What does rising market capitalization in cryptocurrency avenue mean amid struggling prices?
This year, bitcoin and other cryptocurrency price trend hasn’t been that desirable so far on the back of the news of US Securities and Exchange Commission’s (SEC) clampdown on ETF product approval decision. Bearish trend has been imminent as the pioneer cryptocurrency BTCUSD tumbled from the year highs of $17,252, ETHUSD dipped to the current $234.95 from the highs of $1,434.30, XRP slid from $3.30 to the current 0.5310 levels and XLM slumps from 0.4666 to the 0.265 levels.
Last week large cap altcoins outshone the traditional market leader Bitcoin, with Ripple (XRP), Ethereum (ETH) and Stellar (XLM) relishing big weeks with gains of 105%, 10% and 37%, respectively. Only BTC has been laggard with 3% up in market capitalization. Well, overall the entire crypto market capitalization grew by 8%.
Despite the robust bearish price trend of the industry, the market cap numbers seem to be little dubious thing that investors assume whatever the market is charging for a cryptocurrency company, is what it’s worth. While rising market cap measures what a company is worth on the open market, as well as the market’s perception of its future prospects, because it reflects what investors are willing to pay for the company.
The glimmer of growth generated a new wave of bullish optimism, and reinforced the idea that crypto may end 2018 with bull run, as new trading volume and external interest seemed to enter the market.
Currency Strength Index: FxWirePro’s hourly BTC USD spot index is struggling towards -123 levels (which is bearish), USD spot index is inching at -79 (bearish), while articulating (at 14:06 GMT). For more details on the index, please refer below weblink: