It has been an exciting weekend for all cryptocurrencies so far. While most altcoins have lost all of their gains over the past 36 hours, the bigger picture shouldn’t be overlooked whatsoever. All cryptocurrencies in circulation are worth over $200bn right now. A major step forward from the $40bn market cap earlier this year. It is evident Bitcoin is still the king of the hill and that situation will not change whatsoever. Cryptocurrencies are Booming Despite Volatility Even though the overall cryptocurrency market cap has finally surpassed the $200bn mark, these markets aren’t less volatile than ever before. In fact,
It has been an exciting weekend for all cryptocurrencies so far. While most altcoins have lost all of their gains over the past 36 hours, the bigger picture shouldn’t be overlooked whatsoever. All cryptocurrencies in circulation are worth over $200bn right now. A major step forward from the $40bn market cap earlier this year. It is evident Bitcoin is still the king of the hill and that situation will not change whatsoever.
Cryptocurrencies are Booming Despite Volatility
Even though the overall cryptocurrency market cap has finally surpassed the $200bn mark, these markets aren’t less volatile than ever before. In fact, there is more volatility these past few weeks compared to what we have seen throughout most of 2017. This situation is mainly affecting altcoins, though, as they are all struggling to maintain their price levels right now.
Although things may look pretty bleak for most altcoins right now, they are also a contributing factor to the $200bn total market cap. Bitcoin represents the vast majority of this cap, of course, as all BTC in circulation are worth over $125bn right now. That in itself is a pretty spectacular number, considering the total cryptocurrency market cap was under $50bn not too long ago. Things have evolved in a positive direction in this regard.
This also means the Bitcoin Dominance Index has been pushed up once again. Right now, this index sits at 62.5%, clearly indicating how Bitcoin is the go-to cryptocurrency and little else matters these days. It is only a matter of time until the top altcoins recover in value, although this process may take some time. The Bitcoin price is still mainly driven by speculation, and it is very likely we will see a price correction around the SegWit2x hard fork.
Interestingly enough, there are only two cryptocurrencies with a market cap above $10bn right now. Ethereum still sits in second place, with a cap of just under $28.5bn. Bitcoin Cash is still third, but its cap lost nearly $1.3bn over the past 48 hours. This is not entirely surprising, as the value of BCH was heavily inflated all week long. Things are now returning to normal, with a trading volume that is drying up pretty quickly. It will be interesting to see which coin will be next to attempt and rival Ethereum in terms of market cap.
It is evident this is a major milestone for cryptocurrency as a whole. While a total valuation of $200bn may seem like a lot, it is still a drop in the bucket when looking at traditional companies and instruments. Until cryptocurrency can reach $1tn, very few people will pay attention to developments like these. The growth through 2017 has been pretty spectacular, to say the very least. Going from under $20bn on January 1, 2017, all the way to $201bn on November 5, 2017, is incredibly remarkable.
As is always the case, the bigger question is whether or not this momentum can be sustained for the long run. While some people predict the Bitcoin price will keep on rising, it is doubtful there won’t be a correction whatsoever. Especially the Bitcoin price will see a retrace of some sorts, although it remains to be seen how things will play out. When this correction happens, altcoins will pick up the slack again, though.