Bitcoin and the Crypto Crash – Cryptocurrency Market Report for November 2018

By Monica Barker
Published on December 06, 2018
Cryptocurrency Market Report - November

A third of the cryptocurrency market was decimated throughout the month of November, and many major and popular coins like Bitcoin and Ethereum suffered greatly.

It seems like that market has been in a steady decline since March and took a sharp plummet this month to some of the lowest values of the year.

What can we learn from this month’s drop, as well as from the last nine or ten months as a whole?

The biggest lesson we’ve learned is that, frankly, cryptocurrency is fragile.

It’s an emerging form of currency that doesn’t have any real regulations apart from some outright bans and severe limitations set by some countries. And while the unregulated nature is a major appeal for some, it is also a major vulnerability.

We don’t have enough data to analyze the cryptocurrency market in a way that could be helpful, and it is highly volatile, meaning that even if we had the data, it wouldn’t necessarily be possible to make any solid predictions about its future.

Those that choose to invest in their favorite coins do not have the luxury of knowing when or if their investment will pay off or if they’ll end up losing a large amount of money without warning.

If you’re a current investor, someone that is still thinking about investing, or someone that uses cryptocurrency for online gambling, keeping one eye on the news and the market every day needs to be a top priority.

Unlike traditional stocks, it is absolutely imperative that cryptocurrency investors stay on top of daily information, but it’s important that you have a tough resolve and keep a level head in times of stress.

In this month’s cryptocurrency market update, we’ll go over the top ten market capitalization coins and how they performed throughout the month of November, give some insight into the performance through news stories, and hopefully provide a bit of hope for cryptocurrency’s future.

Ranking Cryptocurrency Market Capitalization and Performance in November 2018

There are lots of important things to consider when determining which coins are worth your investment. Two of those important things to consider are market capitalization and performance of the top coins, which we rank every month.

Market capitalization refers to how much of the cryptocurrency market is saturated with that particular coin. In other words, how many people are using that coin at any given time.

The market capitalization ranking doesn’t change much from month to month, but not because it’s set in stone. We do see certain coins jump around the rankings a bit, and we sometimes even see brand new coins breach the top 10.

We’ve arranged this list in terms of the market capitalization ranking on the last day of the month, but we’ve also given each coin a performance ranking from 1 to 10. Spot #1 is reserved for the coin that performed the best that month, and #10 is for the coin that performed the worst.

#1 – Bitcoin (BTC)

Bitcoin was introduced to the world in 2009 by an anonymous group or person called Satoshi Nakamoto. It is probably one of the most well-known cryptocurrencies on the market at this time and has consistently been the #1 coin in terms of market capitalization for quite a while.

As we’ve said, November has not been kind to the cryptocurrency market. Bitcoin lost nearly 40% of its value from the 1st to the 30th, and the coin’s lowest value of the month was an alarming $3,779.13 per BTC.

In terms of performance, Bitcoin ranks #6 for the month of November.

Rank November 1st November 30th November High November Low
6 $6,377.78 $4,017.27 $6,530.14 $3,779.13

#2 – Ripple (XRP)

Ripple is both a coin and a transaction platform that was released in 2012. The platform allows users to transfer many different types of currencies from USD to Bitcoin and everything in between.

The Ripple coin ended up in the #2 spot in terms of market capitalization for November, taking the spot of Ethereum, which came as a bit of a surprise. In terms of performance, it ranks #3 on our list.

On November 1st, the Ripple coin had a value of $0.4557 per coin. On the last of the month, its value had dropped to $0.3624, or about 20%.

Rank November 1st November 30th November High November Low
3 $0.4557 $0.3624 $0.5490 $0.3554

#3 – Ethereum (ETH)

The Ethereum platform and Ether coin (ETH) was proposed in 2013 by Vitalik Buterin as an improvement to the Bitcoin model. It has a number of protocol updates and milestones that signal different changes that have been made in order to improve Ethereum.

It was #7 in terms of performance in November, having dropped in value by about $85 from $198.87 to $113.17. Its highest value of the month was $218.45, and its lowest was just $108.34.

Many experts predicted that Ethereum had the potential to overtake Bitcoin in terms of market capitalization by the end of 2018, but as we get nearer to 2019, it has actually fallen to 3rd place.

Rank November 1st November 30th November High November Low
7 $198.87 $113.17 $218.45 $108.34

#4 – Stellar (XLM)

Stellar was launched in 2014 by Jed McCaleb, founder of the Mt. Gox exchange and co-founder of the Ripple platform. The coins native to the platform are called Lumens (XLM).

The Stellar platform calls itself “the future of banking” and claims to “move money across borders quickly, reliably, and for fractions of a penny.” The network also claims to complete transactions in 2 to 5 seconds, which is significantly faster than Bitcoin’s average transaction time.

Stellar’s cryptocurrency, Lumen, ranked 4th this month in performance. From November 1st, when it was valued at $0.2229 per XLM, to November 30th, valued at $0.1586 per XLM, it dropped by 28.8%.

