Although the second half of the year was expected to come with a more positive development for cryptocurrencies, no significant catalyzer for a strong bullish move appeared and all major tokens continued to be subdued. Trading crypto currency had been much harder, due to shrinking volatility and choppier markets and even though we are in November, no significant fundamental change appears on the horizon.
Market cap sideways
Since mid-August to the current date, the global cryptocurrency market cap had been fluctuating between $183 billion and $238 billion, the narrowest range since the beginning of 2017. Looking at the chart below, we can actually see the diminishing volatility as the optimism around digital currencies slowly faded.
Alt text: cryptocurrency market cap
Although trading crypto currency had been tricky during this period, let’s take a brief look at some of the most important cryptocurrencies to see whether there are some hopes for the 2018 end or for the first quarter of 2019.
Despite the drop in market cap we saw this year, Bitcoin continues to be one of the most favored cryptocurrencies. It accounts for 53% of the total market cap, the entire supply being valued at $97.8 billion.
It’s interesting to note that the Bitcoin price had managed to hold ground, despite the recent slump that led the price towards the 5,500 area.
The past few months had been full of expectations for the first Bitcoin ETF, but no company had managed to get an approval from the United States’ Securities and Exchange Commission. We will also have the recently-launched Bakkt platform offering another Bitcoin futures contract for trading on December 12th, this one being the only significant event for the end of 2018.
Probably the biggest disappointment in 2018 comes from Ethereum, which is now 85% lower compared to its peak. Even though it is the platform which gave birth to some amazing projects like Aragon, Everex, Alice, Etherisc, and many, from a price perspective Ethereum lost significant ground compared to Bitcoin, with a current market cap of approx. $21 billion.
Trading activity contracted sharply since September 11th and the price currently sits around 204 US dollars per piece.
As always, the entire market is expected to pop higher when Bitcoin will do it. Ethereum should not be an exception, so as soon as Bitcoin will start to recover, the other tokens could follow the same path, due to the strong positive correlation.