The cryptocurrency market experienced another brutal week of selling pressure as December 2018 continued to deliver pain to digital asset investors across the board. With the total market capitalization shedding over 15 percent in just seven days, the bearish momentum that had gripped the space since the start of the year showed few signs of abating.
TL;DR
- Bitcoin fell 14.82% during the week, dropping below $3,500 to trade around $3,420
- Ethereum suffered a staggering 23.19% weekly loss, briefly dipping under $90
- XRP lost 15.77%, hovering just above $0.30
- Only a handful of top-100 coins posted gains, including Bitcoin SV, Waves, and Factom
- Wyoming passed a blockchain-friendly banking bill 13-1 despite industry opposition
Bitcoin Breaks Key Support Levels
Bitcoin, the world’s largest cryptocurrency by market capitalization, continued its downward trajectory throughout the first week of December 2018. Trading at approximately $3,419.94 according to CoinMarketCap data, BTC had lost nearly 15 percent of its value over the preceding seven days alone. The coin’s market capitalization stood at roughly $59.5 billion, with 24-hour trading volumes exceeding $6.8 billion.
The slide below the psychologically significant $3,500 mark represented a new yearly low for Bitcoin, which had begun 2018 trading near $13,000 following its historic run to nearly $20,000 in December 2017. The sell-off was attributed to a combination of regulatory uncertainty, declining retail interest, and broader macroeconomic headwinds affecting risk assets globally.
Investor sentiment had reached what many analysts described as a state of capitulation. With over 80 percent erased from Bitcoin’s all-time high, even the most ardent bulls were struggling to identify a clear bottom. The fear gripping the market was palpable, with trading volumes spiking as positions were liquidated across major exchanges.
Ethereum and Altcoins Take Heavier Losses
While Bitcoin’s decline was steep, the damage inflicted on alternative cryptocurrencies was even more severe. Ethereum, the second-largest altcoin by market cap, endured a punishing 23.19% weekly decline that pushed its price down to approximately $93.29. For a network that many had hailed as the foundation of a decentralized internet, the sub-$100 valuation represented a humbling comedown.
Ethereum’s market capitalization fell to approximately $9.67 billion, with the altcoin’s decline accelerated by concerns over ICO sell-offs and the broader unwinding of speculative positions that had accumulated during the 2017 boom. Projects that had raised billions in ETH during their token sales were reportedly liquidating holdings to cover operational costs, creating additional downward pressure on the price.
XRP, which had briefly overtaken Ethereum for the number two spot in market capitalization during the preceding weeks, also suffered significant losses. The Ripple-affiliated token dropped 15.77% to trade at approximately $0.302, with a market cap of around $12.3 billion. Despite the price decline, XRP’s relatively smaller losses compared to Ethereum allowed it to maintain a competitive position in the rankings.
Other major altcoins fared no better. Bitcoin Cash plunged nearly 38% over the week to approximately $106.85, EOS dropped over 39% to roughly $1.74, and Litecoin shed 21% to trade around $25.27. The altcoin bloodbath was nearly universal, with only a handful of top-100 cryptocurrencies managing to post gains.
Rare Winners in a Sea of Red
In a market where virtually every major cryptocurrency was deep in the red, a few notable exceptions managed to buck the trend. Bitcoin SV, the cryptocurrency born from the November 2018 hard fork of Bitcoin Cash, gained nearly 10% over the week, trading at around $103.88. Waves posted an impressive 25.75% gain, while Factom climbed 12.75% and Huobi Token added 4.27%.
These outliers, however, did little to comfort the vast majority of cryptocurrency investors who watched their portfolios shrink further during what was already one of the most punishing bear markets in the industry’s young history.
Wyoming Emerges as Blockchain Haven
Amid the market carnage, there was at least one piece of positive regulatory news. Wyoming’s legislative committee voted 13-1 to advance a groundbreaking bill that would allow banks in the state to provide services for blockchain assets. The legislation was the product of a dedicated Blockchain Task Force created to identify and address the challenges facing blockchain entrepreneurs.
The vote marked the latest in a series of pro-blockchain moves by Wyoming, which had already passed several blockchain-friendly bills in February 2018. The Cowboy State was quietly positioning itself as the most crypto-friendly jurisdiction in the United States, providing a stark contrast to the regulatory uncertainty gripping much of the rest of the country.
Billionaire Investor Stays the Course
Not everyone was running for the exits. Billionaire investor Jim Breyer, speaking at Fortune’s 2018 Global Tech Forum, acknowledged that the crypto industry was “close to a nuclear winter right now” but remained firmly bullish on the long-term prospects of the technology. Breyer argued that the space was filled with “the best computer scientists and Ph.D. students and postdocs,” adding emphatically that “you don’t want to bet against the best and brightest in the world.”
Breyer’s comments provided a reminder that while the market was in freefall, the underlying technological development continued to attract top talent and serious institutional interest beneath the surface of price charts and panic headlines.
Why This Matters
The first week of December 2018 marked one of the darkest periods in cryptocurrency market history, with Bitcoin hitting a new yearly low and the total market capitalization continuing its precipitous decline. However, beneath the surface of collapsing prices, important structural developments were taking shape. Wyoming’s proactive regulatory framework would eventually serve as a model for other states, and the resolve of long-term investors like Jim Breyer underscored the fact that bear markets, however painful, are temporary. The infrastructure being built during this “nuclear winter” would lay the groundwork for the next cycle of growth and adoption.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and readers should conduct their own research before making any investment decisions. Past performance is not indicative of future results.
wyoming passing a blockchain banking bill 13-1 while everything collapsed. forward thinking state honestly
Wyoming has been the most crypto-friendly state since 2018 and nobody talks about it. their SPDI banking framework was years ahead of anything at the federal level
WyomingPunk and caitlin long pushed for SPDI which eventually became custody frameworks other states copied. wyoming punched way above its weight
23% weekly loss on eth. the ico hangover was brutal, projects dumping eth reserves nonstop
ICO projects had billions in ETH reserves and were selling into every bounce. it was a cascading liquidation with no bottom until ETH went under $90
fee_penguin_ the ICO treasury selling created a death spiral. ETH was being dumped by projects who raised in ETH but operated in USD. it was forced conversion at the worst time
xrp at 30 cents and still in the top 3. that coin has survived more death sentences than anything in crypto
BSV gaining while everything else bled. even in 2018 calvin ayre was propping up that nonsense
Marten V. xrp at 30 cents is still top 3. market cap is a weird metric when most supply is locked
capitulation_ XRP survived because Ripple kept dumping on retail the whole way down. survival and performance arent the same thing
ETH under $90 was the generational buy.ICO treasury selling masked real demand underneath