Rank November 1st November 30th November High November Low
4 $0.2229 $0.1586 $0.2736 $0.1443

#5 – Bitcoin Cash (BCH)

Bitcoin Cash dropped in value by an alarming 59% from the 1st to the 30th this month.

This coin was created after a hard fork in the original Bitcoin setup occurred, and this month, a fork occurred in the BCH setup to create a new coin called Bitcoin SV (BSV). Bitcoin SV is on our top 10 market cap coin list for this month, so we’ll go into the fork a bit more in a moment.

Bitcoin Cash came in at #10 this month in terms of performance, falling from a value of $424.09 per BCH on November 1st to just $173.07 on November 30th. It reached a high of $628.51 briefly near the beginning of the month but soon began to take a turn in the other direction.

Rank November 1st November 30th November High November Low
10 $424.09 $173.07 $628.51 $173.07

#6 – EOS (EOS)

EOS is another platform, EOS.IO, that has a dedicated token. The token itself is called EOS, and it has a current circulating supply of 906 million EOS. Unlike other coins, EOS does not yet have a supply cap set in place.

This month, EOS decreased in value by 45%. It is technically tied with Cardano for the #9 spot in terms of performance in November, but when compared the actual value drop in USD, it lost more than Cardano did.

On November 1st, EOS was valued at $5.28 per coin, and by November 30th, it had fallen to $2.88.

Rank November 1st November 30th November High November Low
9 $5.28 $2.88 $5.73 $2.88

#7 – Litecoin (LTC)

Litecoin was introduced in 2011 as an improvement to Bitcoin’s original setup, offering faster transaction speeds to its users.

For the month of November, it ranks #7 in market capitalization and #5 in performance. From the 1st of the month to the 30th, it dropped by just over 36% per LTC. Its highest value for November was marked at $55.95, and its lowest at $29.22.

Rank November 1st November 30th November High November Low
5 $50.27 $32.06 $55.95 $29.22

#8 – Tether (USDT)

Tether is a crypto representation of actual fiat currencies. In USDT’s case, it is a representation of the United States dollar (USD), but it is also available for the Euro (EUR).

It is exponentially more stable than the other coins on this list, and even during periods of time where the rest of the market seems to be in a freefall, the Tether coin is static.

USDT was the other of the two coins that had a positive net change for the month of November with a gain of 0.01%. This coin doesn’t experience any huge spikes or drops – at least it hasn’t so far – so this minuscule value gain isn’t surprising.

Rank November 1st November 30th November High November Low
2 $0.9917 $0.9918 $0.9994 $0.9666

#9 – Bitcoin SV (BSV)

Bitcoin SV had its first day on the market on November 9th, where it opened at $88.30 per BSV. On its first day, it dropped in value by just over 22%, holding a value of $68.75 per BSV at market close on November 9th.

But despite its ominous first day, it was one of the two coins on the list that actually gained value from the 1st to the 30th.

On November 9th at market open, it was valued at $88.30 and had reached $95.28 per BSV at market close on November 30th. That is a gain of 7.90% during a month that was more than disappointing for most of the well-established coins on the market.

BCV actually managed to climb to a value of $208.40 by market close on November 13th, its fifth day in existence.

At the end of the month, it had a market capitalization of about 1.6 billion. Amazingly, it comes in at #1 in terms of performance this month, despite the fact that it is brand new and was introduced nine days into the month.

Rank November 9th (OPEN) November 9th(CLOSE) November 30th November High November Low
1 $88.30 $68.75 $95.28 $208.40 $42.75

#10 – Cardano (ADA)

Cardano is like the other coins on the market in that it is a decentralized platform and cryptocurrency that operates using blockchain.

But it differentiates itself by being the “first blockchain platform to evolve out of a scientific philosophy and research-first driven approach,” according to the Cardano website.

It ranks 8th in performance for the month of November, dropping in value by 45%. On November 1st at market close, it had a value of $0.0708 and had dropped to $0.0389 by the time the market closed on November 30th.

Introduced on October 1st, 2017, ADA has only briefly ever broken the $1 mark. It made it to $1.08 at the time of market close on January 3rd and hovered around that value until January 5th, when it dropped back down to $0.90 per ADA by market close.

Its value fell to under 10¢ on August 14th of this year and hasn’t risen back over that mark for any significant length of time since then.

Rank November 1st November 30th November High November Low
8 $0.0708 $0.0389 $0.0809 $0.0327

November Cryptocurrency News

We’ve already briefly gone over the devastation that November brought to the cryptocurrency market and its investors, but getting more in depth through informational news stories is important.

There were also some non-crash-related stories that could potentially help the market heal and steadily rise in the future.

Making Cryptocurrency More Environmentally Sustainable

One of the biggest arguments against cryptocurrency is that it has quite a large negative environmental impact because it requires so much energy in order to function.

In 2017, “blockchain used more power than 159 individual nations including Uruguay, Nigeria, and Ireland.” So obviously, if blockchain and cryptocurrency are to have a lasting future, we need to figure out how to cut down their energy usage in a big way.

