Crypto Market Reclaims $2 Trillion Threshold Amid Rally in Leading Cryptocurrencies
Summary:
The cumulative cryptocurrency market cap has reclaimed the $2 trillion threshold, driven by positive market sentiment and consistent inflows into Bitcoin spot ETFs. Leading cryptocurrencies have seen significant growth, pushing the global crypto market value to a 22-month high of $2.14 trillion. The market is currently larger than both Amazon and Google’s parent company Alphabet, having more than doubled its value from recent lows. This surge is attributed to high demand for Bitcoin, fueled by spot ETF inflows and record low outflows from Grayscale Bitcoin ETF.
After a hiatus since April 2022, the cumulative capitalization of the crypto market has once again surpassed the $2 trillion mark. This resurgence has been fueled by a favourable market perception and unwavering funds inflow into BTC spot ETFs, elevating BTC's value. Bitcoin (BTC), the globe's topmost cryptocurrency by market cap, saw a stellar uptrend, peaking at a multi-year high of $57,513. Ethereum (ETH) also had a 7% spike to settle at $3,270 at the time of this report. Other leading altcoins also saw considerable upward momentum with Solana (SOL) rising 9% over the last day to $110. XRP, Cardano (ADA) and Avalanche (AVAX) also gained 5.3%, 7%, and 6.5% respectively during the same timeframe. Dogecoin (DOGE) saw a 15% surge to $0.09779, the largest increase among the top ten coins. The net result of these increases was a 7.7% surge in the global crypto market value, hoisting it a 22-month high of $2.14 trillion according to CoinMarketCap data. The crypto market now outruns Amazon by $33 billion and is $42 billion more sizable than Google’s parent company Alphabet.
Crypto enthusiasts were swift to celebrate on social media when the market cap returned to $2 trillion. Crypto observers like The Kobeissi Letter are now curious to see if Bitcoin is on the path to reach new all-time highs. The total market cap of the crypto market now stands at $2.25 trillion, more than doubling its recent low.
Crypto sentiments remain positive, with the fear and greed index reading "extreme greed" at 79 on the Feb 22 report from Alternative. This kind of sentiment hasn't been observed since November 2021, when Bitcoin reached an all-time high of $69,000. During significant rallies, the index may likely stay in the "extreme greed" range for an extended period. However, Alternative cautions that an extremely greedy market could indicate an impending correction.
Analysts attribute this rally in the broader crypto market to Bitcoin, which has been in high demand thanks to spot ETFs as well as Brayscale Bitcoin ETF's (GBTC) lowest ever outflow at $22 million. Data reveals slowing outflows from GBTC over the past few days. The converted Bitcoin ETF reported a net outflow of $44.2 million at the end of the trading week on Feb. 23. CoinShares's data indicates that BTC investment products made up 99% of all crypto inflows last week. Inflows into Bitcoin stood at $569.5 million, pushing the total global assets under management to $67.5 billion.
As reported by Yahoo Finance, Bitcoin ETFs have experienced inflows totaling $5.5 billion since hitting the market on Jan. 11. Overall, CoinShares reports $5.8 billion have flowed into crypto products since they started trading. Bitcoin ETFs including BlackRock's Bitcoin ETF IBIT are also benefitting from the surge in BTC's price, which is now among the top five ETFs out of 3400 and considerably ahead of Vanguard's leading ETF, VOO according to ETF analyst HODL15Capital.
Please note that this news does not consist of investment advice or recommendations. Investments and trading moves carry an inherent risk and users should undertake thorough research before making decisions.
Published At
2/27/2024 10:30:00 PM
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