According to Goingecko, the market value of all existing cryptocurrencies surpassed $ 2 trillion on April 5, fueled by the impressive growth of Bitcoin (BTC), Ether (ETH) and other altcoins in 2021.
The cryptocurrency market as a whole has become almost as valuable as Apple, the second largest in the world after Saudi oil giant Aramco.
The achievement also came less than three months after the cryptocurrency market topped $ 1 trillion for the first time on January 7, when Bitcoin was worth around $ 33,000.
Will the Ethereum and Altcoin beef market continue?
Several major catalysts have propelled Bitcoin and Ether to new heights in recent months.
Financial institutions like PayPal and Visa are starting to actively support cryptocurrencies as Bitcoin leads the cryptocurrency market in a bullish trend.
Bitcoin underwent several short-term corrections in 2021, but it has now remained above $ 50,000 for about a month with low volatility compared to altcoins, preventing the ETH and altcoin market from seeing a sharp drop.
In fact, Bitcoin’s volatility has dropped to its lowest level since November 2020, as the price of BTC has risen between $ 55,000 and $ 60,000 in recent days.
Bitcoin Volatility Index (30-day average). Source: Bybt
During the same period, the price of ETH surged and the pressure on Bitcoin reached a new all-time high of over $ 2,000.
A trader alias “Rekt Capital” attributed the strong performance of ETH to the consolidation of bitcoins below $ 60,000. He wrote:
“#BTC is still consolidating in this area. It was this consolidation that helped push the ETH dollar to consistent highs. You could say #ETH is leading the market when $ BTC is trying to catch up. So far, a good sign is that orange resistance is all over the place. forces trying to reject #bitcoin.
One-day BTC / USD price chart (Coinbase) at high levels. Source: Rekt Capital, TradingView
Fund managers and investors in the cryptocurrency market are generally optimistic about the short and medium term prospects for the development of cryptocurrencies.
Jonathan Habicht, partner at Monrock Capital, said:
“I know a lot of people who are just waiting to increase their positions in BTC $ ETH and large altcoins during big drops, and they are definitely not the only ones. A bear market is not an option for the foreseeable future. ”
As long as the strength of the ETH / BTC pair remains the same, and Bitcoin does not see large sales, the short-term outlook for the cryptocurrency market remains very optimistic for the period from April to summer.
Coinbase IPO Supports Market Sentiment
On April 2, Coinbase, the largest cryptocurrency exchange in the US, announced that the US Securities and Exchange Commission (SEC) had approved the S-1 dossier.
Coinbase is expected to be listed on the Nasdaq on April 14, making it a listed company on the US stock market. The company stated:
“We are pleased to announce that the SEC announced earlier today that the S-1 filing is valid and that we expect to be directly listed with Class A shares traded on @ NASDAQ under the COIN index symbol on April 14, 2021.”
The inclusion of Coinbase in the US stock market is likely to increase the demand for cryptocurrencies as it attracts investors to the traditional financial market.
Depending on the performance of the stock, it can also swap tokens like Binance Coin (BNB), FTX Token (FTT), Huobi Token (HT), SushiSwap’s SUSHI, Uniswap’s UNI, and others to rally, reflecting COIN’s progress.
At the same time, some analysts believe that a Coinbase listing could lead to significant volatility in the cryptocurrency market, if not pressure on prices, as the date corresponds to the expiration date of large BTC options.