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Grayscale Drops Bombshell Report: Crypto Bull Run Progresses To ‘Middle’ Phase, Future Outlook Detailed

The cryptocurrency market has witnessed a significant surge after a prolonged bear market and the intensified crypto winter caused by the collapse of crypto exchanges and firms during 2022 and part of 2023. 

Notably, Bitcoin and other major cryptocurrencies have experienced substantial price surges, accompanied by renewed interest from institutional investors entering the market through recently approved spot Bitcoin exchange-traded funds (ETFs). 

Adding to the industry’s positive outlook, asset manager and Bitcoin ETF issuer, Grayscale, believes that the current state of the market indicates that the industry is in the “middle” stages of a crypto bull run. 

Grayscale recently released a comprehensive report detailing their key findings and insights into what lies ahead. A closer analysis of the report by market expert Miles Deutscher sheds light on the factors contributing to this assessment.

On-Chain Metrics And Institutional Demand

Grayscale’s report starts by highlighting several key signals indicating that the market is currently in the middle of a bull run. These include Bitcoin’s price surpassing its all-time high before the Halving event, the total crypto market cap reaching its previous peak, and the growing attention from traditional finance (TradFi) towards meme coins.

To understand how long this rally might sustain, Grayscale emphasizes two specific price drivers: spot Bitcoin ETF inflows and strong on-chain fundamentals.

Grayscale notes that nearly $12 billion has flowed into Bitcoin ETFs in just three months, indicating significant “pent-up” retail demand. Moreover, ETF inflows have consistently exceeded BTC issuance, creating upward price pressure due to the demand-supply imbalance.

Grayscale’s research focuses on three critical on-chain metrics: stablecoin inflows, decentralized finance (DeFi) total value locked (TVL), and BTC outflows from exchanges.

According to Deutscher, the increase in stablecoin supply on centralized exchanges (CEXs) and decentralized exchanges (DEXs) by approximately 6% between February and March suggests enhanced liquidity, making more capital readily available for trading.

Crypto

Furthermore, for the analyst, the doubling of the total value locked into DeFi since 2023 represents growing user engagement, increased liquidity, and improved user experience within the DeFi ecosystem.

The outflows from exchanges, which currently account for about 12% of BTC’s circulating supply (the lowest in five years), indicate rising investor confidence in BTC’s value and a preference for holding rather than selling.

Based on these catalysts, Grayscale asserts that the market is in the “mid-phase” of the bull run, likening it to the “5th inning” in baseball. 

Promising Outlook For Crypto Industry

Several key metrics support Grayscale’s analysis, including the Net Unrealized Profit/Loss (NUPL) ratio, which indicates that investors who bought BTC at lower prices continue to hold despite rising prices. 

According to Deutscher, the Market Value Realized Value (MVRV) Z-Score, currently at 3, implies that there is still room for growth in this cycle. Additionally, the ColinTalksCrypto Bitcoin Bull Run Index (CBBI), which integrates multiple ratios, currently stands at 79/100, suggesting that the market is approaching historical cycle peaks with some upward momentum remaining. 

Furthermore, retail interest has yet to fully return this cycle, as evidenced by lower cryptocurrency YouTube subscription rates and reduced Google Trends interest for “crypto” compared to the previous cycle.

Crypto

Ultimately, Grayscale retains a “cautiously optimistic” stance regarding the future of this bull cycle, given the promising signals and analysis outlined in their report.

Crypto

Featured image from Shutterstock, chart from TradingView.com 

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United States Dominates Global Crypto Market With Massive $9.3 Billion In Profits

In a recent report by market intelligence firm Chainalysis, it has been revealed that global crypto gains in 2023 amounted to a staggering $37.6 billion. This profit surge reflects improved asset prices and market sentiment compared to 2022. 

Although this figure falls short of the $159.7 billion gains witnessed during the 2021 bull market, it signifies a significant recovery from the estimated losses of $127.1 billion experienced in 2022.

Sharp Surge In Crypto Gains

The report suggests that despite similar growth rates in crypto asset prices in 2021 and 2023, the total gains for the latter year were lower. According to Chainalysis, this discrepancy could potentially be attributed to investors’ decreased inclination to convert their crypto assets into cash. 

The analysis further suggests that investors in 2023 seem to have anticipated further price increases, as crypto asset prices did not exceed previous all-time highs (ATHs) during the year, unlike in 2021.

Crypto

Cryptocurrency gains remained relatively consistent throughout 2023, except for two consecutive months of losses in August and September, as seen in the image above. However, gains surged sharply thereafter, with November and December eclipsing all previous months.

United States Leads

Leading the pack in cryptocurrency gains was the United States, with an estimated $9.36 billion in profits in 2023. The United Kingdom secured the second position with an estimated $1.39 billion in crypto gains. 

