The entire cryptocurrency market performance has recently experienced a bull run, conciding with the soaring of Bitcoin value. The market is shaped by various factors such as competition, regulation, sentiment , adoption and innovation, among others. The crypto market cap is the total value of all digital assets in circulation. The current total global market cap is approaching $2 trillion, sparking speculation about what lies ahead.
Crypto Market Overview
The total global cryptocurrency market cap is reporting $1.96 trillion today, experiencing a 0.3% increase over the last 24 hours, according to CoinMarketCap. The total market volume has sored 0.86% to $86.84. Decentralized finance (DeFI) claims 8.15% of the total crypto market volume, contributing $7.08.
On the other hand, stable coins account for 91.2% of the total market volume at $79.2 billion. Bitcoins dominates the crypto market claiming 52.28% of the entire market cap, though experiencing a slight decrease of 0.29% over the day.
Bitcoin’s Resilience and Market Cap Milestone
Bitcoin, the leading cryptocurrency, is halfway to the $100 mark, hovering around $52,000 following a broad rally in the cryptocurrency market. This surge has also propelled Ether, the second-largest token, back to its pre-TerraUSD collapse levels, with Bitcoin’s year-to-date gain reaching an impressive 113.15%.
Moreover, the bitcoin price surge lifted the market capitalization of the rest of digital assets close to $2 trillion for the first time since April 2022. Despite minor fluctuations, Bitcoin and Ether have recorded gains of 0.2% and 1.5%, respectively, with Ether trading at $2,844.14. Ethereum price has recovered reaching its highest peak since August 2022, touching the $2,100 level in mid-April 2023.
Shifting Market Sentiment
The overall sentiment in the crypto market has transitioned from “fear” to “neutral” and, more recently, to “greed.” Bitcoin’s exceptional rise since October 2023, coupled with specific sector-specific factors such as the debut of United States exchange traded funds (ETFs) dedicated to the token, has contributed to this shift. These ETFs, initiated by major financial institutions like BlackRock and Fidelity Investments, have collectively attracted a net inflow of US$3.9 billion since their launch on January 11. Additionally, the anticipation surrounding the Bitcoin halving scheduled for April adds further support, as historical data suggests a potential boost to prices.
Crypto Market Challenges
Despite the market’s bullish momentum, challenges persist. The crypto industry remains susceptible to high volatility, regulatory uncertainties, and intense competition. Recent developments, such as Binance Chief Changpeng Zhao pleading guilty to anti-money laundering violations, underscore the regulatory scrutiny facing the sector.
Looking Ahead
Several factors will influence the course of the cryptocurrency market. The Federal Reserve’s decision to pause its rate hike cycle in June 2023, coupled with global inflation concerns, could drive further interest in cryptocurrencies as alternative assets. Additionally, ongoing regulatory developments and macroeconomic trends will shape investor confidence and market dynamics.
The current technical analysis of the cryptocurrency market presents a mixed picture, with some indicators suggesting potential overbought conditions while others indicate a short-term bearish sentiment. Moving averages predominantly show a buy signal, indicating a positive trend supported by indicators like EMA and SMA. The MACD Level also provides a buy signal, reinforcing upward momentum.
However, there are indications of a slowdown in market momentum, as suggested by the Momentum oscillator. The approaching 2 trillion total cryptocurrency market cap could act as a significant psychological resistance level, potentially triggering increased volatility or a market correction.