchange quality. The piece also discusses why benchmarking to Bitcoin can change how results look.

Key Takeaways

Short term edge: Recent leaders tended to keep leading over the following week in their tests.
Implementation matters: Liquidity screens, venue quality, and risk controls influenced outcomes more than fine tuning signals.
Benchmark choice: Evaluating against Bitcoin meaningfully affected measured excess returns and drawdown profiles.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Alternative Assets
State of Startups 2025
Feb 2026
Market Outlooks
2026 U.S. Real Estate Market Outlook
Feb 2026
Alternative Assets
Alternative Investments: Outlook 2026
Jan 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top