Notably, several upper and lower-middle-income countries, particularly in Asia, such as Vietnam, China, Indonesia, and India, achieved significant gains, each surpassing $1 billion and ranking within the top six countries worldwide. 

Crypto

Chainalysis had previously observed strong cryptocurrency adoption in these income categories, particularly in “lower-middle-income” countries, which demonstrated resilience even during the recent bear market. The gains estimates indicate that investors in these countries have reaped substantial benefits from embracing the asset class.

Ultimately, the Chainalysis report suggests that the positive trends observed in 2023 have carried over into 2024, with prominent cryptocurrencies such as Bitcoin (BTC) hitting all-time highs of $73,700 following the approval of Bitcoin exchange-traded funds (ETFs) and increased institutional adoption. 

If these trends persist, the firm believes that it is conceivable that gains in 2024 will align more closely with those witnessed in 2021. 

Crypto

As of this writing, the total crypto market cap valuation stands at $2.5 trillion, a sharp drop of over 4% in the last 24 hours alone, and down from Thursday’s two-year high of $2.7 trillion. Bitcoin, on the other hand, is trading at $68,400 after dropping as low as $65,500 but has quickly regained its current trading price, limiting losses to 4% over the past 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Market Slowdown Amid Rally? Prices Remain Strong With Bitcoin Above $62K

The crypto market has shown an incredible performance over the past week. Bitcoin has sustained momentum and risen above the $60,000 level, reaching $64,000.

The levels reached at the end of February have suggested to many investors that March could be an even more impressive month for the current bullish rally.

However, no prediction is set in stone, as many factors could swing investors’ sentiments and move the trends in the opposite direction. At the moment, the crypto market seems to have taken a small pause to catch its breath.

Crypto Market Momentarily Slows Down

The global crypto market reached a significant milestone for this bullish run a few days ago. As reported, the total crypto market cap hit $2T on February 27, an accomplishment not seen since April 2022.

As March begins, the market cap for the crypto market sits at $2.3 trillion, representing a 17.97% surge in the 7-day timeframe. This growth has surpassed the level established in early 2022 and potentially clears the path to the $2.4 trillion mark seen in December 2021.

Nonetheless, the market rise seemingly slowed down momentarily. The current market cap of $2.31 trillion represents a modest 1.32% decrease over the last day, according to CoinMarketCap data.

Similarly, the total crypto market trading volume was around $127.9 billion at writing time, registering a significant 35.77% drop from yesterday.

The data shows that Bitcoin and Ether have faced over 40% market activity decrease compared to the trading volume registered 24 hours ago. Similarly, some of the largest memecoins showed a slowdown in performance.

As the list below shows, Dogecoin (DOGE) registered a 5.9% price drop on the last day. Likewise, Shiba Inu’s (SHIB) price decreased by 5.8% in the same timeframe.

On the contrary, Solana (SOL) performed better on the last day than the top ten cryptocurrencies, registering a 4.1% price surge.  SOL’s $134 price places it alongside DOGE as the best-performing cryptocurrencies among the top ten in the last seven.

Among the largest gainers on the last day, PEPE reversed yesterday’s 12% price drop after registering a 10.9% growth during the past 24 hours. Similarly, the dog-themed memecoins dogwifhat (WIF) and (BONK) registered a price increase of 20,66% and 6.65%, respectively.

Bitcoin And Ether Remain Strong Amid The Market Volatility

Some analysts expect a significant halving-related drop in Bitcoin’s price. Meanwhile, the King of crypto has shown strong resistance above a massive support wall, as crypto analyst Ali Martinez suggests.

Over 1 million addresses are buying over 671,000 BTC within the $60,000 and $62,000 price range. Which, according to the analyst, highlights a strong investor confidence. This confidence could be a crucial support level and a cushion against a future price drop.

At writing time, the flagship cryptocurrency trades at around $62,052.71, which only accounts for a 1% decrease from the day before. BTC has increased over 21.8% in the last week, and it’s only 10.34% lower than its all-time high (ATH) of $69,000 registered in November 2021.

Likewise, it’s worth noting that Ether (ETH) has been showing a robust performance in the past few days amid the volatile crypto market. Maintaining its price range in the past 24 hours, the ‘king of altcoins’ registered only a 1.8% price decrease from yesterday. ETH currently trades at $3,411.88, representing a notable 16.2% rise in the past week.

BTC, BTCUSDT, Bitcoin

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Crypto Analyst Predicts Crypto Market To Reach $23 Trillion, XRP Price To Cross $13

Crypto analyst Dark Defender has provided insight into how the XRP price could rise to $13. The analyst also suggested that the crypto token’s price could end up being way above that when other factors are considered. 

