Small Cap Altcoins Get Decimated In January Crypto Derisking

During the January crypto derisking carnage, it seems small cap altcoins have come out as the losers as they look to end the month 35% in the red.

Small Cap Altcoins Suffer The Largest Losses In January Bloodbath

As per the latest weekly report from Arcane Research, it looks like the smaller the coins, the greater have been their losses during the January carnage.

Based on the market cap of each crypto, all the coins can be put into different groups. These “market cap weighted indexes” include mainly three divisions, the “large cap index,” the “mid cap index,” and the “small cap index.”

The below chart shows how all these major altcoin indexes performed over the month of January as compared to Bitcoin:

Bitcoin seems to have been the crypto that has lost the least this month | Source: The Arcane Research Weekly Update - Week 3

As you can see in the above graph, all the altcoin indexes have observed double digit losses in the month of January so far.

While the other indexes have registered returns in the negative 20s, the small cap index has been even deeper in the red, observing losses of around 35%, making the index the clear loser for the month.

Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

Trailing the small cap index are the mid cap and large cap cryptos, both approaching the end of the month with 28% losses.

Bitcoin has been the “winner” this month as its value has fallen slightly less over the month, currently sitting at -26%.

BTC’s dominance has also seen a sharp increase over the past week, rising above 40% for the first time since November of last year.

The below table shows how the share of the market cap of the top cryptos has changed over the last seven days.

BTC's dominance has risen more than 2% in the last week | Source: The Arcane Research Weekly Update - Week 3

The report suggests that with altcoins losing some of their share of the total crypto market to Bitcoin, it seems the altcoin season may have finally come to an end.

Related Reading | Market May Be Suffering But Bitcoin And Ethereum Will Pull Back Stronger, Bloomberg Analyst

BTC Price

At the time of writing, Bitcoin’s price floats around $37.9k, down 10% in the last seven days. Over the past month, the crypto has lost 25% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have recovered some over the last couple of days | Source: BTCUSD on TradingView

Following the crash down to $33k, Bitcoin’s price has rebounded back with sharp uptrend to $38k in the last two days.

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research