It seems that the crypto market woes of September have spilled over into October, going against historical trends which had October as a bullish month. The crypto market had closed in September with muted performance, but the trend hasn’t changed for October. Almost two weeks into the month, and it is starting to look like the much-awaited “Uptober” will disappoint investors.
Poor performances All-Around
Market participants are not performing well on all the cryptocurrency market indexes. Negative movement has returned in the first and second weeks of this month, with the trend continuing. Because they are all suffering similar fates, it doesn’t really matter what cryptocurrency size is.
With -4.7%, the Small Cap Index was the lowest performing index for October’s first two weeks. It is not surprising, considering small-cap altcoins can take moves a few steps further. Recovery runs higher while declines run lower.
With returns of -2.4%, Large Cap coins was the next worst performer. It is a bit surprising, given the fact that large cap coins closely track bitcoin prices. However, it didn’t fall far behind Mid Cap Index (which saw a decrease of 2.1%).
Source: Arcane Research| Source: Arcane Research
Bitcoin was the top performer during this period, with losses of -1.5%. The trend of investors turning to bitcoin in this period and profiting from the falling price is also evident.
Crypto Market Deviates from Norm
The crypto market has not been performing as anticipated. Investors are returning to bitcoin but stablecoin market shares continue to rise so investors still seek safety.
Source: TradingView.com Crypto Total Market Cap| Source: Crypto Total Market Cap on TradingView.com
The market share of bitcoin decreased by 0.20% and ETH dropped 0.24% over the week. Other top 10 crypto markets such as ADA and BNB also saw losses. The majority of this loss of dominance was attributed to stablecoins, such as USDT and USDC.
The crypto market sentiment is still low, and it’s in extreme fear territory. This suggests there won’t be any recovery. The market will see continued negative rates unless there’s a significant reversal of this trend to stablecoins.
Featured image taken from NASDAQ and charts by Arcane Research and TradingView.com
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