The past month has been absolutely miserable for altcoin investors who thought they could hodl their way through to the next bull run.
The global cryptocurrency market cap is close to the highest its been in six months, yet many major altcoins are down by close to 40% in the past thirty days. That’s because all the profits from the juicy altcoin pump in Q1 eventually found their way to Bitcoin, and left optimistic alt holders with significant short term losses.
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So while the exterior of the crypto market shows a healthy global cap, the interiors of it have been rearranged dramatically in recent weeks.
Bitcoin Drinks Your Altcoin Milkshake!
Hacked covered Ontology back in March when the coin was beginning a surge that would take it to 200% gains. The coin eventually overtook the blockchain platform that gave birth to it in NEO (NEO), helped in part by the buzz surrounding a touted movie distribution deal with MovieBloc.
From the heady peak of $1.68 on April 4th, the following month saw Ontology lose 40% as the coin price reverted to $0.996663. ONT’s market cap was cut by $300 million.
In the same time period, Bitcoin gained a healthy 16%, as BTC’s value rose from $5,000 to $5,800, while even exceeding $6,000 on certain exchanges.
Q1 was very kind to Stellar, as the value of XLM gained 82% from February to early April. That carried the coin price from $0.073646 up to $0.134687 – a five month high at the time.
But Stellar’s move into Q2 went the same way as the rest of the altcoin market – down. From a peak of $0.134687, the value of XLM sunk to $0.095416 – a 29% drop in the space of a month. That removed close to $800 million from Stellar’s market cap.
Cardano almost trebled in value from Feb to April, as the coin price climbed from $0.036535 up to $0.099808 – 173% gains.
Cardano’s surge was such that ADA was identified as one of the coins leading the altcoin season pump. Sentiment was also helped by the A-grade Cardano received from CoinMarketCap’s in-house analysts, which saw ADA record a 5% price increase on the day.
But by April 4th everything started to turn. The value of ADA sunk from $0.099808 down to $0.064631 – a drop of 35%. That wiped almost $1 billion from Cardano’s market cap, as its total value fell from $2.5 to $1.6 billion.
A Good Month for BTC
In the month in question, Bitcoin gained over $11 billion in market cap – furnished by the profits taken from hundreds, if not thousands of altcoins. Some have suggested that once Bitcoin is finished pumping, the roles will reverse, and profits taken on Bitcoin will be used to pump the altcoin market once again. The cycle continues.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.