The volatility in the crypto market continued over the weekend as the price of bitcoin climbed just above $21,000 on Sunday. Over the past seven days, bitcoin’s market capitalization is up 23% to around $407,412,657,854 on Monday, with a 24-hour trading volume of around $25,999,307,843. As a result, Bitcoin dominance increased to 41%, followed by Ethereum at 19.3%, according to data from Coinmarketcap.
Trading around $21,149.32 in the early hours of Asian trading on Monday, the overall crypto market rose more than 2.2 percent to $1.03 trillion. Consequently, the largest digital asset has offset the losses incurred during the collapse of FTX and Alameda.
The recent growth in the cryptocurrency market is due to several factors, including high inflation worldwide, FOMO traders, and Bitcoin price action. According to veteran trader Peter Brandt, the crypto market is gearing up for the next big bull market, with possible consolidation for several quarters.
Any idiot can make wild guesses about the markets, so here’s my stupid prediction. In fact, no one knows what this or that market will do. $BTC pic.twitter.com/bpP2ThjnZK
— Peter Brandt (@PeterLBrandt) January 15, 2023
Also, a study of historical data shows that the price of bitcoin has significantly affected the altcoin market. Hence the sign of further bullish sentiment in the cryptocurrency market ahead of the impending correction.
Take a closer look at the Bitcoin market and Crypto Outlook
The bitcoin market is strongly supported by its global adoption, including several institutional ETFs, and its use as legal tender in El Salvador and the Central African Republic. Bitcoin’s scarcity and interoperability give it the potential to overtake the roughly $10 trillion gold market in the coming years. What’s more, gold isn’t as rare as claimed, and space exploration is likely to find celestial bodies filled with this precious metal.
The cryptocurrency market will grow exponentially with the adoption of smart contracts bordering on mere utility. Institutional investors, led by Samsung Asset Management, which introduced the active Samsung Bitcoin Futures ETF, dubbed Sub-Fund, are looking for ways to introduce their balance sheet to the cryptocurrency market.
The largest smart contract ecosystem, Ethereum, has been tracking the performance of bitcoin in the recent past. Ethereum (ETH) is trading at around $1,566 on Monday, up 20% from the last seven days, according to our latest cryptocurrency price oracles. With a market capitalization of around $191 billion, Eth has a 24-hour trading volume of around $6.9 billion.
Crypto-related stocks, including Coinbase and Marathon Digital, are up about 50% and 87%, respectively, over the past five days.
Nicholas Colas, co-founder of analytics firm DataTrek Research, wrote in a note that US Federal Reserve policy still matters, but “other issues such as opening up China, US economic and corporate earnings growth, and positive real rates will struggle. for the attention of investors.