Crypto market capitalization surpasses $390 billion as Bitcoin dominance declines

On Tuesday, August 18, the aggregate cryptocurrency market capitalization rose to $393 billion. The last time such a level was seen was May 16, 2018, at the onset of the crypto-winter.

Data: CoinGecko

Along with the rise in capitalization, the Bitcoin dominance index fell to 57.7% — the lowest level since June 2019. The analogous figure for Ethereum rose to 12.3%, though at the start of the year it stood at around 7%.

Analysts say Bitcoin investors remain bullish. CoinDesk notes a decline in Bitcoin’s exchange reserves to a 21-month low.

“The decline in Bitcoin balances on spot exchanges suggests that investors intend to hold the asset. I consider this a sufficiently bullish signal,” said eToro analyst Simon Peters.

As confidence in the asset wanes, investors typically send their cryptocurrencies to exchanges to enable quick selling. For example, in the days leading up to the March market crash, Bitcoin exchange balances rose by 2% to a peak of 2,947,555 BTC.

Since then the price has risen by 200%, having updated to a new 2020 high on Monday, August 17. At one point, quotes neared $12,500, and the number of coins on exchanges fell by 11%.

At the time of writing, Bitcoin was trading slightly above $12,000.

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