The cryptocurrency market continued its relentless slide on August 5, 2018, with altcoins bearing the brunt of a sell-off that has now stretched into a record seventh consecutive week. Stellar (XLM) and Cardano (ADA) were among the hardest hit, each losing roughly 20% over the prior seven days, as the total market capitalization of all cryptocurrencies fell to approximately $230 billion — its lowest level since November 2017.
TL;DR
- Stellar (XLM) dropped 20.34% and Cardano (ADA) fell 18.69% over the week ending August 5
- Total crypto market cap sank to ~$230 billion, the lowest in nine months
- Bitcoin held at $7,068 but was down nearly 14% over the same period
- TRON (TRX) suffered the worst weekly decline among top coins at -22%
- Ethereum Classic (ETC) was the only top-15 coin in positive territory
- JCE Capital Management launched a $100 million crypto-focused hedge fund on the same day
Altcoins Crater as Bear Market Tightens Its Grip
By Sunday, August 5, the pain was widespread across the altcoin market. Stellar, which had been trading near $0.2442, posted a weekly decline of 20.34% — one of the steepest drops among major cryptocurrencies. Cardano fared little better, shedding 18.69% to trade at approximately $0.1317. TRON was the hardest hit of all top-15 coins, plummeting 22.04% over the week to just $0.03033.
Even the largest altcoins were not spared. EOS, which had been one of the year’s most anticipated projects following its $4 billion token sale, lost 14.47% over the week, trading at $7.06. Bitcoin Cash declined 13.95% to $709.22, and Litecoin dropped 11.21% to $74.59. The altcoin bloodbath left few places to hide for investors who had rotated out of Bitcoin during the speculative frenzy of late 2017 and early 2018.
Bitcoin Holds Above $7,000 but Momentum Fades
Bitcoin itself was not immune to the selling pressure. The dominant cryptocurrency traded at $7,068.48 on August 5, down 13.72% over the prior seven days. While Bitcoin still commanded a market capitalization of roughly $121.5 billion — more than half of the entire crypto market — the fact that it was heading for a record seventh consecutive weekly loss underscored the depth of the bear market.
Ethereum, the second-largest cryptocurrency, was changing hands at $410.52, down 11.76% for the week. The ETH price had been sliding steadily since reaching nearly $1,400 in January, reflecting both the broader market downturn and growing concerns about the sustainability of the ICO-driven demand that had fueled its parabolic rise.
The One Bright Spot: Ethereum Classic Defies the Trend
In a sea of red, Ethereum Classic (ETC) stood out as the sole top-15 cryptocurrency to post positive weekly gains. ETC rose 5.26% over the prior seven days to trade at $17.69, with a 24-hour gain of 7.66%. The coin appeared to be benefiting from a rotation effect, as some traders sought refuge in one of the few assets not tracking the broader market lower. ETC also had its own narrative momentum following the announcement that Coinbase planned to list the token, though the actual listing would come later.
Institutional Money Arrives Despite the Carnage
In a striking contrast to the retail-driven panic, institutional players continued to build positions. On August 5, JCE Capital Management officially launched a $100 million crypto-focused hedge fund based in Denver, Colorado. The fund aimed to trade Bitcoin, Ethereum, and other major cryptocurrencies using systematic and quantitative strategies.
The launch came just two days after the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, announced Bakkt — a new global digital asset platform that planned to offer regulated, physically-delivered Bitcoin futures contracts starting in November 2018. Backed by partners including Microsoft and Starbucks, Bakkt represented the most significant institutional infrastructure play in crypto to date.
Why This Matters
The events of August 5, 2018, crystallized the defining tension of the crypto bear market: while retail investors were capitulating and prices were in freefall, the institutional infrastructure that would eventually drive the next bull run was quietly being assembled. The contrast between Stellar and Cardano losing a fifth of their value in a single week and JCE Capital deploying $100 million into the same market was not a contradiction — it was the market undergoing a fundamental shift in ownership.
The entry of ICE, Microsoft, and Starbucks into crypto via Bakkt, combined with dedicated hedge fund launches, signaled that smart money was treating the bear market as a buying opportunity. For altcoin investors, the lesson was brutal but instructive: speculative excess eventually reverts to fundamental value, and coins without strong use cases face existential risk during extended downturns. The 2018 bear market would ultimately separate projects with genuine traction from those built on hype alone.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile. Always conduct your own research before making investment decisions.