Bitcoin has now seen its prices drop as a result of Salvadoran Bitcoin law. The lightning crash that freed at least $ 400 billion from the total crypto market cap has left lingering effects on the price of digital assets. The price had plunged from $ 50,000 to $ 42,000 in less than an hour, causing an 18% loss in about 30 minutes. While bitcoin has since recovered from its lows after the crash, the asset has not been able to return to previous levels before the crash.
Although the crash hit most of the market, it was mid-cap coins that recovered the most. The Mid Caps Index had actually collapsed along with the rest of the market. But subsequent recovery trends show that it had regained a good percentage of its value since the crash.
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The mid-cap index outperforms in September
In September, the Mid Caps Index rose 21% in September alone. This is a complete deviation from models of other indices, both small and large caps, which both posted declines in September. The Large Caps index rose only 1% in September. Likewise, in line with the weak recoveries, the Small Caps index was down 3% over the month.
Mid Caps Index dominates market in September | Source: Arcane Research
Bitcoin, which appeared to have held up well during the crash, achieved the least significant recovery of the month. The assets posted the weakest performance in September, down 5%, even lower than the Small Caps index.
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Altcoins performed better after the crash, despite having more hits with the flash crash. The week following the crash saw the altcoin market recover rapidly. Coins like Algorand, which are part of the Mid Caps index, performed so well after the crash that they dragged the entire index down. While bitcoin has maintained weak momentum and continues to struggle in the market.
Bitcoin maintains its dominance in the market
The performance of indices against bitcoin has not had much of an impact on the dominance of the asset market. Although bitcoin has lost some of its dominance in the market, the total for the week turned out to be around 1% of the market dominance lost to altcoins. Currently, the dominance of the digital asset market stands at 41.47%. The performance of the Mid Caps Index saw the altcoin market rise to gain more bitcoin market share.
BTC price trading above $47K | Source: BTCUSD on TradingView.com
The price of Bitcoin has shown significant recovery patterns over the past few days. But there was no significant price recovery. The digital asset is gearing up for what appeared to be a further test of the $ 48,000 resistance point, after finding a comfortable position above $ 47,000 before the market opened midweek. Currently the price is trading at $ 47,473 with a 24 hour price change of 2.11%.
Chart from TradingView.com