How XRP Will Rise To $13

In a post on his X (formerly Twitter) platform, Dark Defender stated that the XRP price could hit $13 when the total crypto market cap hits $23.24 trillion within a year. He noted how the crypto market has become more valuable year-on-year as it rose from $816 billion a year ago to around $1.6 trillion now. As such, he expects a “third wave” to happen with XRP’s rising with the tide. 

The analyst also hinted that there is the possibility that XRP could be higher than $13 as this price level will be achieved without considering its fundamentals. The fundamentals that he alluded to were regulatory clarity and XRP’s utility. XRP’s gaining legal clarity has been touted as one of its unique offerings and something that paints a bullish picture for the crypto token. 

Going by Dark Defender’s projections, the XRP price could also possibly have doubled from the $13 price level by 2027, as the analyst puts the total crypto market cap at $100 trillion by then. In a previous post, the analyst also raised the possibility of more institutional adoption of XRP, something which could also contribute to a significant rise in its price. 

XRP price chart from Tradingview.com (Ripple)

XRP Price Set To Enjoy From Bitcoin’s Surge

Bitcoin rose to as high as $47,000 as approval of the Spot Bitcoin ETFs looks imminent. Following BTC’s latest surge, crypto analyst CryptoInsightUK hinted that XRP could be next. He had previously laid out a bullish narrative for altcoins, including XRP, as he stated that they could post significant gains as traders cycle their profits into smaller market-cap tokens.   

Specifically, he noted that it could be time for XRP to shine as the crypto token is closer than ever to a move to the upside. Another reason why this move seems imminent is because the narrative in the crypto community is “awful” for XRP, the analyst remarked. As part of his 2024 predictions, CryptoInsightUk sees XRP rising to between $10 and $15 as BTC rises to $100,000.

He believes the rally in the next bull run will be something similar to the one that happened in 2017. Interestingly, the analyst had previously raised the possibility of XRP repeating a rally similar to the one in 2017 when it posted a 61,000% gain. 

At the time of writing, XRP is trading at around $0.5724, up over 2%, according to data from CoinMarketCap. 

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Crypto Sentiment Index Stays Bullish Despite Corrections, Report Reveals Positive Outlook

In a recent blog post, ETC Group’s Head of Research, Andre Dragosh, provided a comprehensive analysis of the current state of the crypto market. Dragosh’s findings shed light on the market’s performance dynamics, profit-taking activity, and derivative trends.

High-Risk Appetite In Crypto Market

According to Dragosh’s analysis, crypto assets showcased their resilience as they outperformed traditional assets like equities, supported by a significant repricing in monetary policy expectations and short futures liquidations at the beginning of last week. 

However, this outperformance encountered some limitations in the short term due to stronger-than-expected US jobs data, which began to dampen the recent rally. The US non-farm payroll growth and unemployment rate surpassed consensus estimates, leading to a reversal in US Treasury yields and a decrease in overall risk appetite across traditional financial markets.

Notably, altcoin outperformance gained momentum during the period, with Avalanche (AVAX) and Cardano (ADA) returning over 50% each. Among the top 10 crypto assets, Avalanche, Cardano, and Polkadot (DOT) stood out as the relative outperformers. 

According to Dragosh, this surge in altcoin outperformance compared to Bitcoin (BTC) indicates a “high-risk appetite” within the crypto market. On the other hand, on-chain data for Bitcoin suggests that investors are increasingly taking profits, evidenced by the rising number of coins in profit being sent to exchanges.

Crypto

ETC Group’s in-house Crypto Asset Sentiment Index remained relatively elevated compared to the previous week, indicating positive market sentiment. However, major reversals to the downside were observed in the Crypto Dispersion Index and the BTC 25-delta 1-month option skew. 

The Crypto Fear & Greed Index continued to reside in “Greed” territory, reflecting ongoing market optimism. Although ETC Group’s Cross Asset Risk Appetite (CARA) measure declined slightly, it remained in positive territory, signaling a decrease in risk appetite in traditional financial markets.

Performance dispersion among digital assets decreased compared to the previous week but remained relatively high. This implies that correlations among crypto assets have decreased, and investments are driven by coin-specific factors, highlighting the importance of diversification among digital assets.

Short-Term Holders Cash In

The market remains in a strong profit environment, with a significant percentage of BTC and ETH addresses in profit. According to Dragosh, profit-taking activity, particularly among short-term holders, has increased as Bitcoin approaches recent highs, leading to higher selling pressure. 

Long-term holders have also increased their transfers of profitable coins to exchanges, potentially hindering short-term price increases. However, it is worth noting that there is no evidence of older coins being spent, which would indicate a larger price correction.

On the other hand, aggregate open interest in BTC futures and perpetual remained stable, with notable futures short liquidations recorded. BTC option open interest saw a significant increase, accompanied by relative put-buying and an increase in the put-call open interest ratio. 

The 25-delta BTC option skews also increased, indicating higher demand for puts compared to calls. However, overall at-the-money (ATM) implied volatilities did not change significantly.

Crypto

At the time of writing, BTC has lost its $42,000 support line, trading at $41,600, down 5% in the last 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Market Cap To $25 Trillion: Cathie Wood Reveals The 2 Coins To Buy

Cathie Wood, CEO of Ark Invest, has reiterated her bullishness on the crypto industry. In a recent interview with CNBC’s “Squawk Box,” Cathie Wood argued that the crypto industry is poised to reach a $25 trillion valuation, given a regulatory breakthrough in the US. Out of the multitude of digital assets on the market right now, Wood sees two cryptocurrencies driving much of that growth: Bitcoin and Ethereum.

Cathie Wood Predicts $25 Trillion Crypto Ecosystem

The entire crypto industry has witnessed unprecedented growth since the middle of October. According to data from Coingecko, the entire crypto market cap has increased 35% from $1.096 trillion on October 15th to a current value of $1.4828 trillion. 

However, Cathie Wood is of the notion that this growth isn’t over, and the industry will reach a $25 trillion valuation in the near future. A $25 trillion market cap means the industry would have to grow a whopping 1,585% from its current level.

Cathie Wood had predicted earlier in 2021 that Bitcoin would climb more than 10 times its value in the next five years, back when the asset was still trading around $50,000. Given that Bitcoin is now selling at around $37,000, the host of Sqwauk Box, Andrew Ross Sorkin, questioned Wood as to whether or not she still stands by her prediction.

“If we have this conversation in ‘25, ‘26, are you on track?” Sorkin asked.  “Yes,” Wood replied.

The CEO did mention that this growth would be feasible only if there were a regulatory green light to allow financial institutions to participate in the cryptocurrency market. She also brought up the role that Spot Bitcoin ETFs will play in the projected spike, particularly BlackRock and Coinbase’s plan to offer a spot Bitcoin ETF in the US.

“I think BlackRock and Coinbase’s partnership is going to be very important,” she said.

Crypto total market cap chart from Tradingview.com (Cathie Wood $25 trillion 2 coins Bitcoin Ethereum)

Bitcoin And Ethereum The Ones To Look Out For

Wood specifically called out two coins to look out for as catalysts for this growth: Bitcoin and Ethereum, the two leading assets. This isn’t surprising, as these two assets have developed better price stability than most over the years. 

“Our expectation is that the crypto asset ecosystem will be dominated [by Ether and Bitcoin], and it will scale from a little more than $1 trillion today to $25 trillion in 2030 as this new world develops,” Wood explains.

The ARK Invest CEO has been a long supporter of Bitcoin. In another interview, she said she would prefer to hold Bitcoin for 10 years over cash and gold. The CEO is also no stranger to Bitcoin price predictions, as she has previously said that BTC will go to $500,000 and even reach $1.48 million in the next seven years.

According to CoinShares’ latest report, investment products tied to digital assets just reached a yearly institutional inflow of $1.14 billion. The majority of this money ($1.083 billion) has gone into Bitcoin investment products. This could signal the beginning of large-scale institutional investor participation that Wood believes will propel the crypto market cap to $25 trillion.

ARK Invest is also waiting for the SEC’s green light on its spot Ethereum ETF application. Approval of a Spot Bitcoin ETF by the SEC is expected to propel the crypto market into the next bull run.

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Short Relief Bounce For Altcoins? If Crypto Marketcap Can Do This

  • Cryptocurrency market capitalization could be ready to break out from the downtrend as price gears up for a short-term recovery creating more bullish sentiment for the altcoins.
  • Cryptocurrency market capitalization looks strong on both low and high timeframes. 
  • Cryptocurrency market capitalization prepares for a breakout on the daily timeframe after forming a descending triangle.

The Crypto Marketcap had had a tough time regaining its hype when the crypto market cap was at its peak of over $2.8 trillion, with most crypto assets performing at their best. The crypto market capitalization also called the crypto market cap, takes in market data from a range of cryptocurrencies — including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and EOSIO network (EOS) — to provide a fuller, real-time picture of how the crypto asset sector is performing.

Crypto Market Capitalization Price Analysis On The Weekly Chart
Weekly Total Market Cap Price Chart | Source: On Tradingview.com

The new month has been a relief for most crypto projects, with altcoins such as BTC, ETH, and even XRP, with the market cap, continues to look promising ahead of a major rally.  

