Bitcoin has been struggling for the past month and has been struggling to hold $20,000, having lost its footing several times. During this time, altcoins, chasing the digital asset, began to gain momentum through the short recovery it had recorded over the past few weeks. As July approaches its first weekly close, overall market performance has shown that Bitcoin is lagging behind.
Altcoin Take the Lead
The altcoins were the worst losers of the downtrend. Although all indices, including bitcoin, posted double-digit losses, small-cap altcoins notably posted more losses. However, now that the market is looking like a recovery stretch, smaller altcoins have reared their heads to claim most of the gains.
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The small cap index has seen gains of up to 4.9% in barely a week of July/month. This recovery has been replicated in the Mid Cap Index which, surprisingly, returned the highest gains for the time period. With 5.0%, the Mid Cap Index comes in ahead of all its peers.
As far as the large cap index is concerned, it has remained untouched by the recovery trend with gains of 3.1% so far. These coins were the closest to Bitcoin’s rally and thus, the closest to it in terms of gains seen so far.
BTC returns worse performance against altcoins | Source: Arcane Research
Bitcoin faces a worse fate
Bitcoin, although the market leader, has returned the least gains out of all the indices. When the market was crashing back in June, digital assets provided some degree of safe haven, but altcoins are reaping all the gains as the market begins to stabilize.
Bitcoin has gained 0.5% so far in the month of July, the lowest of them all. This was followed by a decline in market dominance given the performance of other indices. However, the decline has been steep and with only -0.10% change recorded last week.
BTC failed to break $20,500 resistance | Source: BTCUSD on TradingView.com
This sharp recovery in altcoins vis-a-vis bitcoin indicates that confidence is recovering towards lower cap altcoins. These altcoins which have more potential for higher returns are highly favored by the investors followed by 100x or similar.
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As far as stable opposition is concerned, they have continued to maintain their dominance and have seen really good growth this time. The top stablecoins USDT, USDC and BUSD registered gains of 0.23%, 0.18% and 0.08%, respectively. in their market share. BNB also followed the trend with a gain of 0.06%, but all other large cap coins saw a decline, with Ethereum losing 0.22% of its market share.
Featured image from Binance, charts from Arcane Research and TradingView.com
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