Capitalization of Cryptocurrency Markets Loses 59% in Q1 2018

 The first quarter of 2018 dealt heavy losses to the cryptocurrency markets, with Coinmarketcap data indicating that the capitalization of the combined crypto markets has dropped by 59% since the start of January. Q1 2018 has also been among the bloodiest quarters in recent memory for the bitcoin markets – with BTC suffering an approximately 50% loss in value since the start of 2018. Despite bitcoin’s heavy drop, it has performed better than many leading altcoins – many which have slumped by over 70% since January.  

Q1 Produces Extreme Volatility for Bitcoin Markets

 According to price action on Bitstamp, BTC opened the quarter trading between $13,000 and $14,000 on the first of January. Over the course of the following week, BTC made quick gains of more than 20% to establish 2018’s price high of roughly $17,500. 

 After the high of $17,500, the BTC markets slumped by approximately 66% in a single month, establishing 2018’s current low of roughly $5,900 on the 6th of February. The price then almost doubled in just two weeks, before failing to break above resistance at just below the $12,000 area twice. The failure to break resistance precipitated a drop of approximately 40% during March, with BTC prices currently hovering at approximately $6,500.  

Crypto Market Capitalization Shrinks

 According to Coinmarketcap, which excludes data from Korean exchanges, the total market capitalization of the combined cryptocurrency markets was approximately $610 billion at the start of January, before quickly ballooning to roughly $820 billion on January 8th. Since the high of $820 billion, the capitalization of the crypto markets has dropped by almost 70% and is currently establishing a low of $250 billion for 2018. 

 The market capitalization of bitcoin was approximately $236 billion at the start of January, and has since fluctuated within a range of between $300 billion, and $100 billion. The total capitalization of bitcoin is estimated to be $115 billion as of this writing.

BTC Market Dominance Strengthens

Despite the heavy losses, Q1 also saw bitcoin recapture a market dominance of over 40% – with bitcoin boasting a market dominance of approximately 45% as of this writing.At the start of January, BTC accounted for approximately 38%, before dropping to establish a historic low of almost 32% during the following fortnight. Throughout February and March bitcoin made consistent gains in market share over altcoins, regaining approximately 10% in relative market share in just two months.