With the market having a rally to an all-time of over $2.9 trillion, this positively impacted the price of altcoins and major assets as the market found itself in a blooming phase with so much euphoria.

After hitting over $2.9 trillion market cap, the price declined from that region, acting as resistance or blown-off top as the price struggles to regain its form. It dropped to a region of $774 billion market cap seeing a huge sell-off in assets across the crypto market.

The market cap bounced from its weekly low of $774 billion as the price rallied to a region of $1.17 before facing resistance to breaking above this region as the price retraced to $850 billion as the price formed a good support zone with what seemed to be a key demand zone for buy orders across the market.

In recent weeks, the price of assets in the crypto market has not shown some strength as prices rally, showing some glimpses of relief bounce.

Weekly resistance for the price of crypto market cap – $1.2T.

Weekly support for the price of crypto market cap – $850T.

Crypto Marketcap Analysis Of REN On The Daily (1D) Chart
Daily Total Market Cap Price Chart | Source: On Tradingview.com

On the daily timeframe, the crypto market cap price remains bullish, holding the support at $850 billion ($850B) as the price range in a descending triangle trying to break out. 

The crypto market cap is currently trading at $930 billion, with the price holding above the 8 and 20-day Exponential Moving Averages (EMA) after breaking through resistance in this region. 

If the market cap maintains its structure, we could see more relief rallies for all most crypto assets.

Daily resistance for the crypto market cap price – $1.2 Trillion

Daily support for the crypto market cap price – $850 Billion.

Featured Image From zipmex, Charts From Tradingview 

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The Worst May Be Over As Crypto Market Adds More Than $100 Billion

The crypto market had suffered a long stretch of downtrend following the mid-June market crash. This had brought the total market cap down to yearly lows as large and small cryptocurrencies alike suffered. However, there is starting to be a turn in the tide with the new week. The crypto market cap, which had been trending below $900 for the better part of the week, had put on $100 billion.

Crypto Sentiment Begins To Turn

The crypto market cap still remains below $1 trillion but it has recovered to a good point. With the price of bitcoin above $22,000, it has gotten close to reclaiming this crucial position. Another thing that has pushed the crypto market cap has been the recovery of Ethereum, whose recent bullish tendencies have rubbed off on other smart contract platforms in the space.

Related Reading | Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?

With this, the sentiment of crypto investors has begun to shift. One of the ways in which this has happened has been in the reading of the crypto Fear & Greed Index. This index uses data from five different metrics to present a figure that represents how investors are feeling toward the market.

Crypto market cap recovers close to $1 trillion | Source: Crypto Total Market Cap on TradingView.com

For the better part of June, the index had been in the ‘Extreme Fear’ territory. This was as the bear trend raged on, and investors had taken a step back from the market due to the losses. This saw the market close out the month with one of the lowest scores in the interest of the index with a 6.

However, as some cryptocurrencies in the market have recovered, so has the market sentiment. The Fear & Greed Index presently sits at a score of 20 at the time of this writing. So although it still remains in the extreme fear territory, it is up 14 points from last month’s close.

Related Reading | Mid Cap Crypto Coins Lead In July, Best Way To Weather The Winter?

There is no doubt that bitcoin’s recovery above $22,000 has a lot to do with this. The pioneer cryptocurrency is a market mover, and if it continues to grow, it is expected that market sentiment will recover more.

One thing to note, though, is that such large recoveries in such a short time can lead to sell-offs. Mainly, investors often see such moves as a ‘bull trap’; hence they try to get out of the market before the inevitable retracement. Over the last 24 hours, there have been more BTC going into centralized exchanges with a positive net flow of 725.2 million. This supports the fact that investors are taking this time to sell their holdings.

Featured image from Kapersky, chart from TradingView.com

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Crypto Market Cap Falls By $80 Billion In A Day As Bitcoin Dumps Below $40K

The crypto market cap declined by about $80 billion today as Bitcoin dropped to a monthly low beneath $39,000.

The crypto markets are on another roller coaster ride today, with bitcoin slipping below $40,000 and many altcoins dumpings as well. Ethereum has taken it on the chin losing over 5% of its value to sit at just under $3,000 per coin. Other altcoins like Terra, Ripple, Solana, Cardano and Polkadot also had substantial price losses. 

Related Reading | TA: Ethereum Slides Below 3K, Why Bears Could Aim $2.5K

Altcoins Enter The Red Sea As Bitcoin Drops

With little-to-no substantial price movements for most of this week, today is a different day for altcoins. The market has been tumultuous, and prices are swinging back and forth throughout the day. As a result, most altcoins are recorded in red with the day started. 

