Bitcoin, VeChain, NEM

The current cryptocurrency market behavior is showing striking similarities to the last two years in terms of market capitalization and volumes traded in the market. The quick rise in price late last year and early this year was by far the most interesting period in the cryptoverse but going by charts in the previous years, we may soon see a bigger bull run than it in the coming months. In this article we look at the quarterly performance of the market since 2014. The article will give a brief description of the quarters and reasons as to why the market will boom in the coming Q3 2018 and Q4 2018 periods.

Total Market capitalization (2014-2017)

The annual market capitalization of cryptocurrencies started to exponentially grow at the start 2014 when the industry started gaining mainstream media attention. The market capitalization of the total number of coins increased from an annual high of $13.592 Billion USD in 2014 to over $322 billion USD at the current moment. It is however fair to note that the number of cryptocurrencies in the market also exponentially grew to over 1600 coins from less than 500 in 2014.

Looking closely at the charts, there seems to be a correlation of some kind in how the market capitalization grows in each quarter. We explain the correlation in each period and why Q3/Q4 in 2018 will be on a bullish momentum as never seen before.

Quarter 1 and 2 in previous years

The first quarter in each of the years, starts off at a high price as the market adjusts from the previous quarter gains. In 2014, the market capitalization hit the highest point of the year early in January with a total of $13.5 billion USD worth of cryptocurrencies in circulation. The whole market then went into correction losing over 50% of its value to close at $6 billlion at the end of Q1 2014.

In 2015, the situation was no  different with the market seeing negative returns across the first quarter with the total market cap plumenting by close to $2 billion from $5.5b to $3.9b during the period

The next two successive years, reversed the trend, as the total market capitalization increased by 14% and 35% in 2016 and 2017 respectively.

The second quarter, dubbed by many ‘The resurrection quarter’ showed increased gains in each of the four years except 2014. After a long sell off period in Q1, investors look back into buying the currencies in anticipation for Q3 and Q4.

Q2 2018 Total market capitalization

We are now closing the second third of Q2 2018 and the market is reviving after a small dip in price in the past 3 days. Just as the previous years have shown, Q2 revives the bull in the market leading to higher prices and a higher market cap. The market value of cryptocurrencies has grown from $244 billion at the start of the quarter to over $330 billion as at time of writing. This represents close to $100b in increase representing 35% increase so far in the market capitalization.


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