Small Cap Altcoins Take April Shower, Will May Bring New Growth?

BlockchainSmall Cap Altcoins Take April Shower, Will May Bring...


Bitcoin’s decline in the last week of April has been felt around the market but altcoins have taken the biggest hit of all. More specifically, Small Cap altcoins have been on the receiving end of this decline. Even as the end of the month draws to a close, these altcoins have yet to get a reprieve from this decline. However, the month of May could prove to be better for these small market cap coins given that recoveries tend to come after the worst declines.

Small Cap Altcoins Take The Heat

All of the indexes have had a bad month in April but the Small Cap Index has suffered the most of this. The index has surpassed the losses garnered by the other indexes this month by at least a 12% margin. The other three indexes which are considerably larger than this index have fared much better in this regard.

Related Reading | TA: Bitcoin Resumes Downtrend, Why Upsides Remain Capped

This Small Cap Index, coming out of a highly successful month of March, took a significant nosedive at the start of the month and has maintained that downtrend since then. By the end of April, the losses in this index have grown as high as -28% in this time. This is a normal phenomenon, however, as the Small Cap Index is known to perform very badly during poor market conditions. The performance seen by the index in the month of May had been an outlier.

Small cap index suffer losses | Source: Arcane Research

For the other indexes, some have fared better than others, although bitcoin did not come out on top this time. That title went to the Mid Cap Index which recorded the lowest losses for the month out of the four indexes with a -10% loss. The Bitcoin Index rolled in at second place with a -13% loss. The Large Cap Index was the worst performer of the three with a -16% loss. However, this number still puts it ahead of the Small Cap Index by a significant margin.

Crypto Market Remains Fearful

The performance of the smaller cap altcoins is no surprise given the state of the market. After recovering back into the greed territory back in March, it had plunged quite fast in April. For the past week, the Fear & Greed Index has mainly fluctuated between the fear and extreme fear territory.

Crypto total market cap chart from TradingView.com

Crypto market at $1.77 trillion cap | Source: Crypto Total Market Cap on TradingView.com

This negative sentiment among investors has translated into the lower prices that have been recorded in the market. Digital assets all across the space had dumped spectacularly during this time with no sign of a recovery in sight.

Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying

However, this does not mean that the digital assets are doomed for the short term. The month of May is historically a bullish month for the crypto market and if it stays true to form, then a large recovery in the price of bitcoin could see the prices of assets in the Small Cap Index rise very quickly.

Featured image from Yahoo!, charts from Arcane Research and TradingView.com



Learn more

Latest news

Barry Silbert’s Grayscale Slapped with Lawsuit by Rival

Alex Dovbnya Grayscale has been accused of misrepresenting chances of getting favorable decision from SEC Digital asset manager Osprey Funds...

McDonald’s Q4 boosted by higher menu prices amid inflation alarms

McDonald’s on Tuesday beat Wall Street estimates for quarterly profit on higher menu prices, even as it warned...

Dow Jones Futures: Market Rallies Into Fed Rate Hike; AMD, Snap Are Key Movers Late

Dow Jones futures fell modestly after hours, along with S&P 500 futures and Nasdaq futures, with attention turning...

HKMA Stablecoin Regulations to Demand Backing by Underlying Assets

The Hong Kong Monetary Authority (HKMA) was not successful in identifying a location within the core concepts of...

How This Online Grocer Is Working Towards Becoming The World’s First Climate Positive Grocery Store

Online grocer and B Corp Thrive Market has set some ambitious goals for itself: to be Zero Waste...

Must read

Barry Silbert’s Grayscale Slapped with Lawsuit by Rival

Alex Dovbnya Grayscale has been accused of misrepresenting chances...

McDonald’s Q4 boosted by higher menu prices amid inflation alarms

McDonald’s on Tuesday beat Wall Street estimates for...

You might also likeRELATED
Recommended to you