The cryptocurrency market cap is back up as it officially crossed $500 billion on February 17th. Out of the top 5 cryptocurrencies including Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin, the majority of them have increased in value. Bitcoin’s price managed to stay over $10,000 while Ethereum went slightly above $960, both of their values increasing by 7.57% and 2.94% respectively, in 24 hours.
Cryptocurrency Market Cap at the Beginning of 2018
The year began slowly, with the total market cap valued at $642 billion on January 2nd. Bitcoin’s price remained at $13,792 while Ethereum surpassed $900. But nine days later, the cryptocurrency market cap dropped to $630 billion. The market soon recovered quickly as it went over $720 billion on January 12th. However, the increase was short-lived because it then started declining suddenly from around $540 billion on January 16th to $474 billion the next day. Cryptocurrencies were extremely volatile during this period, as the cap rose once more to $636 billion on January 21st. The month ended with the market cap resting at $491 billion; Bitcoin’s price at $10,000 and Ethereum reaching $1,100.
February: A Crypto Nightmare
While market caps and prices were showing no signs of going back to their original value, they surprised the entire world when the total cryptocurrency cap fell to $285 billion on February 6th. Bitcoin’s price dropped to a shocking value of $6,200 and Ethereum went as low as $597. Analysts explained that the sudden decline was a result of bans on cryptocurrencies by various countries as well as companies. For instance, J.P. Morgan Chase, Bank of America and Citigroup and other banks prohibited the use of credit cards to buy cryptocurrencies, South Korea banned unknown cryptocurrency trading accounts and India’s finance minister declared that India didn’t consider cryptocurrencies as ‘legal tender or coin’.
Despite various speculation, the market cap has showed signs of recovery, reaching $441 billion on February 10th and then finally crossing $500 billion yesterday. At the time of writing, Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin’s prices are $10,882.30, $969.62, $1.20, $1,536.63 and $230.09 respectively.
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