The crypto market crash has sent Bitcoin spiraling to $20,000. The pioneer cryptocurrency has in turn taken the market down with it, triggering massive losses. All digital assets in the market have not been left out of the onslaught. Regardless of their market cap, cryptocurrencies have all recorded massive losses that have translated to double-digit losses across all indexes.
Not A Respecter Of Market Caps
All of the indexes have been hit hard by the crypto market crash. Even the bitcoin index that had been putting up the most fight has succumbed to it. The market-wide collapse has seen the total market cap drop below $1 trillion for the first time in less than a year. Almost all cryptocurrencies have been following the same downtrend, one that is created by the market leader, Bitcoin.
Nevertheless, bitcoin has continued to put up a good fight. This has seen the digital asset return once more as the best performer, with a -29% loss so far in the month of June. But this ‘safe haven’ that investors have been running to for cover is barely holding above the losses posted by the other indexes.
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True to form, the Large Cap Index has mostly followed the performance of Bitcoin. Through bear markets, they have been better performers compared to their smaller counterparts and this holds true as the Large Cap Index has seen a -32% loss.
The Mid Cap Index followed the Large Cap Index very closely, with losses matching up at -32%. Once again, the Small Cap Index leads the pack in terms of losses with -33% in losses so far in the first half of the month.
Indexes suffer massive losses | Source:
Crypto Market Struggles
The struggles of the crypto market are not just beginning. It started back towards the end of 2021 when the momentum from the bull rallies had eventually peaked. However, there have been other events that have triggered more decline in the market.
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The Terra collapse had kickstarted the bear run in full bloom. This was further propelled by the Celsius insolvency rumors after the lending platform had frozen withdrawals. Since the December 4th crash, more than $2 trillion has been wiped off the crypto market cap.
BTC trending at $21,000 | Source:
All of the losses that are being incurred by the digital assets, whose correlations with bitcoin continue to rise, are supposedly being eaten up by the stablecoins as their market caps have grown. Their market share has since increased by more than 5% since the crash began.
Investor sentiment is now sitting at its lowest in the last three years. With the reading in extreme fear with a score of 7, it suggests that investors are not looking to put any money into the market.
Featured image from Euronews, charts from Arcane Research and TradingView.com
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