Crypto Hits $1.2T in Market Cap After Huge 7-Day Influx

Sentiment flips bullish as the crypto narrative turns positive, despite macroeconomic and geopolitical headwinds.

Man is mindblown with the chart.
Created by Kornelija Poderskytė from DailyCoin
  • The total crypto market cap surges to $1.2 trillion.
  • Crypto markets saw massive inflows over the past week.
  • Several bullish catalysts are brewing on the sidelines.

The past two years have been a brutal affair for investors. Plunging prices, dwindling trading volume, and the ever-present threat of regulatory enforcement action have tested the mettle of even the most staunch crypto advocate. Despite this, the crypto market cap recorded a ten-week high following robust inflows, taking the total valuation to $1.2 trillion. 

While this figure is still far below the $3 trillion all-time high achieved in November 2021, surging crypto inflows suggest growing investor confidence in the sector, which is all the more remarkable considering the current fragile macroeconomic and geopolitical outlook.

Total Crypto Market Cap Soars

Since October 16, the crypto markets have had inflows of $76.4 billion, taking the total crypto market cap to $1.213 trillion at the time of writing. This strong run of form recouped the losses triggered by the Evergrande sell-off in mid-August.

Total crypto market cap over the last 30-days per CoinGecko.
Total Crypto Market Cap from CoinGecko.

The top 100’s leading performers of the last seven days were Bitcoin SV, Chainlink, and Solana, which recorded gains of 39.5%, 38%, and 32.8%, respectively. Meanwhile, market leader Bitcoin recorded an increase of 10.6% over the same period at the time of writing. 

2023 has been a mixed bag for the total market cap metric. However, the current year-to-date performance equates to a 45% gain, indicating that investor confidence has grown over the year despite sporadic periods of intense drawdowns. With the year drawing to a close, optimism is stirring over crypto’s outlook for the rest of the year and beyond.

What’s Driving This Run?

The outlook for crypto shines bright as the narrative surrounding a spot Bitcoin ETF approval in the US gathers pace. MN Trading founder Michaël van de Poppe recently stated that the chances of ETF approval have grown substantially and that people should be ready for expected price rises.

Additionally, BlackRock CEO Larry Fink spoke positively about crypto last week, calling the asset class a “flight to quality” amid the deteriorating macroeconomic and geopolitical landscape.

Perhaps the biggest drive of crypto bullishness of late is the coming Bitcoin halving, scheduled to occur in April 2024. Past halvings have been accompanied by massive price spikes, with many analysts expecting the same to happen during this phase.

On the Flipside

  • The crypto market cap and Bitcoin price are still significantly below all-time highs.
  • Market cap is volatile and can sink below $1.2 trillion just as quickly as it reached that milestone.
  • Macroeconomic factors continue to weigh heavily on risk-on assets.

Why This Matters

Although markets remain locked in crypto winter, investor sentiment shows signs of a thaw. This renewed optimism, paired with a spate of bullish catalysts ahead, offers hope for crypto investors who have endured the savagery of the past two years. 

Learn more about South Korea’s burgeoning crypto market here:
South Korea’s Crypto Market Cap Leaps to $21.1 Billion in H1

Discover how Tether intends to further tackle ongoing skepticism about its solvency here:
Live Tether Reserve Data to Dispel “Fully Backed” Doubts

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.