The price of Ethereum has continued to drop, now below $3k for the third time this month. The cryptocurrency is leading an adverse trend, with other coins following suit and falling by almost 5%.

The Binance coin struggled to maintain its position at around $400 after a 3.5% decrease in the last 24 hours. However, things are starting to look up for this cryptocurrency as of late Sunday evening, when prices were close to $420 per coin.

Today, the big movers are Cardano with a 7% decrease and Ripple 6% decrease. Some other notable tokens are Shiba Inu, whose value dropped 6%, Polkadot, with a 7% decline over the last 24 hours, and Dogecoin declined 6%.

The cryptocurrency market has been rough today, with many coins losing 10% or more. The biggest losers include KNC (-11%), Filecoin (-11%), ZILIQA (-10%). Others, including EOS and STEPN, both lost 10% of their value today. 

Eventually, The crypto market cap is down $80 billion and now sits at $1.8 trillion.

Crypto Market cap is recovering after hitting its month low of $1.75 trillion | Source: Crypto Market Cap by Tradingview.com
Bitcoin Falls To Monthly Low

Bitcoin found itself in the headlines this past week, as it fell from $45,000 to around $40,000. The cryptocurrency had relaxed for much of last night above $40,000 and even took a swing at $41,000. 

Although bitcoin held onto its value above $40,000 over the weekend, the bears came out in force and pushed prices below $40,000 for the second time in ten days.

Related Reading | Bitcoin Traders Long The $39K Dip, Will BTC Head In Expected Direction?

In today’s dump, Bitcoin fell by $38,600, the lowest price mark since March 16. Bitcoin has risen a few hundred dollars after falling to its month low, but its market capitalization is still below $750 billion. 

The price of bitcoin has been tightening in recent months. However, a capitulation event, where traders are predicting a downward trajectory for the cryptocurrency’s value, could be brewing at any time.

 

Featured image from Pixabay.com and chart from Tradingview.com

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Crypto Market Cap Regained $2 Trillion With Bitcoin Reaching At $45K

The cryptocurrency market is still red, but it seems to be holding steady for now. In the last 24 hours alone, we’ve seen Bitcoin top $45,000 and then drop back down below $44,000. With the price of Bitcoin continuing to climb, it is no surprise that its market cap has reclaimed $2 trillion.

Cryptocurrencies are beginning to recover after a month-long decline, with some coins seeing significant gains over the past day. The most valuable cryptocurrency by market cap, Bitcoin breached $45,000 for the first time in over 30 days as it gained 5.2%.

Related Reading | Crypto Market Cap Reclaimed $2T: Bitcoin Reached 30-Day High Above $45K

The cryptocurrency industry breathed a sigh o relief this week following severe sell-offs from January’s tumultuous trading sessions that saw many coins hit historic lows not seen since last year’s bull market crash. On Monday alone, there were five separate crashes across various communities leading up until Tuesday morning, when things finally started recovering.

Bitcoin Could Not Sustain At $45K Level

Honestly, the price could not sustain at these levels and has since retraced below $44,000. Still, the coin is up 2.7% in 24 hours with average volatility that left some $305 million worth liquidated positions during this period – the largest single order took place on OKEx, which valued BTC/USDT position 3.6 million dollars.

It is no surprise that most liquidations are of short positions, and they happen on OKEx and Binance especially. However, there’s also some activity at Bybit too.

Despite the recent upturn in Bitcoin prices, short positions continue to dominate. The aggregated funding rate remained negative, generally seen as a bullish sign. It can lead investors who expect their investments to liquidate these crypto-assets for even greater returns profitably.

Crypto Market Cap Regained $2 Trillion

Bulls in the crypto space have once again proved their might as they reclaim a key milestone of $2 trillion for total market capitalization. This comes on top of recent gains with Bitcoin and some altcoins too.

Crypto bulls achieved the milestone by reclaiming a $2 trillion market Cap | Source: Crypto Market Cap on Tradingview.com

Today, the top 10 cryptocurrencies are doing well, with AVAX seeing a 6% increase in value over the last 24 hours. Shiba Inu (SHIB) continues to be one of our favorite coins that’s up 17%. MATIC has also seen an 8% rise since yesterday, but other leading altcoins aren’t following suit again.

The day saw a shakeup in the crypto market, with Solana and Poldadot losing about 3%. Ethereum lasted more or less flat throughout, which is also true for Binance coin (BNB). The biggest winner was KDA, which experienced 20% growth, while QNT saw an 8 percent decline in value over time. 

Related Reading | Top Crypto Gainers And Losers Today

The market is becoming more balanced as Bitcoin’s dominance increases.

