Bitcoin Market Cap Falls In 2017
While 2017 may have been a strong year for bitcoin and other cryptocurrencies, but the cryptocurrency is off to a rough start for 2018. Bitcoin’s market cap has fallen by more than $80 billion over the course of the last month.
Normally, the value of cryptocurrencies are discussed in relation to an individual coin, but the market cap can be a better judge of the overall health of the cryptocurrency market. Bitcoin began the year with a market cap of $200 billion, but has fallen to $143 billion as of the time of this reporting. Other currencies have taken similar hits though Ethereum has managed to weather the storm better than its competition.
Of course, this decline probably won’t come as much of a surprise to longtime watchers of the cryptocurrency market. The market has been unstable for several years. In 2017, the value of bitcoin seemed to be on a permanent upswing so those who decided to jump on the bandwagon last year may be in for a rude awakening.
The decline in the value of cryptocurrencies has several explanations. Consumer trust in the crypto market has likely been undermined by Facebook’s announcement that it was banning advertisements for cryptocurrencies and ICOs while it rooted out bad actors. Additionally, the investigations being conducted against major cryptocurrency exchanges likely do not help matters.
However, many of those who are experienced in the cryptocurrency market have advised worried customers to hold onto their coins rather than selling them. Of course, a lot of people selling off their coins will likely do even more harm to the overall market.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.