Bitcoin Performance Staggers
Performance all across the board has been terrible. So far, all of the indexes have come back with double-digits in losses for the month of June, and that is in addition to the subpar performance the market had seen in the prior month. But instead of the expected small cap altcoins returning the worst of the losses, bitcoin has barreled to the forefront to register more losses than any other index.Related Reading | Outflows Rock Bitcoin As Institutional Investors Pull The Plug, More Downside Coming?
The pioneer cryptocurrency saw losses touch as high as -35% as the month draws to an end. This has resulted in a decline in the dominance of bitcoin over the broader market after recovering to 48% in early June. BTC dominance is now sitting at 43.69% according to data from TradingView.com.
BTC records wost performance for June | Source:Mostly the losses have stemmed from the liquidations of large players in the space. The losses recorded in bitcoin can however be attributed to the fact that creditors focus their efforts on more liquid coins like bitcoin. Thus the losses are more pronounced in the digital asset.
Altcoins Suffer In Tandem
Although the altcoins in the space have not recorded as many losses as bitcoin, they have seen high losses too. The large cap index is one that follows bitcoin very closely. Hence, the decline in BTC’s price tends to be more pronounced in these digital assets. It is also due to creditors liquidating these coins first due to their high liquidity. So far, the large cap index is down -33% in the same time period.
BTC drops to low $20,000s | Source:The mid and small cap indexes have done much better compared to their larger counterparts. Their losses still range into double-digits but creditors have held off on liquidating these cryptocurrencies. This is because they tend to be more illiquid and are therefore pushed to the back burner in favor of larger ones such as Bitcoin and Ethereum. The mid and small cap indexes have recorded losses of -24% and -22% for the month of June alone.
Related Reading | Ethereum Fees Touch Monthly Lows As Transaction Volumes Plummet
However, it is not a good prognosis for these small cap altcoins. Given that sell-offs in coins such as bitcoin and Ethereum are nearing an exhaustion point, creditors will turn their attention to smaller altcoins too. And given the fact that they possess less liquidity, liquidations in these digital assets will lead to larger declines in price.Featured image from Film Daily, charts from Arcane Research and TradingView.com
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