Global Stock Market Cap, Cryptocurrency Market Cap Peaked in January 2018 — Both Declining Since

January 4, 2019 / by Zachary Mashiach

It is well known among crypto enthusiasts that the total cryptocurrency market cap peaked in January 2018. Specifically, on Jan. 7, 2018, the crypto market peaked at $834 billion and has since then declined to $132 billion today. This is an 84 percent crash, which is strongly in bear market territory.

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The crypto space is not alone in this struggle. It is little-known that the global stock market cap also peaked in January 2018 and has been declining since. The iShares MSCI World ETF ($URTH) peaked on Jan. 26 at $94.07 and currently sits at $78.88, a 16 percent drop, which is just under the 20 percent threshold for a bear market. Most of this drop has happened in the last quarter of 2018, and the momentum on the chart suggests a global stock bear market is likely.

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1,209 stocks from developed countries around the world are included in $URTH, most of which are from the United States, Japan, United Kingdom, France, Canada, Switzerland, and Germany.

Another global stock market index is WCAUWRLD, which calculates the total global stock market cap. Since January 2018, the global stock market cap has lost $20 trillion according to WCAUWRLD, a far more severe loss than the $0.7 trillion shed from the total cryptocurrency market cap during the same period of time.

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Further, 2018 was the first severe down year for the global stock market since 2008, which was the beginning of the Great Recession. This is the first time since Bitcoin was created that the global stock markets are declining, and perhaps ultimately, this could provide a boost to Bitcoin and cryptocurrency adoption since investors may use Bitcoin as a safe haven if the stock market continues to worsen.