In January 2018, the price of Bitcoin was just under $20,000 and the number of coins, ICOs and new ideas were cascading into a market in which traders expected 75x return in 6 months. While there are some coins that are still traded, Bitcoin still having the highest market share and market capitalization – note that just 15 coins now have a market cap of $1 billion plus – the digital currency world is down 75 percent from the January highs (figures from CoinMarketCap). This market is not dead but many coins are trading at 1 cent. Have a loo at our audiovisual presentation on rotation and winners. Note that in January 2018, there were 39 coins with market capitalization of $1 billion or more.
The total market capitalization for Cryptocurrencies in January was just at $800 billion, now it is closer to $200 billion.
The most troubling point is that many tokens that were used to fund applications, have not given the benefits that many market participants expected. Security, blockchain solutions and a host of other promising new ideas and technologies were expected but real life usage is still low. We at Classiarius have focused on the next generation of technologies as predicting the next idea or the next Google or Facebook is almost impossible. Still, we believe blockchain does have a future.
But as the speculative component of the market fades, there long-term investors are still around and are being more selective with their funds. One problem that the crypto-world suffered from was rogue groups of traders who pumped up a cryptocurrency to unsustainable levels then sold for profit. This kind of market behavior, combined with organized crime participation, and bogus ICOs, encouraged aggressive involvement by regulators. When regulators started paying attention, the idea of new ICOs and ETFs (several tried to issue and failed), coming to market, started to become a more difficult process. The market is now maturing, and weak currencies are fading due to Darwinism.
We are looking for new ideas, new ways of identifying new technologies. We do see a rally in digital currencies in the coming months. Look for more from Classiarius.