Market capitalisation has often been a significant indicator of the healthiness of the general state of the cryptocurrency market. This expresses the overall value of all the coins, and hence the value of the entire market. At the peak of the bull-run in January 2018, with practically every coin at all-time highs, the market cap was over $800 billion. This fell to as low as the $100bn mark around mid-December 2018. Perhaps key for psychological reasons, it did not fall below $100bn.
The fall from $800bn to $100bn illustrates just how devastating the bear market has been. With many investors fleeing the market, confidence in the cryptocurrency market, (not aided by consistently negative media coverage) also fell drastically. However, prices have seen a very slow but steady incline recently, with Bitcoin not only managing to hit the $5000 mark, but it has also held. The rest of the market has responded positively, with many altcoins seeing significant rises in price, and the general state of the market looking somewhat healthier than it has in recent times. Bitcoin, Ethereum and Litecoin have all seen steady price increases during this time, where XRP seem to be stagnating slightly within the mid-$0.30’s region.
The market cap rose to $185bn this past week, a five-month high. While still being a way off any all-time highs, many investors are starting to feel that the long-awaited “bottom” has been found and that prices will not have much further to fall. Some are already speculating that prices will now start steadily increasing, and a much longer bull market may have already discretely begun. With a market cap of $185bn having been established, many will want to see $200bn and higher sooner, rather than later.
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