Bitcoin had its worst performance in June, will it get better from here?

Bitcoin’s performance in June has been lacklustre so far. As market leaders, other cryptocurrencies in the market mirrored this month’s moves, leading to losses across the board. However, data for June has arrived, suggesting that Bitcoin has performed worse this month compared to its altcoins.

Bitcoin performance is staggered

Poor performance in every way. All indices have posted double-digit losses in June so far, adding to the market’s underperformance the previous month. However, instead of delivering the biggest losses as expected for small-cap altcoins, Bitcoin rushed to the forefront, recording more losses than any other index.

Related reading | More downside to come as institutional investors pull the plug, outflows shake Bitcoin?

The pioneer cryptocurrency lost as much as -35% as the end of the month approached. This caused Bitcoin’s dominance in the broader market to decline after recovering to 48% in early June. According to TradingView.com, BTC dominance is now at 43.69%.

BTC records wost performance for June | Source: Arcane Research

Most of the losses stemmed from liquidations by large players in the space. However, the losses recorded by Bitcoin can be attributed to creditors focusing their efforts on more liquid tokens such as Bitcoin. Therefore, the loss of digital assets is more obvious.

Altcoins suffer at the same time

Although altcoins in this space have not recorded as many losses as Bitcoin, they have also suffered high losses. The broad market index is the one that follows Bitcoin closely. As a result, BTC price declines tend to be more pronounced among these digital assets. This is also due to creditors liquidating these tokens in the first place due to their high liquidity. So far, the large-cap index is down -33% over the same period.

Bitcoin Price Chart by TradingView.com

BTC drops to low $20,000s | Source: BTCUSD on TradingView.com

Compared to their larger peers, the mid-to-small-cap index has fared much better. Their losses are still in the double digits, but creditors have delayed liquidating the cryptocurrencies. This is because they tend to be more illiquid and are therefore pushed to the sidelines in favor of larger bitcoins such as bitcoin and ethereum. In June alone, the small and mid-cap index fell by -24% and -22%, respectively.

Related reading | Ethereum fees hit monthly low as transaction volumes plummet

However, this is not a good prediction for these small-cap altcoins. Creditors will also turn their attention to smaller altcoins, given that the sell-off in tokens such as Bitcoin and Ethereum is nearing the point of exhaustion. Given their low liquidity, the liquidation of these digital assets will result in a significant price drop.

Featured image from Film Daily, charts from Arcane Research and TradingView.com

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