Crypto Crash Hits Riskiest Tokens as Small-Cap Index Plunges to 2020 Lows

As of November 17th, 2025, the crypto market selloff shows no signs of abating, and the riskiest tokens are facing the harshest consequences. The MarketVector Digital Assets 100 Small-Cap Index, which tracks the 50 smallest digital assets in a basket of 100, has fallen to its lowest level since November 2020, though it has since pared some of those losses.

The plunge in the small-cap index comes as Bitcoin, the largest cryptocurrency, has erased its roughly 30% advance for 2025 through early October, when it hit a record high. Meanwhile, so-called altcoins, which are seen as a barometer of risk appetite in the most speculative corners of crypto, have trailed their larger counterparts by a wide margin since early 2024.

This reverses a trend seen during past bull markets, where the small-cap index often outpaced its large-cap counterpart as traders sought high-risk, high-reward bets. However, that dynamic shifted last year after the US approved Bitcoin and Ether exchange-traded products, which became a focal point for institutional flows.

Retail traders are now learning lessons from previous cycles, according to Pratik Kala, portfolio manager at Australia-based hedge fund Apollo Crypto. "A rising tide doesn't lift all boats -- it only lifts the quality ones," he said, indicating that investors are becoming more selective in their crypto investments.

The altcoin malaise also risks derailing issuers' plans to list a host of exchange-traded funds tied to smaller cryptocurrencies, with roughly 130 such ETF applications pending with the US Securities and Exchange Commission as of mid-October.