After a major surge of the total market cap of crypto as a whole to roughly $115 billion halfway june, it appears crypto is gradually cooling down.
The total market cap today is around $94 billion. The graph above shows a gradual trend down, with ofcourse the usual ups and downs. A loss of $20 billion in the last few weeks sounds intimidating, but it doesn't mean crypto has hit rough seas. This is probably simply a normal course of dynamics of trading on a large scale; large numbers of investors are selling off their profits, thus driving the price down. We saw similar movements in 2011, and in particular twice in 2013.
If you've bought in during or around the peak and now see your portfolio deep in red, don't despair ... ! Chances are high the market will turn bullish again on the longer term. I mean, I'm not a professional trader. But consider this:
- we've saw peaks followed by gradual cooldown several times before, and the next peak dwarfed the previous one.
- crypto is here to stay. Even the disasters of MtGox and Cryptsy didn't scare people off. As crypto gradually gains a stable foothold in society, we can assume the next rally is only a matter of time.
Long story short: if you're not immediately in need of invested money, HOLD. It'll probably pay off on the longer term ... !
Seeya!