The crypto market has seen some improvement, but performance has reversed. Contrary to popular belief, Bitcoin’s dominance has declined sharply as the asset operates below the small cap index.
Since last November’s $ 3 trillion market capitalization, the crypto market has now dropped to $ 800 billion.
Small Altcoins make a strong return
The crypto market has seen the bottom of last week, and now some are following suit A little recovery. According to a recent weekly report by Arken Research, small altcoins have been shedding 27% of their red numbers in the small cap index, but this has happened. Overall excellent performance.
Bitcoin, by contrast, is down 35 percent. In June, we saw the blue-chip coin perform well on all other indexes in this small relief window.
As a result, BTC’s market capitalization fell by -1.11% to 43.5% this week and Ether -0.31. The latter is declining from 19.5% to 15% since May.
What makes this Crypto winter cold?
According to the report, the main driver of the cryptocurrency crash was the collapse of the hedge fund 3AC. After investing more than $ 200 million in the sale of the Luna Foundation Guard simulator, 3 AC’s liquidity has been depleted and the margin call is the last straw for the old pressure market.
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According to the Wall Street Journal, the crypto hedge fund has hired legal and financial advisers to deal with investors and lenders. The company is looking for a way out, “including the sale of value and saving another company. The forecast is not very positive at the moment, given the volatility and losses in the crypto exchanges that followed the collapse.
“We weren’t the first to hit,” Kyle Davis, founder of 3 AC, said in an interview.
“In the event of a bankruptcy, lenders will first release the most liquid assets in the event of a bankruptcy, which may have been a major factor in last week’s BTC and ETH deficit,” explains Arkan Research.
The report adds, “illiquid altcoins are very challenging to sell in moderation, especially in times of stress, which explains why small coins have been under increasing pressure over the past week.”
Meanwhile, MicroStail CEO Michael Sailor described the events surrounding this summer as a “scary march” in which cryptocurrency trading and cross-collateralized altcoins could weigh heavily on Bitcoin.
“The $ 400 billion you have is a vague cloud trade without a complete and fair statement, and they are all linked to Bitcoin.”
“It should not buy unregistered securities from potential cat banks next Thursday,” Salor added, adding that recent steps to counter the recent downturn and oversight by regulators could derail the BTC’s current volatility. He is experiencing it.
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