Smaller cryptocurrencies outpaced bitcoin this month
On Jun 22, 2022
Despite the recent market volatility, crypto assets have remained a popular investment option for many. Bitcoin, the largest and most well-known crypto asset, has seen its price fluctuate widely this month. However, some smaller assets by market cap have done better than bitcoin in recent weeks, while they have been deeply in the red as well. This is likely due to the increased investor interest in these assets, which has driven up prices even as the overall market remains volatile.
In a recently released report, researchers have found that the 50 smallest crypto assets tracked by their index fell 27% in value during the month of June. This underperformance is better than Bitcoin’s 35% drop during the same period. Despite this volatility, there is still potential for growth in the small-cap crypto market. This shows that keeping an eye on promising projects with low market caps and strong fundamentals can still benefit individuals even during period of great volatility.
In a crypto market that has been dominated by bears over the past month, it’s surprising to see small-cap coins performing better than bitcoin. Despite the negative sentiment throughout the market, many small-cap altcoins have seen gains in the past month. This shows that there is still some bullish momentum left in this space, and people can still find good investment opportunities in smaller altcoins. Residents of the UAE can sell Bitcoin in Dubai and decide which altcoin to invest in this crucial time. While it’s unclear whether or not this trend will continue, it’s an exciting time to be involved in crypto investing.
The cryptocurrency bear market will continue until either a recession arrives or the risk of one is extinguished. While there have been some positive indicators recently, such as increased institutional interest and an increase in the number of active addresses, these developments are not yet strong enough to turn the tide. In addition, there are several potential triggers that could send the market into a full-blown recession, including global debt levels and trade wars. As such, it is still too early to call an end to the current bear market.
As cryptocurrencies become more mainstream, investors are starting to diversify their portfolios by investing in a variety of different coins. While Bitcoin is often considered to be the safest and most stable option, smaller altcoins are a lot more volatile and risky comparatively. They also don’t have as much liquidity as Bitcoin and can often be attacked since they have a lower hash rate. or they are less secure consensus-wise like many PoS coins. However, there can be great potential for profit if investors know which smaller altcoins to invest in. Only with proper research and due diligence, investors can find coins that have the potential to grow significantly in value over time.
The current cryptocurrency bear market has presented a unique opportunity for investors to buy into promising projects at a discount. While it is impossible to predict the future of the market, those who are willing to do their research and take on some risk may be rewarded handsomely when the market turns around.