The total market capitalization for all cryptocurrencies has just fallen to its lowest point in 2018.
The developments are coming after the US Securities and Exchange Commission (SEC) has delayed a decision on a proposed bitcoin exchange fund (ETF). The news triggered a market reaction, sending the total value of all cryptocurrencies to $ 227.8 billion on Wednesday – at the lowest level since November 2017 – according to CoinMarketCap data.
The decline to the nine-month lows marks a 10.7% depreciation on a 24-hour basis. At the time of the press, market capitalization had slightly increased to $ 228.6 billion.
Although the decision of the ETF only concerns bitcoin, many alternative cryptocurrencies are recording worse losses than the world's largest cryptocurrency by market capitalization, reporting worsening risk sentiment in the market.
The increase in the bitcoin dominance rate – an indicator that tracks the percentage of total encryption capitalization conferred by the major cryptocurrency – to a maximum of eight months of 48.6% also suggests that investors are venturing out of alternative cryptocurrencies and into bitcoins, and then probably on fiat currency.
The decrease or difference between the total market capitalization of all cryptocurrencies except bitcoin and the market capitalization of BTC is also signaling a reduction in the demand for high-risk alternative cryptocurrencies.
At the time of printing, the total market capitalization of all cryptocurrencies excluding bitcoin is slightly higher than $ 118 billion – at a minimum of 8.5 months – while the total capitalization of bitcoin is Topping $ 111 billion, a figure seen last time less than a month ago and above its annual minimum of $ 99,915,112,929, according to CoinMarketCap.
Meanwhile, the dominance rate of BTC is around 48.9% and could rise to 50% if risk aversion worsens, increasing the demand for well-established cryptocurrencies like BTC.
Disclosure: The author retains BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.
Image via Shutterstock
This article is intended as news to inform our readers of various events and developments that influence, or could influence in the future, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and does not provide, sufficient information to form the basis for an investment decision, and you should not rely on such information for this purpose. The information presented here is accurate only at the date and has not been prepared by a research analyst or other investment professionals. You should look for more information about the merits and risks of investing in any cryptocurrency before deciding to buy or sell such instruments.
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