The Bears are Stronger Than Ever and Wiping Billions Off the Table!
It was less than a month ago that we witnessed Bitcoin free-falling below $5,000 with no strong rebound after the sell-off. Cryptocurrencies now edge closer to prices not seen since mid-2017.
Other cryptocurrencies in the top ten, such as XRP and ETH, are down 4%, while BCH and BSV have lost up to 15% of their value in the last 24 hours and dropped several places in the ranks.
Today’s strongest performers in the top 100 cryptocurrencies boast mediocre gains compared to what we normally see in this sector (at the time of writing).
Total Market Cap Going Full Circle and a Possible Altcoin Season…
According to data provided by CoinMarketCap, the total market cap of the cryptocurrency sector stands at $102 billion once again, coming full circle after reaching dizzying heights almost twelve months ago of over $800 billion.
Bitcoin’s market cap share has vastly diminished in the last eighteen months, but that does not mean it has weakened against other cryptocurrencies. Many coins are still at a loss when valued against Bitcoin, rather than fiat currencies.
In the bull market frenzy, capital flowed through Bitcoin and into altcoins. Many refer to this as “altcoin season”, however, in the depths of this bear market, we now see the opposite happening.
Capital has been flowing back into Bitcoin over the course of 2018, likely because it remains the liquid gateway to fiat currencies and is considered the digital standard for cryptocurrencies and accounts for 55% of the total market cap of all digital assets.
Downtrends in Bitcoin’s market cap dominance usually give way to a rise in altcoin dominance, and sometimes higher altcoin prices in fiat terms. Many “experts” are now calling for the next altcoin season to begin, but in reality, this may not be so easy.
2018 has provided numerous dead cat bounces, and most altcoins could still lose a lot of value if intense sell-offs continue.
2019 will be an interesting year going forward…
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.