In the past few weeks, small-cap crypto assets – altcoins – have outperformed the market leader Bitcoin. However, there are clear technical and fundamental signs suggesting that the relative rally of cryptocurrencies against BTC will soon come to an end.
Small-cap crypto assets are developing below average
According to a report released on May 22 by crypto research firm Arcane Research, the Small Caps Altcoin Index (a weighted index of the best 30-70 cryptocurrencies) has outperformed Bitcoin in recent weeks.This class of crypto assets – which excludes large coins like Ethereum, Litecoin, XRP, etc. – has risen by more than 20% since the beginning of May. Over the same period, BTC rose only 2.57%, and the large-cap altcoins are practically flat.
Small caps index is boosted
The small caps index is being boosted by selected crypto-economic assets in the group, including OmiseGo, which rose hundreds of percent this week due to a listing on Coinbase. If you consider that smaller altcoins were traded in step with Bitcoin just two weeks ago, you can easily get the idea that there is investment potential here. However, according to some analysts and investors, this is not the case – i.e. Altcoins are reportedly on the best way to underperform in the future.