Hello everyone, I'm new to this market, there are times when the market is at its peak, sometimes the bottom, so the total market capitalization has gone where, where, who have Can you explain me? , Thanks very much .
That question (even though it is poorly translated into English) is relevant to any market.
First part of the simple answer would be: it has gone to other markets, mostly to fiat currencies and other exchange traded assets. The combined valuation of all crypto assets has gone down, hence investment moved that value to other industries and other means of investment.
Another part of the simple answer, is that partially market capitalization has gone nowhere. It represent its change in the nominal value.
Capitalization is number, its change mostly doesn't represent any actual economic change in the represented asset(s), but only some evaluation changes. For calculation it may be simplified down to an aggregated perceived/market value of all the assets traded within the given market. And whenever the total market capitalization goes up or down, that only means, that the combined perceived value of all the assets traded are going up or down.
And the third part of the answer, is that market capitalization change may represent a change in the purchasing power of the money. Since most of the markets are nominated and evaluated in some fiat currency, any dip in the market capitalization also means an increase in the purchasing power of the corresponding nominal currency of this market.
There is also a complex answer, yet it doesn't fit this format of discussion, since less that 1% would even have enough patience to read it.
Hope that makes sense and provides some satisfactory explanation.
