December Turns Red For Bitcoin As Market-Wide Sell-Offs Continue

As sell-offs of crypto assets have ravaged the space, December turned out to turn out to be a bad month for bitcoins and other indexes. Investors selling their bitcoin and altcoin holdings has led to many losses. This is likely to lead to a bear market that will continue for some time. However, investors are suffering more from the bear market than others.

The market continues to see double-digit losses across all indexes. It is not an improvement on the week before, when the loss rate was also doubled. For the seven previous days, losses were even more severe with the index for small caps taking the greatest hit.

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Market Rocks Due to Double-Digit Falls

Bitcoin has experienced significant losses ever since its crash in the middle of January. Bitcoin was initially pushed to the low $40,000s, and it has not been able to recover from this level since. The index side of the assets has also not performed well. It has suffered losses that have reached the double-digits, much more than the one recorded the week before.

Bitcoin alone saw a 20% loss for a seven-day period, up 5% from the previous week’s loss of 15%. This makes it the most difficult-hit digital asset in the sector despite having the biggest market share.

Bitcoin sees double-digit loss

BTC drops 20% in seven days | Source: Arcane Research

However, the other indexes did not suffer from the same fate. They all continued their double-digit declines. The Mid Cap Index did the best for seven days but was not at its peak. The Large Cap Index mirrored bitcoin’s losses with a 20% loss for the week.

With a loss of 28%, the Small Cap Index suffered the largest losses during the week. This was the worst performance among all indexes in December.

Bitcoin Market Drops

Bitcoin continues to hold the biggest share of cryptocurrency markets. However, the number of bitcoin transactions has been declining over time. In fact, Bitcoin held 90% of total market share in five years. Bitcoin’s market share has fallen to 50% today, as evidenced by its dominance in the digital currency market.

Bitcoin price chart from

BTC starts a new recovery trend| Source: BTCUSD on

For the past week, some of the largest coins in terms of market capital have outperformed Bitcoin. This has led to a decline in bitcoin’s market dominance. Once again, BTC’s market dominance has dropped close to 40%, a crucial point that altcoins have not been able to break.

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Nevertheless, altcoins have enjoyed significant growth in the way of market dominance given that at the start of the year, bitcoin’s market dominance was as high as 73%. As the year draws to an end, altcoins are now able to take over 30% of BTC’s market dominance. It may even break the 40 percent resistance in 2022.

Featured image taken from CNBC. Also charts from Arcane Research and

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