Whether the Market Will Recover. Industry Capitalization Has Fallen to a New Low
The total value of cryptocurrencies fell to $219 billion, the last time it was the same low in November last year. Digital money has lost 73% of its price in seven months.
On Thursday, August 9, the total capitalization of the cryptocurrency industry fell to an annual low of $219 billion. At the end of July, it exceeded $300 billion, and in January it was above $830 billion — in a few months digital money had fallen by 73%.
This was caused by the fall in the price of bitcoin. Now, the coin is trading at $6300, well below the historical maximum value of $20 000, which was set in December 2017. Following the first cryptocurrency, altcoins fell in price — the average market price of Ethereum is $355. The last time it was the same low in November last year.
Ripple costs $0.33, which is almost 11 times lower than the record of $3.73. The rate of the EOS token, which had risen to $21 at the end of April, fell almost four times within three months. Now, it is at the level of $5.5. Altcoins fell more than bitcoin, so its market share increased to 49%.
The exchange rate of most cryptocurrencies has been falling during 2018. This could have been influenced by several factors: pressure from governments that are trying to start controlling the market, hacks of exchanges and cryptocurrency wallets, a decrease in investor interest and trading volume.
The last time bitcoin fell sharply after the US securities and exchange commission (SEC) had postponed the decision on launching bitcoin-ETF. The second meeting will be held on September 30, but many experts, such as the head of Pantera Capital Dan Morehead and analysts of a large Canadian company Canaccord, are sure that this year we should not expect the approval of the new investment tool.