Bitcoin Losing Value as Altcoins Rise
Bitcoin has done poorly over the past month, repeatedly failing to hold $20,000. Throughout this time, altcoins have managed to rise in value.
Bitcoin has been falling for the last month and has had difficulty staying above $20,000. During this time, altcoins have started to gain momentum as they have followed the digital currency down. With July's first weekly close approaching, performance across the market shows that bitcoin is being left behind.
Altcoins Lead the Way
The altcoins had been the worst losers of the downtrend. Although all of the indexes including bitcoin had seen losses into the double-digits, many small cap altcoins had recorded more losses. But now that it seems like a recovery is underway, these smaller altcoins have claimed most of its gains.
The Small Cap Index has seen gains up to 4.9% barely a week into the month of July/; this recovery is replicated across the Mid Cap Index, which was surprisingly, returned the highest gains for that time period. Mid Cap's 5.0% return beat all other indexes.
The Large Cap Index was not an exception to the trend of recovery as it recorded 3.1% in gains so far. The index of large-cap coins had been the closest to bitcoin's rally, and as such, its performance has been very close to that of bitcoin's.
Bitcoin Is Doomed
Bitcoin, which is the market leader, has returned the least gains out of all of the indexes. The digital asset was a somewhat safe haven when the market was crashing back in June but altcoins are getting all of the gains as it begins to stabilize.
Bitcoin’s gains for the month of July have been the lowest of all indexes. This was quickly followed by a drop in market dominance given the performances of the other indexes. The decline, however, has been quite small with only a -0.10% recorded change for last week.
This sharp recovery in altcoins compared to bitcoin shows that faith is recovering towards lower cap altcoins. These altcoins which carry more potential for higher returns are highly favored by investors chasing a 100x or similar.
The top stablecoins, USDT, USDC, and BUSD withstood the bear market this time around and have actually seen growth. In fact, all of the large cap coins except Ethereum suffered losses in their market share apart from BNB which increased by 0.06%.
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