The decline in bitcoin in the last week of April was felt throughout the market, but altcoins suffered the biggest blow of all. Specifically, Small Cap altcoins were hit by this fall. Even as the end of the month draws to a close, these altcoins have yet to recover from this fall. However, the month of May could prove to be better for these coins with a small market capitalization given that the recovery usually comes after the worst falls.
Small Cap Altcoins take in the heat
All indices had a bad month in April, but the Small Cap Index suffered the most from it. The index exceeded the losses of other indices this month by at least 12% of the margin. The other three indices, which are significantly higher than this index, fared much better in this respect.
This Small Cap Index, which came out of the very successful month of March, dropped significantly at the beginning of the month and has maintained that declining trend ever since. By the end of April, the losses of this index had grown by as much as -28% in this period. However, this is a normal occurrence, as the small capitalization index is known to perform very poorly during poor market conditions. The effect the index saw in May was remarkable.
Small cap index suffer losses | Source: Arcane Research
As for other indices, some did better than others, although bitcoin did not come in first place this time. That title went to the Mid Cap Index, which recorded the lowest losses for the month of four indices with a loss of -10%. The Bitcoin index took second place with a loss of -13%. The Large Cap Index was the worst of the three with a loss of -16%. However, this number still puts it ahead of the Small Cap Index with a significant difference.
The crypto market remains intimidating
The effect of altcoin with less capital is not surprising given the market situation. After returning to the territory of greed back in March, it fell fairly quickly in April. In recent weeks, the index of fear and greed has mostly fluctuated between the territory of fear and extreme fear.
Crypto market at $1.77 trillion cap | Source: Crypto Total Market Cap on TradingView.com
This negative mood among investors spilled over into lower prices recorded in the market. Digital assets throughout the area were spectacularly disposed of during that time with no signs of recovery in sight.
However, this does not mean that digital assets are doomed in the short term. May is a historic bull month for the crypto market and if it remains true, then a major recovery in the price of bitcoin could lead to a rise in property prices in the Small Cap Index very quickly.
Featured image from Yahoo!, charts from Arcane Research and TradingView.com