Bitcoin Correlation With The U.S Stock Market

Bitcoin has been experiencing increased volatility since the beginning of 2022. As a result, many are concerned about its correlation with stock markets, and it is expected that if this trend continues, then Bitcoin’s price could go even higher in SP500 index races. However, the stability within America’s benchmark indices may just push our digital assets further upwards.

The US Federal Reserve has been a significant factor in crypto price movements over this year, with many people expecting them to tighten monetary policy again. The upcoming budget release on Thursday may provide insight into whether or not that occurs. So we’ll be waiting for updates on interest rates hikes and what they mean going forward.

Featured image from Pixabay, chart from Tradingview.com

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$200 Billion Exits The Market As Bitcoin Plummets To A Multi-Month Low

Bitcoin, the top asset in the industry has noted a sharp fall in prices over the last 24 hours. At press time, the king-coin depreciated by almost over 9.7%. Bitcoin dropped its value by almost $7,000 and was exchanging hands at $38,233.95. This marked an almost six-month low for the coin. This price level is the lowest ever since the first week of August last year. Following Bitcoin’s price action, altcoins followed suit as a majority of them were seen trading in the red at the time of writing.

The global cryptocurrency market cap was at $1.95 trillion after a considerable fall of about 7.7% over the past day. The global crypto cap hadn’t dipped below the $2.11 Trillion mark in over 3 months now. This major plunge in value across the broader cryptocurrency market had caused roughly $200 Billion to leave the market. Ethereum, which is the second-largest cryptocurrency in regards to market capitalisation also registered a tumble of about 8% in the last 24 hours.

Related Reading |TA: Bitcoin Dives Below $40K, Why Bulls Could Struggle In Near Term

What Could Have Potentially Caused This Big Dump

The bears had taken over the market, however, it isn’t safe to assume that the market would continue with a bearish outlook just yet. This could also be a price correction from which Bitcoin and major altcoins might recover over the upcoming trading sessions.

This retracement in Bitcoin’s prices from $43,000 could have happened for a number of reasons. Needless to say, crypto markets are volatile, however, current price movements of the major cryptocurrencies can be tied to a couple of recent developments in the crypto space.

This sudden substantial sell-off in prices could have been caused due to stock market weakness after the US Federal Reserve introduced high-interest rates and tapered the stimulus. The Fed hiking the interest rates in the form of tightening the overall monetary policy has, in turn, affected the unregulated market of cryptocurrencies.

The cryptocurrency industry has also suffered the pangs of other recent regulatory measures. The most recent one is Russia’s blanket ban which has rocked the global cryptocurrency market. Other regulatory measures which have been set in motion to curb the rapid growth of digital asset has also had negative effects on the prices.

Securities and Exchange Commission has signaled at scrutinising cryptocurrency exchanges. Environmental factors have also raised eyebrows of regulatory bodies, European Securities and Markets Authority (ESMA) wishes for the EU to ban the proof-of-work model.

All of the above-cited reasons have sent shock waves across the crypto industry causing the fear index to point at 19, a number that corresponds to “Extreme Fear” in the market.

Related Reading | TA: Ethereum Nosedives, Indicators Show Signs of Larger Downtrend

Bitcoin Price Analysis: Crucial Trading Levels to Watch Out For

Bitcoin was priced at $38,233.95 after the coin nosedived close to 9% at press time. The asset flashed a death cross, which is considered to be extremely bearish in nature. The prices were beneath the 20-SMA line, indicating that sellers were responsible for driving the price momentum in the market.

Source: BTCUSD on TradingView.com

The Relative Strength Index hurtled as it reflected the excessive selling pressure in the market. Currently, Bitcoin’s RSI was hovering beneath the 25-mark which meant that the asset was oversold and undervalued.

The support level for the coin stood at $37,982.40 and a push from the bears could make BTC trade at that aforementioned level. The Average Directional Index was near the 50-mark, implying a strengthening of the current price trend in the market. The resistance price level for the coin was $39,829.16.

Featured image from The Motley Fool, chart from TradingView.com

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Bitcoin Dominance Down As Market Hits $2 Trillion, Altcoins Are Taking Over

Bitcoin market dominance continues to decline as the markets make their way back up the charts. The top cryptocurrency has seen its market share consistently dropping as investors get interested in altcoins. Over the five years since it has been in operation, Ethereum now has a bit under half the market dominance of the digital asset. This has translated to altcoins like Ethereum rallying despite what direction the price of bitcoin is headed.

Now, once again, as is the same with all bull markets, the altcoins are breaking away from the influence of bitcoin. As the bull rally continues to rage on, alts are creeping up to steal more market share for themselves. Just this year alone, BTC has lost over 30% of market dominance. Starting out the year in the 73% range, to where it now sits at 44.13%.

