Small Cap Altcoins Get Decimated In January Crypto Derisking
January 26 2022 - 01:00PM
NEWSBTC
During the January crypto derisking carnage, it seems small cap
altcoins have come out as the losers as they look to end the month
35% in the red. Small Cap Altcoins Suffer The Largest Losses In
January Bloodbath As per the latest weekly report from Arcane
Research, it looks like the smaller the coins, the greater have
been their losses during the January carnage. Based on the market
cap of each crypto, all the coins can be put into different groups.
These “market cap weighted indexes” include mainly three divisions,
the “large cap index,” the “mid cap index,” and the “small cap
index.” The below chart shows how all these major altcoin indexes
performed over the month of January as compared to Bitcoin: Bitcoin
seems to have been the crypto that has lost the least this month |
Source: The Arcane Research Weekly Update - Week 3 As you can see
in the above graph, all the altcoin indexes have observed double
digit losses in the month of January so far. While the other
indexes have registered returns in the negative 20s, the small cap
index has been even deeper in the red, observing losses of around
35%, making the index the clear loser for the month. Related
Reading | Bitcoin Whales Take Advantage Of Market Crash To
Gobble Up Millions In BTC Trailing the small cap index are the mid
cap and large cap cryptos, both approaching the end of the month
with 28% losses. Bitcoin has been the “winner” this month as its
value has fallen slightly less over the month, currently sitting at
-26%. BTC’s dominance has also seen a sharp increase over the past
week, rising above 40% for the first time since November of last
year. The below table shows how the share of the market cap of the
top cryptos has changed over the last seven days. BTC's dominance
has risen more than 2% in the last week | Source: The Arcane
Research Weekly Update - Week 3 The report suggests that with
altcoins losing some of their share of the total crypto market to
Bitcoin, it seems the altcoin season may have finally come to an
end. Related Reading | Market May Be Suffering But Bitcoin And
Ethereum Will Pull Back Stronger, Bloomberg Analyst BTC Price At
the time of writing, Bitcoin’s price floats around $37.9k, down 10%
in the last seven days. Over the past month, the crypto has lost
25% in value. The below chart shows the trend in the price of BTC
over the last five days. BTC's price seems to have recovered some
over the last couple of days | Source: BTCUSD on TradingView
Following the crash down to $33k, Bitcoin’s price has rebounded
back with sharp uptrend to $38k in the last two days. Featured
image from Unsplash.com, charts from TradingView.com, Arcane
Research
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