When you strip away the noise, a market cap weighted index does one thing and one thing only—it follows the trend. No fancy mechanics, no complex filters. Just pure momentum tracking based on which assets are commanding the biggest valuations right now. It's interesting how many traders overlook this basic principle when analyzing index behavior during volatile market cycles.
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CryptoGoldmine
· 01-09 07:26
Market cap weighting is just a follow-the-leader approach; simply put, it depends on who is the biggest to speak. The challenge is how to predict who the next big one will be in advance.
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MetaNeighbor
· 01-09 04:55
Basically, it's just riding the trend. When big players move, we follow. There's nothing mysterious about it.
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RetroHodler91
· 01-09 04:52
Honestly, this thing is just a tool for chasing trends, nothing mysterious about it.
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Frontrunner
· 01-09 04:50
Basically, it's about riding the trend. When big players move, we follow.
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FlashLoanKing
· 01-09 04:40
Basically, it's just following the trend—big players eat the meat, small investors drink the soup.
When you strip away the noise, a market cap weighted index does one thing and one thing only—it follows the trend. No fancy mechanics, no complex filters. Just pure momentum tracking based on which assets are commanding the biggest valuations right now. It's interesting how many traders overlook this basic principle when analyzing index behavior during volatile market cycles.