- The total crypto market cap reaches a new psychological milestone.
- Prices are still below the November 2021 market top.
- Expectations for altseason are building.
After a crushing multi-year crypto winter that saw prices and sentiment plummet, it seems the worst has passed. Signifying this passing of bearishness, the total crypto market cap crossed above the $2 trillion mark on February 20, marking a 98-week high to elicit hope for more gains to come.
Total Market Cap Hits Turning Point
The total crypto market cap recaptured $2 trillion on Tuesday, spurring a wave of positive market sentiment. The crypto market has been caught in an uptrend since Q4 2023, bouncing from a local bottom of $1.05 trillion in mid-October 2023, as Bitcoin ETF hype took hold to send prices higher.
Following the $2.97 trillion market top in November 2021, prices dipped considerably as wave after wave of disasters unfolded during crypto winter. However, the turning point came after the FTX implosion in November 2022, which saw market cap valuations find support at $830 billion.
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While the current $2 trillion market valuation is significantly below the market top, the worst appears to be behind us. Bullish Bitcoin price action has led the recovery, with the leading cryptocurrency increasing 92% since mid-October 2023.
Per historical patterns, Bitcoin price surges often precede rises in altcoins as profits get cycled into higher-risk, higher-reward bets. Although altseason is not yet here, several analysts have stated that it is only a matter of time before it arrives.
Altseason Near?
Several analysts have predicted an imminent altcoin run, including trader “Mikybull 🐂Crypto,” who noted that the altcoin market cap’s 100-day exponential moving average (EMA) has crossed above the 200-day EMA to form “a rare bullish cross.”
Likewise, trader Ash Crypto believes an “epic altseason” will arrive once Ethereum hits $3,000, at which point “WE ARE SO F*CKING BACK.” Ethereum is priced at $2,920 at the time of writing.
On the Flipside
- YouTuber Lark Davis predicted a $10 trillion market cap top.
- The total market cap dipped to $1.95 trillion during writing, demonstrating the short-term price fluctuations that can occur in crypto markets.
Why This Matters
Reaching the $2 trillion market cap milestone once again solidifies the narrative that the market has turned the corner following a brutal bear phase. While prices may fluctuate in the short term, the four-month uptrend may be the beginning of the biggest bull market in crypto history.
Read about Binance research suggesting the bull market is here:
Are We Entering a Bull Market? Binance Report Suggests So
Find out more on the return of metaverse hype here:
Forbes Revives Metaverse Hype with Acquisition of Sandbox Land