BTC market cap dominance down to 44% | Source: Market Cap BTC Dominance on TradingView.com

Related Reading | Crypto Market Cap Inches Closer To $2 Trillion, What To Expect From The Market

Although BTC continues to have the highest market cap of all, alts are seeing increasing numbers. Ethereum’s market cap has seen another upward trend that is sending the asset’s total market cap towards $400 billion. Coming hot on the heels of the London Hard Fork that brought increased interest into the asset.

Total Market Cap Hits $2 Trillion

The crypto total market cap took a severe beating down three months back when it crashed down from its all-time high of $2.4 trillion. Spending the last three months in a perpetual state of sluggish movement that looked to be the beginning of a brutal bear market.

Total crypto market cap hits $2 trillion for the first time in months | Source: Crypto Total Market Cap on TradingView.com

A bounce back in the prices of cryptocurrencies all across the market has seen the market cap recover. Breaking the $2 trillion mark for the first time since the crash and now, indicators show that the market could be on its way to breaking the record high. The rebound in the crypto market cap has now seen renewed interest in the market.

Bitcoin and altcoins alike have rallied in the past couple of weeks, leading to a breaking of $2 trillion. More projects are fueling the interest of their investors.  Projects like Cardano and Ethereum continue to be top of mind in the market. Their continued dedication to making their network optimal drives continued faith in the market.

Altcoins Will Rally With Or Without Bitcoin

The market dominance of BTC shows that altcoins are on their way to being completely independent of what is happening to the top crypto. Prices of cryptocurrencies have historically always rallied behind bitcoin. But it seems that that era is coming to an end.

Related Reading | Why A Shocking Altcoin Season Could Be On The Horizon

Soon, some altcoins will have taken enough market share from bitcoin to put them on almost equal footing. This will mean that the prices of these alts with high market dominance will also determine the direction of the market, regardless of what direction BTC is facing.

This is why “alts season” is a popular saying in the market. Every time altcoins take market share from the top cryptocurrency, the market sees a rally in the prices of alts. Whereas at the same time, the price of bitcoin could be stagnant or even be experiencing a downward trend while alts record massive gains.

Featured image from Personal Financial, charts from TradingView.com

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Crypto Market Cap Inches Closer To $2 Trillion, What To Expect From The Market

Crypto market inches closer to a $2 trillion market cap with each rally. The total market cap had crashed following its peak back in May when the entire market saw a crash across prices. Since then, the movement of the market cap has wavered between slight recoveries and dips. The total crypto market cap had crashed to as low as $1.2 trillion at some point in June.

The market cap has now resumed its upward climb, seeing the price of top coins post tremendous gains in the market. Getting back up to $2 trillion remains a big point for the market in general. The total crypto market cap has gained over $500 billion in the past three weeks. Culminating in the present market cap value of over $1.8 trillion.

Related Reading | Bitcoin Accumulation Patterns Shows Rally Might Only Be In Its Early Stages

Price Surge Following $2 Trillion Market Cap

A price surge is sure to follow the crypto market hitting a $2 trillion market cap. The last time the total market cap hit $2 trillion saw the price of bitcoin pass $60K. With Ethereum shooting past $4,000.

Total market cap nears $2 trillion mark | Source: Crypto Total Market Cap from TradingView.com

Market cap numbers are calculated by multiplying the current circulating supply of an asset with the current price of that asset. The total crypto market cap is then gotten by adding up all of the market caps of the active cryptocurrencies in the market. This means that the higher the price of an asset goes, the higher the market cap of that asset.

By extension, this leads to an increase in the total market cap. As coins continue to see increasing prices, the total market cap is going to continue to grow, which, so far, has continued a steady climb towards $2 trillion.

Crypto Getting More Valuable

As inflation rages through countries and wages, interest rates not going up to keep up with the inflation rate, individuals and institutions will continue to look for alternatives that will provide an adequate hedge against growing inflation. Investors have now turned their attention to crypto.

Coins like bitcoin have a deflationary nature which means that they are designed to become more scarce over time. With only 21 million coins programmed to ever go into circulation, bitcoin provides the perfect hedge against inflation. This has sent investors running into the crypto market to own a piece of an asset that will appreciate at a rate faster than the inflation rate.

Related Reading | Here’s What Happens To All Of The Crypto Assets The IRS Seizes

The new EIP-1559 release that sees ETH fees being burned instead of being rewarded to miners also puts Ethereum on a track to become deflationary. This has triggered renewed interest in ETH as one of the cryptocurrencies with the potential to help hedge against inflation over time.

Indicators continue to show that the total market cap will continue to rally following increased interest in the market. $2 trillion continues to be the value target for the market.

Featured image from CoinMarketCap, chart from TradingView.com