Bitcoin’s performance for the month of June has so far been nothing short of impeccable. Being the market leader, other cryptocurrencies in the market have mirrored their movements for the month, causing huge losses across the board. However, June data is due out and shows that bitcoin has been performing poorly in comparison to its altcoin counterparts for the month.
bitcoin performance staggering
The performance across the board has been terrible. So far, all the indices are back with double digits in losses for the month of June, and this is in addition to the subpar performance that the market saw last month. But instead of reversing the worst losses expected of small-cap altcoins, bitcoin is at the forefront to register more losses than any other index.
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The leading cryptocurrency touched losses of -35% as the month came to an end. This has resulted in a decline in the dominance of bitcoin in the broader market after recovering 48% in early June. According to data from TradingView.com, BTC dominance is now at 43.69%.
BTC records wost performance for June | Source: Arcane Research
Much of the loss stems from the liquidations of the big players in the space. However the losses recorded in bitcoin can be attributed to the fact that creditors focus their efforts on more liquid coins such as bitcoin. Thus, the disadvantages are more pronounced in digital assets.
Altcoins are suffering in tandem
Although the altcoins in this area have not registered losses as much as Bitcoin, they have also seen higher losses. The Large Cap Index is the one that follows Bitcoin very closely. Therefore, the decline in the price of BTC is more pronounced in these digital assets. This is also due to the earlier liquidation of these coins by the creditors due to their high liquidity. So far the large cap index is down -33% in the same period.
BTC drops to low $20,000s | Source: BTCUSD on TradingView.com
Mid and small cap indices have outperformed their larger counterparts. Their losses are still in the double digits, but creditors have stopped liquidating these cryptocurrencies. This is because they are more liquid and therefore pushed to the back burner in favor of the bigger ones like Bitcoin and Ethereum. In the month of June alone, the mid and small cap indices have registered a fall of -24 per cent and -22%.
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However, this is not a good forecast for these small cap altcoins. Given that the selloff in coins such as bitcoin and ethereum is nearing an exhaustion point, creditors will turn their attention to smaller altcoins as well. And given the fact that they have low liquidity, liquidation of these digital assets would result in a major drop in prices.
Featured image from Film Daily, charts from Arcane Research and TradingView.com
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