The cryptocurrency market is recovering, now reflected in its overall market capitalization. As Bitcoin and other altcoins soar in price, the collective growth has been reflected in the market’s total value, which has now surpassed $2.7 trillion.
The year has unravelled bullishly for crypto assets as demand for Bitcoin grows with the adoption of Spot Bitcoin ETFs. In addition, alternative digital assets are also experiencing a bullish rally as price value and trading volume soared to unprecedented levels.
Over the past weeks, the leading cryptocurrencies have also recorded notable increases in market capitalization. As a result, the global crypto market cap has reclaimed levels that were last seen two years ago.
The bullish performance strengthened sentiments among market players who were convinced that the market had fully recovered. It also fuels speculation that 2024 might kickstart a long-term rally for the overall crypto market.
Increased ETF demand amongst factors boosting market cap value
At report time, the global cryptocurrency market is worth $2.72 trillion, a 3.88% increase from its 24-hour high. The newly attained milestone also marks a 140.22% increase in market value over the past year. The global market cap value measures the market value of all cryptocurrencies, and with Bitcoin being the most valued asset, its $1.4 trillion market cap currently represents a Bitcoin dominance of 50.45%.
The increase in ETF demand is fueling the upsurge in collective market cap. Historically, increased demand for ETFs has driven asset market cap value to new levels, and the current market run is no exception.
However, market volatility could affect market value in the long term. Historically, bear trends have triggered a downward trend and resulted in a decline in collective market cap.
At report time, both altcoins and Bitcoin are securing significant gains while clearing off losses from the previous year.
As the week kicks off, Bitcoin is trading at $72,214 while the broader altcoin market makes a recovery. Leading altcoins Ether BNB and SOL are recording an increase in daily gains. Sentiments amongst key players are still largely positive, with some analysts hinting at an extended rally into the coming week.
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