Fall at the feet of the king, or at least drop by 50 percent. That’s the cue most small-cap altcoins took, losing over half their value to Bitcoin [BTC].
The present year has been extremely bullish for the top cryptocurrency in the market, with BTC rising by over 250 percent. Altcoins, occupying smaller and smaller space in the digital assets industry, have been trading in the green as well, but with immense variance.
Certain altcoins like Binance Coin [BNB], Litecoin [LTC], and Ethereum [ETH] have been soaring, while other small-cap altcoins have not been visited by the bulls.
Longhash, the cryptocurrency and blockchain analytics firm, citing the Bletchley 40 Index highlighted that small-cap altcoins are down against Bitcoin by over 54 percent since April 1, adding that other altcoins in comparison, have not performed better.
Bletchley offers three indexes based on the category of the altcoin’s market share; the Bletchley 40 tracks small cap crypto assets, the Bletchley 20 tracks medium-sized crypto assets, while the Bletchley Top 10 tracks the 10 largest crypto-assets on the market. An overarching index titled the Bletchley Total Index tracks the top 70 crypto-assets trading in the market.
It should be noted that all the Bletchley Indexes include Bitcoin in their calculation.
Additionally, for the purpose of the findings, it should be noted that Bletchley does not record absolute values of the altcoins, rather the index weighs the altcoins’ market capitalization relative to the market cap of each altcoin.
The findings are indeed telling of not only the price rally of Bitcoin, but also the king coin’s market dominance.
Longhash reports that the Bletchley Ethereum Token Index dropped by 39 percent against Bitcoin, while small-cap altcoins alone fell by 54 percent, as mentioned earlier. The medium-sized altcoin market was down by 34 percent.
A key reason for the Bletchley Ethereum Token Index holding relatively steady against Bitcoin is because of Chainlink [LINK]. The 16th largest cryptocurrency in the market is up by 168 percent against BTC and makes up 12.5 percent of the Ethereum Token Index, in addition to holding 8 percent in the Bletchley Top 20.
Coming closer to the cream of the altcoins, the Bletchley Top 10 and Bletchley Total Index have their losses “in the teens.” Bitcoin takes a large chunk of the two indexes, notching up 71 percent in the Bletchley Top 10 and 66 percent in the Bletchley Total Index.
The “biggest loser,” according to the report, is the once Bitcoin-rival and premier ‘Bank Coin’ XRP, fronted by San Francisco-based Ripple. The second largest altcoin dropped half [50 percent] of its value against Bitcoin over the past three months.
In the cryptocurrency market, it is often the case of following the king coin’s footsteps. If Bitcoin is up, the collective market is in the green, bulls run amok and altcoins soar. However off-late, the altcoin market has been diverging away from the BTC-effect, and the correlation between the king and the minority has been seeping away, with one notable outlier.
Craig Wright and Calvin Ayre’s ‘cryptocurrency,’ Bitcoin SV [BSV], led Bitcoin by 17 percent with respect to relative price gain, and is the only cryptocurrency that did not fall in line with the king.