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Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Altcoin Indexes Take Beating As Investors Flip Alts For Bitcoin

Keshav Verma
Keshav Verma
2 years ago
3 mins read

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Data shows the different Altcoin Indexes in the crypto market have taken a beating during the past week as investors have been flipping alts for Bitcoin.

Bitcoin And Stablecoins Dominance Rises As Altcoins Struggle

As per the latest weekly report from Arcane Research, the cryptocurrency market has observed a correlated decline recently, but altcoins have taken a more substantial hit. The “Altcoin Indexes” here refer to groups of altcoins divided on the basis of market cap. The most popular indexes include the “large caps,” the “mid caps,” and the “small caps.” As their names already imply, they cover coins from different-sized segments of the sector.

Here is a chart that shows how these market-cap weighted Altcoin Indexes, as well as Bitcoin, have performed during the last month:

Altcoin Indexes Vs Bitcoin

The values of all these assets seem to have gone down in recent days | Source: Arcane Research's Ahead of the Curve - December 20

As you can see in the above graph, the cryptocurrency market has shown a strong inner correlation recently, as the altcoins have mostly maintained a close rhythm with Bitcoin during the last 30 days. This correlation was especially apparent in the selloff during the past week, as all the Altcoin Indexes sharply fell in tandem with BTC.

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Following this latest decline, the large-cap index is 2% underwater for the month, while BTC is still slightly in the green during this period. Both the mid-caps and the small caps have taken on large losses, as their returns in the last 30 days stand at -7% and -9%, respectively.

This disparity in the performance between the altcoins and Bitcoin suggests that investors have been rotating their investments from the risky alts, back into a relatively-safer option in BTC. It would also appear that the largest altcoins still saw some interest from holders, as their returns haven’t been too far off from BTC.

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Bitcoin Still “Overvalued” According To NVT Ratio

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The data for the “dominance,” a metric that keeps track of the percentages of the total crypto market cap currently being contributed by the various coins, shows that the combined share of Bitcoin and stablecoins has gone up recently:

Bitcoin + Stablecoins Dominance

Looks like the value of the metric has sharply surged recently | Source: Arcane Research's Ahead of the Curve - December 20

This 1.2% growth in the combined dominance of these two sectors provides further evidence that investors have been preferring to move out of alts lately.

BTC Price

At the time of writing, Bitcoin is trading around $16,800, down 5% in the last week.

Bitcoin Price Chart

BTC has displayed a stale price action during the last few days | Source: BTCUSD on TradingView
Featured image from Art Rachen on Unsplash.com, charts from TradingView.com, Arcane Research
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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