Bitcoin’s decline in the last week of April has been felt around the market but altcoins have taken the biggest hit of all. This decline has been particularly severe for Small Cap altcoins. These altcoins still have not seen a halt to their decline, even as the month comes to an abrupt close. The month of May may prove to be a better option for small-market cap altcoins, as recoveries are more common after major declines.
Altcoins of Small Capacity Make the Heat
The indexes all had bad April months, but the Small Cap Index suffered the worst. By at most 12%, the index has outperformed the losses incurred by other indexes in April. This is a far better performance than the three other indexes that are significantly larger than this one.
TA: Bitcoin Resumes Downtrend, Why Upsides Remain Capped| TA: Bitcoin Resumes Downtrend, Why Upsides Remain Capped
After a very successful March month, the Small Cap Index took a substantial nosedive in April and has been on a downward trend since. The losses of this index reached -28% at the end. However, this is normal as the Small Cap Index can perform poorly during difficult market conditions. It was not the usual performance that the index had seen in May.
Source: Arcane Research| Source: Arcane Research
While bitcoin was not the best performing index, it has done better than some of its counterparts. This title was won by the Mid Cap Index with a -12% loss. With a loss of -13%, the Bitcoin Index came in second. With a loss of -16%, the Large Cap Index was among the worst performers. However, it still leads the Small Cap Index by an impressive margin.
Crypto Market is still a scary place
It isn’t surprising, given the market situation that altcoins of smaller capital have been performing well. The market had fallen back to the greed zone in March and it plunged fast in April. For the past week, the Fear & Greed Index has mainly fluctuated between the fear and extreme fear territory.
The crypto market is worth $1.77 trillion | Source: Crypto Total Market Cap on TradingView.com
Investors have expressed a negative view, which has resulted in lower market prices. All digital assets in the market had fallen spectacularly over this period, and there was no indication of any recovery.
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But, it does not mean the digital asset market is doomed to fail in the short-term. Historically, May has been a bullish month in crypto markets. If the trend continues, then bitcoin prices could rise quickly.
Featured image by Yahoo!. Charts by Arcane Research and TradingView.com