The Bitcoin market has had its ups and downs, as have altcoins. From the protests in Canada to the ongoing conflict between Russia and Ukraine, the pressure on the market continues to mount. Despite all this, Bitcoin has resisted more and the results show it.
Bitcoin Holds Head of Indexes
Bitcoin is once more the most reliable option when markets are in trouble. All the major indexes are now in trouble due to the downtrend. But bitcoin is far more resilient than any of them. BTC is still the best performing index with a mere 4% loss. This is a significant difference considering that BTC was the net worst-performing index.
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Large Cap Index, which has a reputation for being able to withstand macro volatility and is often considered a safe haven by investors, suffered losses of 8%. This was twice the amount that bitcoin. There was worse news for the Mid Cap Index. It suffered losses that reached double digits. The total loss for this index that includes several crypto-related projects was 14%.
Source: Arcane Research| Source: Arcane Research
In these times, the Small Cap Index is by far the least-performing candidate. This is because altcoins which are still carving out a niche for themselves get the worst hits, with losses that exceed twice those of digital assets. The index returned 14% losses in February 2022, which was the same as the Mid Cap Index.
Stablecoins Keep The Market
The market’s worst-hit index was the Small Cap Index, as mentioned earlier. Altcoins that make up these indexes can be the most risky because they are often the smallest coins. Also, in periods of little to no safety, investors will tend to switch to bigger coins in order to decrease their market risk.
Investors are now moving towards assets like bitcoin, and the Large Cap Index as a flight to safety. Stablecoins continue to be the market leader, and they are the clear winners in this market.
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The stablecoins are tied to the US Dollar and offer investors a secure haven. They are less volatile than other cryptocurrencies, but they are still safe. Stablecoins now have a greater market share. Three assets now rank in the top 10 cryptocurrency market caps, USDT, USDC and BUSD. These three assets together now make up 9% of total crypto market capital.
Trending BTC at $39,000| Source: BTCUSD on TradingView.com
Featured image taken from US News Money. Charts from Arcane Research and TradingView.com.