What’s causing the small-cap altcoins to rally while Bitcoin continues to struggle under the same market conditions?
Have you ever wondered what caused small-cap altcoins to rise while leading cryptocurrencies plummeted?
Bitcoin and Ethereum are having difficulty with support levels while small-cap altcoins surged
Last week, the Bitcoin price dropped from a high of $ 9,800 to a low of $ 8,900. Ethereum has fallen more than 10% from $ 248 to $ 215. But while these top crypto assets have dropped in price, some small-cap altcoins not only increased but also set a new all-time high. Great.
Even Bitcoin and Ethereum may appear to decline soon, confirming the existence of a deeper downtrend. But while the leading cryptocurrencies are struggling, small-cap altcoins have skyrocketed under the same conditions and sentiments.
Last week, while Bitcoin and Ethereum sank, the small-cap altcoins not only increased sharply, they set a new record. According to the data, ten altcoins with different small caps on six different exchanges set new all-time highs.
This list includes:
- Universal Market Access (UMA)
- Ren (REN)
- DMM: Governance (DMG)
- Synthetic Network Token (SNX)
- Celsius Network (CEL)
- THORChain (RUNE)
- Reserve Rights Token (RSR)
- pNetwork (PNT)
- Balancer (BAL)
- Aleph.im (ALEPH)
Worth mentioning is that all of the above ten cryptocurrencies didn’t even reach 1 billion dollars of market capitalization, only about over 775 million dollars.
In addition to being a low-cap altcoin, these assets have very little in common. With very little correlation, there seems to be no rhyme or why these crypto-assets are pumped while Bitcoin and Ethereum sink deeper. Another theory simply shows that these low liquidity assets are pumped through very little capital.
With a total capital of less than $ 1 billion, and with a few projects worth just $ 1 million in market capitalization, it takes very little money to move the prices of these assets.
Finally, profit-taking is supposed to flow out of small-cap altcoins, into medium cap altcoins. From there, the money eventually returned to significant altcoins like Ethereum, then back to Bitcoin. That’s when the bull market can start, and then the cycle will repeat many times.
Read more:
- Crypto Research Report: Bitcoin Price Could Approach $400,000 In The Next Ten Years, Increase Of More Than 4,000%
- Bitcoin Price Formed A Dreaded 89/200-Day EMA Death Cross – Sign Of Intense Underlying Weakness
- Bitcoin Had A Nearly 3,500% Return On Investment Since 2015, 70 Times Higher Of Five Traditional Stock Markets