Bitcoin Market Cap Trends & Findings

I have always believed that a significant indicator of what’s next to come can be found in patterns within % share of market cap.  Here you will see that since the start of the year (when institutional investment caused a significant spike in overall cryptocurrency market cap), an interesting pattern seems to be taking form specific to Bitcoin’s overall % share of market cap.  Every ~50% decline in BTC % of total market cap is followed by a ~50% run up in same metric with respect to BTC.

From a cryptocurrency market capitalization perspective, this translates into something interesting (albeit speculative).  Once we approach the 50% line (sell off), the market tends to drive upward due to investment in many of the more speculative alts at their newly discounted prices.  Bitcoin market cap therefore dives with respect to total market cap and we have a season of alt-coin break out.

I will continue testing this theory as time goes one and I can collect more data points.


Exchanges Close Registration Due to Demand

With the influx of demand for new cryptocurrencies and tokens, many exchanges have fully halted new registration due to site instability from trade volume.  This means that new cryptocurrency traders are going to have a hard time finding some of the coins that are accessible to early entrants into the market.

Here is the list of all exchanges that are not longer accepting new users:

If you’re one of those early adopters, the good news is that there’s a wave of demand on the horizon and it’s so vast that most of the world’s exchanges can’t handle the volume.  This also means that the real price and volume of most currencies are not fully reflected on websites such as Coinmarketcap and Cryptocompare.  For all of the business savvy people out there, this is a great opportunity to create decentralized exchanges that can scale to this volume. See Ether Delta for an example of this.