Cryptorank recently released a report on the crypto market’s performance in Q2 2023. Uncertainty was the theme of this period, with major regulatory and institutional happenings.

Most high-cap crypto projects barely gained 

Cryptorank’s heat map depicts misfortune in crypto between April and June. While some high-cap projects registered stellar performances, there was mediocrity in most of the market.

Bitcoin relished a momentary triumph in the period, closing at $30.5k, a 10% gain from the opening value of $28.3k. Of course, the period was not characterized by all upsoars. There were also moments of descent.

Bitcoin price action. Source: Coinmarketcap

As the quarter faded away, Bitcoin increasingly gained more dominance. Dawning the quarter with 46.39% dominance, the coin gently attracted more crypto investors closing at 50.47%. The dominance growth can be partly attributed to price gains as other cryptos plummeted.

Ethereum price action. Source: Coinmarketcap

Ethereum markets displayed a similar demeanor to Bitcoin’s. It earned a rise of roughly 7% between April and June. At the quarter’s dawn, Ethereum traded at $1821, but towards the end, this coin was valued at $1948. In a similar taste but more hyper price performance, Bitcoin cash surged by 129%.

There was a transmission of the small gains seen in large-cap to lower-cap tokens in the period. For instance, Air Protocol, a crypto service platform, surged 302%. OMAX, a DeFi network, surged 294%. Other big gainers were STAIKA (143%) and Games for a Living (138%).

Bitcoin’s performance versus traditional assets. Source: Cryptorank

Then come the losers. The ambiguity of crypto markets was disclosed as more top-cap coins recorded losses. Red and darker shades of red were the most prevalent market patterns in Q2.

The market negativity cost SOL, XRP, LINK, ETC, DOT and ATOM some minute percentage of their value. MATIC and ALGO were also subject to mass plummets dropping by 37% and 41%, respectively. 

The turmoil that hit crypto markets in Q2 was way less than that reported in preceding periods. In Q2 2022, Bitcoin’s return dropped by over 56%. In a similar period in 2021, Bitcoin’s return plunged by 40%.

Despite Bitcoin and Ethereum seemingly gaining, the numbers from the report suggest punctured investor confidence as most of the crypto space lost value.

Bitcoin vs traditional assets

The ambitious crypto coin has rivalled some of the best traditional investment assets since its birth. Born to offer payments, Bitcoin is gradually becoming a gold substitute.

Bitcoin’s performance versus traditional assets. Source: Cryptorank

In the first half of the year, Bitcoin thrived against many of its rivals. Based on data, the coin has gained 84% in value since the year dawned. In this period, NASDAQ gained 31%, S&P gained 15%, Gold 4% and Silver -5%.

A Trendy quarter? 

Q2 had no shortage of big developments and unique trends. Some industry-shifting developments include; 

Bitcoin Spot ETF 

The world of Bitcoin products was rejuvenated with a new bigger player joining the race for spot ETFs. Blackrock, the largest investment manager, filed for a Bitcoin spot ETF in mid-June. 

Blackrock’s filing triggered a market frenzy, with several other companies, including Ark Invest, Invesco, and Valkyrie Investments, going for such applications. Grayscale’s Bitcoin Trust saw a massive valuation rise in Q2. This was a consequence of rumours that Fidelity Investments would purchase the trust. 

Bitcoin ordinals mania

The ordinals’ craze brought a recharge to Bitcoin markets. Although ordinals gained life in Q1, the second quarter gazed at the peak of these new assets. 

Bitcoin’s activity reached new heights when BRC-20 tokens came into the picture. In early May, the Bitcoin-based meme coins hysteria impeded transaction processing. Accordingly, Binance was forced to halt Bitcoin transactions twice, citing network issues. 

Consequently, Bitcoin transaction fees climaxed to about $30. The fee surge revived long-dead conversations about Bitcoin transaction charges.

Shanghai upgrade aftermath

Ethereum completed its Shanghai upgrade in April, opening the gates for investors to withdraw staked ETH. Initially, many expected the upgrade to trigger lumpsum withdrawals. However, three months later, the staked ETH’s value only increased to about $23 million. 

The regulatory onslaught continues

Regulatory ambiguity persisted with the SEC hastily attacking crypto projects. The US ombudsman has maintained a negative attitude towards cryptocurrency. The regulators seemingly accelerated their crypto attacks in Q2.

In a shocking turn of events, the SEC filed lawsuits against Changpeng Zhao, Binance and Coinbase, all within 24 hours. Imagine the crypto community’s reaction ensuing the events. 

While attempting to bring assets under its umbrella, the SEC labelled several more crypto coins as securities. This is an attempt to bring these assets under its umbrella.

CBDCs are still the talk of the town, but the development remains stagnated in the US, China, the UK, and Nigeria.