Crypto market capitalization breaks the trillion dollars after a spectacular upturn
Crypto market capitalization breaks the trillion dollar mark after a spectacular upturn
The combination of all crypto-currencies has just reached a billion dollars, while Bitcoin and ether will continue to increase.
The total capitalization of the crypto-currency market, an important indicator of the overall health of the digital asset class, topped $1 trillion for the first time at 19:00 ET on Tuesday, January 6. Bitcoin briefly topped $37,000 at the same time, setting a new record.
According to market capitalization, the crypto asset class has nearly doubled over the last month, as Bitcoin (BTC) reached new all-time highs and the ether (ETH) exceeded $1,100 for the first time in the last three years. Both assets combined represent approximately two-thirds of the total market.
The gravitational pull of BTC and Ether on the market has seen dozens, if not hundreds, of crypto-currencies, reporting double-digit percentage returns this past week.
This $1 trillion capitalization was reached only days after the market surpassed the 2017-18 bull market highs. During the latest upward cycle in early 2018, the combined market capitalization reached approximately $830 billion, according to CoinMarketCap.
By then, altcoins peaked at nearly $547 billion after Bitcoin retreated from its December 2017 high. Today, the altcoin market is worth less than half that total, underscoring Bitcoin’s absolute dominance so far in the current cycle.
Generally, Bitcoin’s bullish cycles pave the way for a subsequent altcoin spike, which is often greater than the initial BTC increase. Called ‘altseason’ by the crypto community, the parabolic rise of altcoins can occur quickly, leaving investors with little time to prepare.
Some observers of crypto predict a 2021 increase for Bitcoin and altcoins. They cite for their optimism the growing institutional demand for BTC, the ubiquitous presence of crypts on ramps, and the natural ebb and flow of four-year market cycles.