As we reach the last quarter of what’s been an eventful and at times uncertain year, one thing is clear: Volatility will not leave the crypto market alone!
Prices continue to decline causing the total market capitalization of all cryptocurrencies to fall below $200 billion with implied volatility rising to levels seen only few times since 2017’s exceptional boom.
As reported by CoinMarketCap, the total market cap has indeed dropped in value to reach $189 billion on Tuesday following successive days of market declines.
The market cap first rose above $200 billion in November 2017, a development spurred at the time by the listing of bitcoin futures products.
Despite this market cap recession, same data show sustained growth in what we call the “Bitcoin dominance rate”, or more properly the percentage of the total market cap that is contributed by the world’s largest cryptocurrency,
Notably, the “Bitcoin dominance rate” rose above 50 percent for the first time in 2018 reaching exactly 54 percent.
However, the real risk for individual investors is not a volatile market itself or the collapsing Crypto market cap— it is abandoning long-term financial goals that align with their life goals.
For that, we say that this is a vital moment for crypto investors to remain invested and to manage risks. They should be asking themselves if they are prepared for alternating stretches of volatility and high growth, with a long-term plan in mind.