The fall of Bitcoin has been felt around the market in the last week of April but Altcoin has taken the biggest hit. More specifically, small cap altcoins are on the verge of receiving this fall. Even as the month draws to a close, these altcoins have yet to be released this fall. However, the month of May may prove to be better for these small market cap coins as there is a tendency to recover after the worst fall.
Small cap Altcoins take heat
April was a bad month for all indices, but the small cap index suffered the most. The index has outperformed other indicators by at least 12% this month. The other three indicators, which are much larger than this index, did much better in this case.
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This small cap index, coming out of a very successful month of March, took a significant push at the beginning of the month and has maintained that downward trend ever since. By the end of April, losses on this index had risen to -28%. This is a normal phenomenon, though, as small cap indices are known to perform very poorly during bad market conditions. The performance seen by the index in May was an external one.
Small cap index suffer losses | Source: Arcane Research
For other indicators, some have outperformed others, although Bitcoin has not topped the list this time around. The headline went to the mid-cap index, which recorded the lowest loss for the month with a loss of -10% among the four indices. The Bitcoin index ranks second with a loss of -13%. The Large Cap Index was the worst performer among the three with a loss of -16%. However, this number still puts it significantly ahead of the Small Cap Index.
The crypto market remains scared
The performance of small cap altcoins is not surprising given the market conditions. After returning to the region of greed in March, it sank quite quickly in April. Over the past week, the fear and greed indicators have fluctuated mainly between the areas of fear and extreme fear.
Crypto market at $1.77 trillion cap | Source: Crypto Total Market Cap on TradingView.com
This negative attitude among investors has translated into lower prices recorded in the market. Digital assets throughout the space were discarded without any signs of spectacular recovery at this time.
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However, this does not mean that digital resources have been destroyed in the short term. May is historically a bullish month for the crypto market and if it is true in form, a major recovery in the price of bitcoin could lead to a very rapid rise in asset prices in the small cap index.
Featured image from Yahoo!, charts from Arcane Research and TradingView.com