Bitcoin tops $57,000, crypto hits $2 trillion market cap
The total crypto market capitalization has returned to the $2 trillion level for the first time since April 2022, as positive market sentiment and a consistent move to the spot Bitcoin Exchange Traded Funds (ETFs) have boosted the price of BTC.
The rally in the price of Bitcoin (BTC) brought the world's largest kriptovalyutnogo by market capitalization to a multi-year high of $57,513, while Ether (ETH) recorded a 7% pump to rest at $3,270.
Other top altcoins also flashed green, with Solana (SOL) gaining 9% in the last 24 hours to reach $110. XRP (XRP), Cardano (ADA) and Avalanche (AVAX) increased by 5.3%, 7% and 6.5%, respectively, during the same period. Tenth Dogecoin (DOGE) has made double-digit gains, climbing 15% to $0.09779.
Their combined efforts led to a 7.7% rally in the value of the global crypto market, reaching a 22-month high of $2.14 trillion, according to CoinMarketCap data.
To put that in perspective, the crypto market is now worth $33 billion more than Amazon's and $42 billion more than Google's parent Alphabet.
The crypto market has more than doubled in a few months.
Crypto fans on the X social media platform were quick to celebrate the return to $2 trillion, with some like The Kobeissi Letter asking “new all-time highs ahead for Bitcoin.”
BREAKING: #Bitcoin is now trading above $56,000 for the first time since November 2021.
Bitcoin in 2010 From the 2022 low, it has risen more than 250%, adding $700 billion in value in less than 2 years.
The total market cap of the crypto market now stands at $2.25 trillion, more than double the recent… pic.twitter.com/bwWrASbbRY
— Kobeissi Letter (@KobeissiLetter) February 27, 2024
Commenters on The Kobeissi Letter say the total crypto market capitalization has “more than doubled from its recent low” of $978 billion on September 11, 2023.
Independent technical analyst Crypto Damus sees a crypto market cap of $2.06 trillion, approaching a critical resistance level.
He shared the following chart on X with his more than 36,000 followers, with only 50% predicting what new price gains will occur until the all-time high of $3 trillion is returned.
Prominent crypto analyst Voice of Crypto has released a chart showing all major cryptocurrencies trading in the green, labeling the movement of more than $2 trillion in total market capitalization as “unusual.”
Daily market report
The performance of the #crypto market was extraordinary today, seeing as how the total market cap is over $2 trillion and now sits at around $2.13 trillion. Look at all this green. #VOC #vote of crypto #BTC #ETH #cryptocrypto pic.twitter.com/yfXJh2LJlP
— Voice of Crypto (@VoiceofCrypto2) February 27, 2024
Positive market sentiments bring crypto prices back
According to options data, the support market is running high on high market sentiment as the Fear and Greed Index is showing “Extremely Greedy” at 79 on February 22.
The index was last in the “extreme greed” zone in November 2021, when the price of the pioneer cryptocurrency reached a peak of $69,000.
During strong rallies, the indicator can stay in the “high greed” zone for a long time. However, Alternative warns, “When investors get too greedy, that means the market has to correct.”
RELATED: Spot Bitcoin ETFs Raise 300K BTC As Net Inflow Increases To $6B
Market analyst Bitcoin Suisse has put the chart below showing the market sentiment at 79 in “extremely greedy” territory.
“Crypto and equities are continuing to trade at multi-year or all-time highs, and both are currently at high levels of greed in terms of market sentiment.”
Crypto market rally driven by inflows into crypto products
The rally in the broader crypto market was led by Bitcoin, which saw strong interest on the back of spot ETFs. At the same time, outflows from the Greyscale Bitcoin ETF (GBTC) were recorded as low as $22 million.
For the third consecutive day on February 26, outflows from GBTC slowed, according to data from Farside Investor. The convertible Bitcoin ETF ended the trading week on February 23 with $44.2 million in revenue, and then halved on February 26.
According to CoinShares, BTC investment products accounted for 99% of all crypto revenues last week. Bitcoin received $569.5 million in revenue, bringing total global assets under management to $67.5 billion.
Additionally, Bitcoin ETFs have continued to gain a total of $5.5 billion since they went public on January 11, according to data from Yahoo Finance. In total, crypto products have taken in $5.8 billion in net cash since they started trading, according to CoinShares.
Bitcoin ETFs also rallied against BTC prices with BlackRock Bitcoin ETF IBIT “ranking 5 out of 3,400 ETFs and ahead of @Vanguard_Group's top ETF, VOO,” according to ETF analyst HODL15Capital.
The highest trading volume for Bitcoin ETFs today is $IBIT #5 of 3,400 ETFs and well ahead of Vanguard_Group's top ETF, $VOO $FBTC is also very strong. Let's go $BTC pic.twitter.com/dbgJoleki9
— HODL15Capital (@HODL15Capital) February 27, 2024
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
