The total market cap for all cryptocurrencies just fell to its lowest point this year.
The developments come after the US Securities and Exchange Commission (SEC) delay in the decision on it’s proposed BTC exchange-traded fund (ETF). It’s speculated that the news triggered a market reaction, ultimately sending the total value of all cryptocurrencies down to $228 billion on Wednesday – the lowest level since November 2017 – according to data from CoinMarketCap.
The drop to nine-month lows marks a 10.7 percent depreciation in last 24 hours. As of press time, the market capitalisation had risen back slightly to $228 billion.
Although the ETF decision is considered solely in regards to bitcoin, many alternative cryptocurrencies are printing worse losses than the world’s largest cryptocurrency by market cap, signaling worsening risk sentiment in the market.
The rise in the bitcoin dominance rate – an indicator that tracks the percent of the total crypto market capitalisation contributed by the leading cryptocurrency – to an eight-month high of 48.6 percent also suggests the investors are venturing out of alternative cryptocurrencies and into bitcoin, and then possibly on to fiat currency.
The falling spread or difference between the total market capitalisation of all cryptocurrencies except bitcoin and BTC’s market capitalisation is also signaling reduced demand for high-risk alternative cryptocurrencies.