Bitcoin’s June performance was nothing short of remarkable. Due to bitcoin being the market leader, all other cryptocurrency in the market have followed its movement throughout the month. This has resulted in huge losses for everyone. However, the numbers for June are in and it shows that bitcoin’s performance for the month has been worse in comparison to its altcoin counterparts.
Bitcoin’s Performance Staggers
The performance across all indexes has been horrible. The indexes all have suffered double-digit loss for June. That’s on top of the terrible performance of the market the month before. Bitcoin has been registering more losses than any other index, despite the small caps expected to return the largest losses.
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As the month ended, losses in this pioneer cryptocurrency reached as high as 35%. The result has been a decrease in bitcoin’s dominance in comparison to the larger market. In June, it was 48%. Data from TradingView.com shows that BTC is currently at 43.69%.
Source: Arcane Research| Source: Arcane Research
The liquidations of major players in the sector have largely led to losses. However, the losses in bitcoin could be explained by creditors focusing their attention on bitcoin and other liquid currencies. This is why the loss in bitcoin is more severe.
Altcoins Suffer In Tandem
While altcoins aren’t as vulnerable as bitcoin, the losses they suffered were still significant. Large cap is an index that closely follows bitcoin. Hence, the decline in BTC’s price tends to be more pronounced in these digital assets. This is due to the high liquidity of these coins and creditors liquidating them first. The large cap index for the same period is currently down 33%.
Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Comparable to larger indexes, the mid- and small caps have performed much better than their bigger counterparts. Although their losses are still high, creditors have resisted liquidating these cryptocurrencies. Because they are less liquid, these cryptocurrencies tend to get put off the market in favor of more liquid ones like Bitcoin or Ethereum. For June, the losses in mid- and small cap indexes were -24% and 22% respectively.
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It is however not a positive prognosis regarding these smaller cap altcoins. Due to the fact that coins such as Ethereum and Bitcoin are rapidly approaching exhaustion, creditors will be looking for smaller altcoins. Due to their lower liquidity, these digital assets may see larger price declines.
Featured image taken from Film Daily. Also charts by Arcane Research and TradingView.com.
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