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Why many crypto assets are dropping faster than Bitcoin

Crypto market

cryptocurrency

As purchasers remain on the sidelines, Bitcoin, the flagship cryptocurrency fell below $30K in the early hours of Saturday. The cryptocurrency has gained a little ground in the last week, but it has been unable to outperform the majority of alternative cryptocurrencies (altcoins).

Despite failing to breach the falling channel barrier at $2,000 on May 31, the leading altcoin, Ether, remains negative. This three-week price pattern could indicate that a retest of the $1,700 support is in the works.

With the exception of Axie Infinity, Chiliz, and Helium, all other major crypto tokens were trading at a discount. In the majority of cases, however, the losses were limited. Internet computer was among the worst performers, dropping 13%, while Solana, Tron declined 9%.

What you should know

Gold was also lower on Friday, and is down 5% in the last three months, compared to a 25% drop in Bitcoin and a 4% drop in the S&P 500.

Some crypto traders have reduced their risk exposure so far. Because of their higher risk profile, cryptocurrencies typically drop more than bitcoin during bear markets. As a result, during weak markets, bitcoin’s market value grows in comparison to the whole crypto market cap (dominance ratio).

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