How Bitcoin Is Controlling The Ebb And Flow Of Crypto

Recent data indicates that the rest of crypto market is moving along with Bitcoin in 2022.

Bitcoin’s Crypto Indexes Are Following So Far In January

As per the latest weekly report from Arcane Research, all the various indexes in the crypto market have mimicked BTC’s movements so far in the month of January.

The “crypto indexes” here refer to groups of cryptocurrencies separated into these divisions on the basis of market cap.

There are three main indexes, the “large cap index,” the “mid cap index,” and the “small cap index.” The below chart shows how these various groups have performed compared to Bitcoin in the year 2022 so far:

Bitcoin vs Crypto Indexes

It looks like the monthly mid-cap index performance has been outstanding. Source: Arcane Research Weekly update - Week 2.| Source: The Arcane Research Weekly Update - Week 2

The graph above shows that the different crypto indexes appear to have been moving along with Bitcoin throughout the year.

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BTC’s returns in January stand at double digits in the red at the moment, closely followed by the small cap index which also has 10% in losses.

Bitcoin has lost 8% due to the large cap. DOGE and NEAR are the strongest currencies in the world, so BTC’s performance is slightly better than BTC.

Although the BTC-inspired moves have been replicated by the midcap index, their strength has been greater than that as their monthly returns were just 2%.

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Thanks to the strong performance of UNI, MATIC and other cryptos accounting for approximately 20% of the entire index, the mid-cap index outperformed all the others.

Bitcoin’s dominance has once again dropped in the last week as its share of the total crypto market cap now floats below 40%.

The table below shows how much of the market capital the top coins currently occupy.

Bitcoin Market Cap

 Source: The Arcane Research Weekly Update - Week 2| Source: The Arcane Research Weekly Update - Week 2

Ethereum’s dominance has also dropped in the past week, while smaller altcoins have enjoyed a larger percentage of the market cap.

BTC Prices

At the time of writing, Bitcoin’s price floats around $41.9k, down 2% in the last seven days. The crypto’s value has fallen 10% over the last month.

Below is a chart showing the change in BTC’s price over the past five days.

Bitcoin Price Chart

 Source: BTCUSD on TradingView| Source: BTCUSD on TradingView featured image, Charts from and Arcane Research charts

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