We are in 2018 and the cryptocurrency market is heading towards the $1 trillion dollars’ mark. The last year the cryptocurrency market experienced an incredible growth, passing from $17 billion dollars and reaching $643 billion dollars. At the moment of writing this article, the cryptocurrency market could soon cross $850 billion dollars.
Why is the Market Growing so Fast?
Between September 2017 and January 2018, the cryptocurrency market grew more than 6 times. What happened that so much money arrived at the markets? Since September, Bitcoin and most of the known cryptocurrencies like Ethereum, Litecoin and Ripple, have skyrocketed. The main reason of this price surge was the important coverage that mainstream news sources gave to cryptocurrencies.
When the Chicago Board Options Exchange and the Chicago Mercantile Exchange decided to offer Bitcoin futures, the media started to cover more topics regarding cryptocurrencies. Besides that, institutional investors, like banks, hedge funds and wealthy individuals started to place money in cryptocurrencies. It is a high risk investment, but it certainly gives an important return.
Many of the new investors wanted to be part of the game before it was too late. During the last part of the last year, investments were placed on settled cryptocurrencies. At the moment, we see that virtual currencies that with less time in the markets and less exposure are surging exponentially.
This situation can be explained simply by knowing that a lot of investors wanted to have the same ROI as the early investors in Bitcoin. It is not clear whether Bitcoin, Ethereum and Litecoin could keep growing and reach a similar growth rate than during the last years. But new cheap alt-coins could give investors this fast money that some of them expect to have.
Can we Reach $1 Trillion Dollars
Because of this surge, Bitcoin has lost its supremacy. One year ago, Bitcoin had 86,6 percent of the total cryptocurrency market capitalization. At the moment, it only owns 34,6 percent, just a fraction of what it had one year ago. Bitcoin lost part of its dominance when Ethereum and Ripple started to grow between March and June. Since then, Bitcoin recovered part of the lost market reaching almost 65 percent of the total market value in December. Since then, the market capitalization of cryptocurrencies more than doubled. And since November it multiplied by five times!
If we don’t see this trend broken, in the coming days/weeks the market could reach $1 trillion dollars. We need to pay attention. The upward trend that alt-coins are experiencing could soon change direction. If it happens, Bitcoin could take the lead again and start to recover part of the market lost.
Bitcoin is used to be traded against several alt-coins, not the US Dollar. That’s why Bitcoin could experience a new price surge or a positive trend in the coming weeks if alt-coiners decide to take profits.
Tags:$1 trillion dollars1 trillion2018Alt-CoinAlt-CoinsbitcoinBTCCryptocurrency MarketETHEthereumLitecoinLTCMarket CapMarket CapitalizationrippleXRP