The Crypto Market Just Hit a Low for 2018

Cryptocurrency investors continue to turn risk averse as the total cryptocurrency market capitalization sinks to a new annual low.

AccessTimeIconAug 8, 2018 at 2:31 p.m. UTC
Updated Aug 16, 2021 at 12:06 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The total market capitalization for all cryptocurrencies just fell to its lowest point in 2018.

The developments come after the US Securities and Exchange Commission (SEC) delayed a decision on a proposed bitcoin exchange-traded fund (ETF). The news triggered a market reaction, ultimately sending the total value of all cryptocurrencies down to $227.8 billion on Wednesday – the lowest level since November 2017 – according to data from CoinMarketCap

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • The drop to nine-month lows marks a 10.7 percent depreciation on a 24-hour basis. As of press time, the market capitalization had risen back slightly to $228.6 billion.

    Although the ETF decision is solely in regards to bitcoin, many alternative cryptocurrencies are printing worse losses than the world's largest cryptocurrency by market cap, signaling worsening risk sentiment in the market.

    The rise in the bitcoin dominance rate – an indicator that tracks the percent of the total crypto market capitalization contributed by the leading cryptocurrency – to an eight-month high of 48.6 percent also suggests the investors are venturing out of alternative cryptocurrencies and into bitcoin, and then possibly on to fiat currency.

    The falling spread or difference between the total market capitalization of all cryptocurrencies except bitcoin and BTC's market capitalization is also signaling reduced demand for high-risk alternative cryptocurrencies.

    At press time, the total market capitalization of all cryptocurrencies excluding bitcoin is just over $118 billion – an 8.5 month low – whereas the total market cap of bitcoin is topping $111 billion, a figure last seen less than a month ago and above its annual low of $99,915,112,929, according to CoinMarketCap.

    Meanwhile, the BTC dominance rate is hovering around 48.9 percent and could rise to 50 percent if the risk aversion worsens, boosting demand for well-established cryptocurrencies like BTC.

    Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.

    Image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.