Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum
September 21 2021 - 6:00PM
NEWSBTC
Bitcoin kicked off this week on the red, and the rest of the crypto
market followed. In the top 10 cryptocurrencies by market cap, BTC
and Ethereum are amongst the most resilient for the weekly chart.
In that time, the market has been hit by a succession of “buy the
rumor, sell the news” events, and one major macro factor with the
potential default of Chinese real state giant, Evergrande. Thus,
the levels of uncertainty have been on the rise. Related Reading |
Did Bitcoin Really Experience A Flash Crash Down To $5,400? In the
middle of this storm impacting Bitcoin and other major
cryptocurrencies, there is a select group that has managed to stay
in the green. According to a recent report by Arcane Research, the
assets that comprised their middle-cap altcoins index recorded some
profits as the bearish trend unfolded. For the 30 days chart, the
Mid Cap Index comprised of cryptocurrencies such as Tezos,
Algorand, and Avalanche showed small profits. These tokens have
seen a massive rally during Q3, 2021, and were amongst the biggest
losers during this week’s bearish trend, but they are still up 5%
in the monthly chart, as seen below. In opposition, Bitcoin records
a 9% loss in the 30-day chart with similar losses for Ethereum,
Cardano, Solana, Binance Coin, and other major cryptocurrencies.
Smaller assets experienced the highest losses for this period with
a 14% loss by September 21. Arcane Research noted: As often happens
during market turmoil, the Bitcoin dominance increases, as altcoins
often act as high beta play on the crypto sector. The last week,
bitcoin’s market share increased by 1.14% grabbing market share
from the other big coins like ETH, ADA, and SOL. Bitcoin Reacts To
Macro Factors, What’s Next? In a separate report, investment firm
QCP Capital analyzed the bigger picture for Bitcoin and the crypto
market. Although mid-caps preserved part of their gains in higher
timeframes, they will most likely follow BTC’s price trajectory in
the short term despite their fundamentals. Related Reading
| Bitcoin Holders Take Profits As Price Falls, Indicators
Remain Bullish? The first cryptocurrency by market cap faces
September, a month that has historically been bearish for the
asset, and potential complications from regulators in the U.S. and
the performance on the Asia markets due to Evergrande. As QCP
Capital noted, tomorrow September 22, will be crucial to determine
the trend in the short term. Bitcoin must hold the $40,200 support
in case of more downside pressure when the market re-open after a
long weekend. Related Reading | New To Bitcoin? Learn To Trade
Crypto With The NewsBTC Trading Course The firm expect some
government intervention to rescue the real estate company. This
could result in the best-case scenario for Bitcoin and the crypto
market, but there is a lot of fear and uncertainty about China’s
approach. QCP Capital said: (…) the lack of guidance so far from
Chinese regulators is scaring the market. The fear here is that
President Xi could allow. Evergrande to fail as an example to the
other real estate players ahead of the 100th anniversary of Chinese
Communist Party (CCP) in 2022. He has already taken draconian steps
with Big Tech and Education. At this point, the market has already
priced in Evergrande’s equity as worthless (…). At the time of
writing, Bitcoin trades at $42,814 with a 2.6% loss in the daily
chart.
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