As Market-Wide Sell-Offs Persist, Bitcoin Goes Red In December But Is Now Recovering.

As Market-Wide Sell-Offs Persist, Bitcoin Goes Red In December But Is Now Recovering.

2021-12-24 | Big Bob

As Market-Wide Sell-Offs Persist, Bitcoin Goes Red In December But Is Now Recovering.

December has been a bad month for bitcoin and other indices, with sell-offs rocking the crypto market. Bitcoin and altcoins have suffered many losses as a result of investors liquidating their holdings and preparing for what appears to be the start of a long-term bear market. Some, though, have shed more than others in a bloodbath for investors. Indexes keep falling by double digits across the board, indicating little recovery from the prior week, when losses had also reached double digits. Losses have accelerated over the last seven days, with the small-cap index suffering the most. The Market Is Rocked by Double-Digit Losses, Though Recovering Now Since the fall at the start of the month, Bitcoin has sustained huge losses. The digital asset was driven into the low $40,000s and has battled to break out of this zone following then. On the index axis, the asset hasn't fared much better, with losses reaching the double digits and well exceeding those reported the past week. It was Bitcoin only that saw a 20% loss over a seven-day period, up 5% from the former week's drop of 15%. Notwithstanding having the highest market share, this has rendered it one of the toughest hit digital assets in the field. Some other indices were not spared, with all-sustaining their trend of double-digit losses. The Mid Cap Index outperformed the other indices during a seven-day period, but not by much. The Large Cap Index lost 20% for the week, mirroring bitcoin's losses. With a 28 percent loss for the week, the Small Cap Index had the poorest result of all the indices for the month of December. BTC

BTC/USD 1 DAY PRICE CHART; SOURCE - COINMARKETCAP.COM

Bitcoin's market supremacy is eroding. Bitcoin continues to hold the lion's portion of the cryptocurrency market. This figure, though, has been steadily declining over the last few months. Five years hence, bitcoin accounted for almost 90% of the overall market share. Now, it has plummeted to less than half of the market share it formerly held, as indicated by the digital asset's market domination. For the last week, several of the largest cryptocurrencies by market cap have surpassed bitcoin. This earnings growth has resulted in a challenge to bitcoin's market leadership. Once again, BTC's market share has slipped near to 40%, a critical threshold that altcoins have been unable to breach. Nonetheless, altcoins have seen a substantial increase in terms of market domination, considering that bitcoin's market share was as high as 73 percent at the beginning of the year. With the year coming to a close, cryptocurrencies have succeeded to capture more than 30% of BTC's supremacy, and 2022 might be the year that it ultimately drops underneath the 40% resistance barrier.

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