Connect with us
Active Currencies 14397
Market Cap $2,722,168,234,019.20
Bitcoin Share 50.23%
24h Market Cap Change $-0.19

Bitcoin, Ethereum lose August’s first round to small-caps

2min Read
Bitcoin short-term price analysis: August 30

Share this article

Two of the market’s top cryptocurrencies, Bitcoin [BTC] and Ethereum [ETH], have been witnessing a strong surge in their values over the past few weeks. This week, however, the BTC and ETH markets appeared to be taking a break as the overall percentage change in the value of the top two crypto-assets was just 5% each, while small-cap assets were once again making a comeback.

According to data provided by Arcane Research, small-cap assets were already up by 18% within the first ten days of August, outperforming their July value of 12%. On the contrary, the mid-cap assets that led the market in July were back to the second position after reporting 11% in growth on the charts for the month.

In fact, large-cap assets, in general, maintained their strong performance on the charts and recorded more than 10% in returns for the month, while Bitcoin lagged behind with just 7%.

The reasons for the same can be largely attributed to the DeFi rally, one that diverted traders’ attention to altcoins once again, following which, Bitcoin’s market noted a prominent downtrend. This was evidenced by the CMBI Bitcoin Index as it was reporting just 3.9% in returns over the last week, followed by the CMBI Ethereum Index with 2.5%.

On the contrary, altcoins, especially the Bletchley-40 [small-cap assets], were reporting great returns of 20.7% for the week. Such exponential market growth was led by the likes of Synthetix and Ampleforth, both of which registered double-digit hikes recently on the hourly charts.

Source: CoinMetrics

Further, even the Bletchley-20 [mid-cap assets] and Bletchley-10 [Large-cap assets] were reporting better returns of 9% and 7.4% respectively, compared to single asset indexes, namely, Bitcoin and Ethereum.

Finally, with small-cap assets once again exhibiting their inverse proportionality to Bitcoin’s price, the greed in the market was observed to be climbing.

The Fear and Greed Index was noted to be around 84, pushing above 80 in over a year. With the crypto-market going through a period of positive volatility, it is important for the traders to be careful. Historically, periods of extreme greed period have been short-lived and a similar trend could be expected now as well.

Share

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.