As Bitcoin, Ethereum, and other digital assets move higher, the aggregate market cap of crypto has moved above the $1 trillion mark for the first time in months, according to Coinmarketcap.
Bitcoin garners the lion’s share of the market as the most popular digital currency in the world. Its total market cap now stands at around $437 billion following its most recent rally, where it moved from around $16,000 at the beginning of the year to around $23,000 today.
Aggregate crypto valuations first topped $1 trillion 2-years ago, eventually rocking to around $3 trillion until it reversed the dramatic move in 2022.
Marcus Sotiriou, Market Analyst at GlobalBlock (TSXV:BLOK), says that Bitcoin’s surge over the weekend, rising to a peak of around $23,400, has left a “CME gap” on the Bitcoin CME Futures chart at around $22,400. He believes this is a “magnet for price.” He adds there is also a CME gap at around $17,000 and $20,000, which were formed on this recent aggressive move. Sotiriou also mentioned a surge in NFT buying.
Coinshares reports a different spin on crypto markets, reporting that Bitcoin saw inflows totaling $5.7 million last week, while short-Bitcoin investment products saw inflows totaling USD $25.5 million, the largest weekly inflow since July 2022 ($51 million). At the same time, Coinshares says a large number of altcoins saw inflows, most notable of which were Ethereum, Polkadot, Cardano, XRP, and Avalanche, with $4.2 million, $1.0 million, $0.6 million, and $0.5 million respectively.
So is this a market thaw? A quick pump and trade? Something else? One thing that remains certain is that crypto markets are not for the faint of heart and continue to be a highly volatile asset class.