• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Breaking News: HYPE Heats Up: Major Company Adds Hyperliquid to Its Crypto Treasury Strategy
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Bitcoinist.com
No Result
View All Result
Breaking News: HYPE Heats Up: Major Company Adds Hyperliquid to Its Crypto Treasury Strategy

5 Factors That Extinguished the Crypto Market in 2018

Georgi Georgiev
by Georgi Georgiev
6 years ago
·
Posted in News, Bitcoin Businesses, Blockchain, Companies, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Despite the price slump, one cryptocurrency company remains entirely bullish, identifying the reasons for the market’s weak performance YTD. 


The entire cryptocurrency market has been in decline since the beginning of 2018. Peaking at almost $800 billion in January, the market capitalization currently stands at slightly upwards of $200 billion.

However, Distributed Global, a financial company specializing in digital as well as blockchain-based assets, provided insights into current market woes and why it expects it to bounce back.

What Comprises the Cryptocurrency Capital Pool?

The company explains that retail investors were responsible for 300 percent growth of the entire market capitalization at the end of 2017. Jonathan Cheesman, Partner at Distributed Global, writes:

The “get rich quick” retail inflow in late 2017 was the largest capital inflow that crypto has ever seen, as the aggregated market cap grew by 300% in 3 months to January 6th this year! FOMO was a huge driver and unfortunately, most of the purchases are now underwater.

Traditional institutional investors, on the other hand, have been fairly reluctant to enter the space until now due to regulatory uncertainty, lack of custody and insurance services, data quality, among other factors.

But now the firm says that the source of fresh capital inflows is coming from institutional cryptocurrency investors – specialized hedge funds.

This follows as Bitcoinist reported that cryptocurrency hedge funds have been launching at a record pace in 2018. However, the total amount of digital assets under their management account for a fraction of the total market cap.

“The issues facing institutional investors are being addressed and I would argue there has been progress from the regulatory side and significant progress from the custody side,” explains Cheesman.

That said, we are not yet in a place where they feel comfortable participating and the price momentum is far from encouraging.

What’s Causing Downward Pressure on Prices?

Cheesman goes on to analyze the capital leaks, which is putting downward pressure on prices. The author holds that a lot of the early stage investing done through the year is currently locked up as investors are provided with their tokens on a pre-determined vesting schedule. This implies that a substantial amount of supply will be sold onto the market sometime in the future.

According to Distributed Global, mining is the most persistent supply channel for proof-of-work (PoW) dominated environments and inflation causes downward pressure. However, miner sales are difficult to predict. Supposedly, miners are at least covering their expenses, selling over 50 percent on average, according to the financial firm.

Fees from exchanges also form a serious inflow, according to Distributed Global. The commission charged by centralized exchanges is mostly taken in cryptocurrencies but it’s uncertain how much of it is actually sold for fiat. From a business risk perspective, it would be dangerous for the exchanges to hold the cryptocurrency, according to Cheesman.

Binance, the world’s largest cryptocurrency exchange by means of traded volumes, is reportedly on track to see profits of as much as $1 billion in 2018. At the same time, there are over 500 cryptocurrency exchanges currently operating.

Feeling Financial Pressure from Price Drop

Hence, sales of cryptocurrency earned from fees could outweigh those of miners.

Another factor that causes flow pressure according to the company is taxes. The negative cash flow, as well as the sheer hurdles of accounting for these taxes, could also act as a barrier for retail investors.

Initial Coin Offerings (ICOs) also had a stellar run in the first two quarters of 2018, raising more than $12b. With a major portion of the big projects such as Tezos, Telegram, and EOS, behind, the demand for ETH will have to be met by utility rather than as a crowdsale conduit.

What is more, there is growing evidence that projects who raised ETH are starting to liquidate it, hence creating putting further pressure on prices across the board.

Bullish Nevertheless

All of the above causes the company to hold that the current price momentum poorly reflects the momentum of the technology underlying the space. Distributed Global also points out that hype cycles are unavoidable as the given nascent market is still dominated by those who are actually building the technology.

Yet, the big picture seems fairly undeniable – there is public demand for trustless peer-to-peer exchange and for decentralization. In other words, Distributed Global, says that:

Once the door is opened to Mr. Market, it can’t be shut.

Where do you see the cryptocurrency market going in 2018? Let us know in the comments below!


Images courtesy of Shutterstock

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Georgi Georgiev

Georgi Georgiev

Follow

Full Profile

Related Posts

Crypto

Crypto Case Cracks Open Police Conspiracy In LA—Details

8 hours ago
Coinbase

‘Pure Misinformation’: Coinbase Denies Role In Leak Tying Binance To Trump Coin

1 day ago
cena bitcoinu nove historicke maximum ATH 123 tisíc dolárov

Cena Bitcoinu dnes vyskočila nad 123 000 $. Začína „krypto týždeň“

2 days ago
QFSCOIN Launches High-Yield Mining Contracts And Allows Global Investors To Earn Bitcoin And Dogecoin

Regulated By US Law And SEC: QFSCOIN Launches High-Yield Mining Contracts And Allows Global Investors To Earn Bitcoin And Dogecoin

3 weeks ago
Ceasefire

BREAKING – Iran-Israel Ceasefire Sparks Crypto Bounce–Details

3 weeks ago
TikTok

TikTok Fires Back: No TRUMP Coin Buys, Despite Congressman’s Claims

3 weeks ago
Please login to join discussion

Premium Sponsors

Press Releases

  • Start a Dogecoin miner using Bitcoin and earn $4336 in...

    1 hour ago
  • ...

    1 hour ago
  • bepminer

    bepMINER subverts tradition: AI-driven efficient mining...

    3 hours ago
  • MEXC Research Report Unveils 2025 ROI Benchmarks and...

    6 hours ago
  • Earn $3600 a Day – Start a Bitcoin Miner Using...

    14 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.