Cryptocurrency mining is the biggest culprit behind the huge energy footprint. If you’ve read our cryptocurrency or Bitcoin mining guide,  you’ll know that crypto mining is only really profitable when done in a group because of the huge energy bills that come along with hosting the mining rigs.

Some Chrome extensions and websites have also become the target of crypto-jackers, crypto miners that use your processor and computer to power their mining efforts without your knowledge or permission. This will increase the amount of energy you are using without the financial burden for the miner.

It seems that the blockchain setup, as it currently stands, is inherently an energy consumption machine. And before the use of blockchain or cryptocurrency can expand to the mainstream, it’s something that needs to be addressed and fixed.

How can that be done? There are two predominate suggestions that could make mining and operation of blockchain more earth-friendly.

The first is using solar power and other green energy sources for mining. By incentivizing the use of solar power for mining or switching to a cloud mine that uses green energy, we may be able to convince at least a portion of miners, mining groups, and conglomerates to make the change.

The other solution would be to switch to a more energy-efficient cryptographic setup called Proof of Stake (PoS).

The current setup, called Proof of Work, relies on miners in order to complete transactions. They compete with each other to see who can solve the problem first, which means there are multiple miners working on a single block at any given time.

This consumes a lot of extra energy in addition to it being an inefficient setup.

Cryptocurrency is still in its early years, and there are still lots of things to work out in order to maximize efficiency and stability. With that being said, we hope that this issue of energy consumption is given priority for the sake of not only those that consider themselves miners, but more importantly for the environment.

Bitcoin Crashes 37% in November

Cryptocurrency investors are holding on to a shred of hope that 2019 will, at the very least, return their investment and allow them to break even. Bitcoin, arguably the most popular coin on the market, lost 37% of its value during the 30 days of November. This officially puts its loss in value at 70% since January 2018 and 80% since its highest recorded value.

Michael Moro, CEO of Genesis Global Trading, believes that once Bitcoin fell to under $6,000, it didn’t take much for it to fall to under $4,000.

“It’s unclear if this is a ‘bottom’ or a brief period of consolidation before next move down, but buyers are still maintaining some cash on the sidelines in case it does go lower.”

Moro believes that the “messy” fork in the Bitcoin Cash setup may be a part of the dismal performance this month. It is now split in half: Bitcoin Cash and Bitcoin SV (sometimes referred to as Bitcoin ABC).

Of course, it is nearly impossible to actually pinpoint any one reason for the crypto market activity, as it is volatile and unpredictable by nature.

It seems that financial experts are split when it comes to a belief in cryptocurrency, with some holding out hope that there is nowhere to go but up.

Bitcoin Cash Hard Fork Creates Bitcoin SV

Bitcoin Cash was born after a hard fork occurred in the original Bitcoin setup, breaking into its own platform separate from the original. But now another fork has occurred, this time within the Bitcoin Cash platform.

The fork occurred after a debate about increasing block sizes, with the new Bitcoin SV opting to increase their block size to 128 MB.

So, what does that mean for the original Bitcoin Cash? The jury’s still out, but its position at #10 in performance, losing almost 60% of its value over the month of November, may be indicating that loyalty has shifted, and the new Bitcoin SV will make BCH obsolete.

Bitcoin SV is less than a month old at this point, but Craig Wright, the coin’s “controller,” has some big plans for the future. Time will tell if this fork was a good decision or a bad one, but one thing we know for sure is that it will be interesting to see how it unfolds!

The Rest of 2018, According to Experts

You may be thinking that any expert worth their salt would be telling you to pull out as fast as you can with as much money as you have left invested in the cryptocurrency market, but you would be wrong!

Tom Lee, a market analyst, believes that Bitcoin will still reach $25,000 by the end of 2018. Lee believes that now that the value of the coin is the lowest that it has been in quite some time, keen investors and traditional banking institutions may see this as the perfect time to buy.

More buyers will theoretically lead to a market and Bitcoin bounce-back, potentially leaving some room (albeit a very small amount) for the coin to hit $25,000 within the next 30 days.

Robert Sluymer, another market analyst from Fundstrat, believes that Bitcoin has hit its bottom and will start to recover through the month of December. He says that he believes that Bitcoin is about to “challenge its downtrend.” In other words, it will start to see some positive movement.

But both Sluymer and Lee have stated that $7,800 is what they refer to as a “key level,” meaning that if Bitcoin can reach $7,800 and stay at or above it for a period of time, that is the confirmation that the downtrend has begun to reverse.

As always, we suggest that you do PLENTY of research before making any decisions regarding your status as a cryptocurrency investor or user.

While short-term trends are unreliable when it comes to trying to predict future movement, they can be helpful tools. We certainly hope that the market has hit a bottom and that December will bring some positive news, for the sake of your dollar as well as the progression of digital currencies as a whole.

Bitcoin and the Crypto Crash – Cryptocurrency Market Report for November 2018
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Bitcoin and the Crypto Crash – Cryptocurrency Market Report for November 2018
Bitcoin and other cryptocurrencies took a big hit in November 2018. Find out what happened in our latest cryptocurrency market report.
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