Week in Review: Total Crypto Market Cap Falls to 2018 Low, Recovers Slightly
The total market cap of the entire cryptocurrency space hit a new low on Tuesday, falling to about $189 billion.
This was the first time the total market cap has been under $200 billion since November 3rd, 2017, when the market surged to a new all time high of $202 billion. On that day, Bitcoin traded in the $7,400 range, which was also a new all time high at the time. On Tuesday, however, the price of Bitcoin hovered around $6,200.
Perhaps the most recent notable news in the space came last month when the SEC rejected brothers Cameron and Tyler Winkelvoss’s most recent proposal for a cryptocurrency ETF. But beyond this announcement, it does not seem as if there is a direct catalyst for the the current drop in the market. Some analysts are suggesting it can simply be attributed to panic selling.
One trend seemingly tied to the market’s recent dip is the rise in Bitcoin dominance — the percentage of the crypto market comprised of Bitcoin. On Saturday, the dominance rate rose above 50% for the first time in 2018.
When this occurred last, on December 19th, 2017, the market was in a very different place.
The price of Bitcoin was around $17,600, just two days off its all time high just under $20,000. What followed was a massive altcoin rally that brought the market cap to a peak of over $830 billion on January 7th, 2018, as Bitcoin dominance fell. Some are calling for a similar spike in the altcoin market following this current rise in Bitcoin dominance, while others envision an “extinction-level event” for cryptoassets.
Since Tuesday, the market has been steadily climbing, but it still faces an uphill battle to enter into a new bull market.