Why has the total market cap (of all coins) been on a steady decline since April?
[Here is a plot](https://imgur.com/a/BgjfBXV) I made of the total market cap, since April.
The red line is the total market cap (in billions of $) of every coin. The blue line is the market cap of the top 20 coins (sorted by market cap). The yellow line is the percentage of the total market cap that is made from just the top 20 coins. The green line is just a trend for the total market cap.
All data comes from [https://coinmarketcap.com](https://coinmarketcap.com).
What’s been going on with the market? Leading into this year (Jan/Feb), there were unbelievable climbs in the total market cap, but since the end of April, it’s been basically nothing but decline – with today being the lowest yet, and probably tomorrow being lower still.
Guys it is quite simple isn‘t it. Around october last year crypto opened up as a topic for the general public: stories came out with people being millionaires due to cryptos, i don‘t know how many hundreds of youtube channels have been created and that was like the first step into mass adoption. It was the point that people like me enter the market without real technological knowledge and understanding. Then reality hit, many people left the market who understood that bitcoin at 20k is surely not going to happen so soon again and chinese new year, contracts running out and my guess is SINCE then no new people out of the general public have intention into investing into crypto because a) the red sea and chance of loosing money, b) all the FUD around it by mass media and c) also just the current market which doesn‘t promise shit. And people get tired of seeing -50% portfolio and just leave as soon as they can I guess.
Just the booms and busts and a volatile market. Hype and FOMO had a huge part to play in the high prices of Jan 18. Tether had its part to play also, to what extent is up for debate. Futures had a huge impact, we saw the reversal in price the moment they were introduced.
I remain hugely optimistic, blockchain has massive potential and genuinely solves many real world inefficiencies. However it can’t grow as quickly as it did in January, a correction was due and promptly arrived.
As we see greater regulation, acceptance and realisation from politicians, influences and decisions makers then we may see a reversal of this current trend. Along with that you will see an influx of money from institutional investors will most likely turn this bull market around.
As for when, your guess is as good as mine. But as an investor, the sooner the better.
You answered your own question: there were almost unbelievable climbs in price so the market is going to correct, the more parabolic the run up, they more drawn out and complicated the correction.
Think about all those people that bought on the way up, they are weak hands that fomo in without any knowledge, so when the price goes down they get shaken out, but because of the sheer size of the run up it takes more time to shake loose all those weak hands. (because there are so many.)
Once the market corrects back to a price that creates buying pressure the cycle will start anew and somebody will be asking this question again in a couple of years while everyone here now will have taken profits and be ready for it all to happen again because they know that human behavior is generally predictable and destined to repeat.
We are in a bear market
* “[We’ll tame Bitcoin](https://www.coindesk.com/cme-groups-leo-melamed-well-tame-bitcoin/)”
* “[Tether just added $*x* amount again](https://mobile.twitter.com/bitfinexed?lang=en)” on a daily basis for the entirety of 2017.
CMC is not accurate lately
Is this really a serious question?!?!? I would have thought it was plainly obvious why the total market cap has been dropping…..people have been pulling their money out of cryptos after the bubble burst.
It took you so may months to notice that the bubble is bursting? Did you notice that BTC dropped 3x only now?
More sellers then buyers..
Honestly, I am kinda blown away by the sheer number of stupid people in crypto. Frankly, I am surprised some of these people were able to actually figure out how to even buy alt coins. Nothing makes this more clear than shitcoins that are doing well while real problem solvers suffer, simply because they dont sound ‘sexy’. I think ‘smart money’ that isnt as succeptible to FUD and FOMO will definitely help to stabilize the market and then we can enjoy some solid, organic growth.
why is the sky blue
Because they are all overpriced scams.