Thanks to steady inflows into spot Bitcoin exchange-traded funds (ETFs) and good market mood, the overall market capitalization of cryptocurrency has surpassed $2 trillion for the first time since April 2022.
The world’s largest cryptocurrency by market capitalization, Bitcoin, had a price surge that propelled it to a multi-year high of $57,513, while Ether saw a 7% increase to rest at $3,270 at the time of writing.
Other popular altcoins were also showing green lights, with Solana rising 9% in the previous day to $110. During the same time frame, XRP, Cardano, and Avalanche all had gains of 5.3%, 7%, and 6.5%, respectively. Dogecoin, which is ranked tenth, saw double-digit gains, increasing 15% to $0.09779.
According to data from CoinMarketCap, their combined efforts have resulted in a 7.7% surge to the value of the global cryptocurrency market, pushing it to a 22-month high of $2.14 trillion.
In comparison, the cryptocurrency market is currently valued at approximately $33 billion, surpassing both Amazon and Alphabet, the parent company of Google, by $42 billion.
In just a few months, the cryptocurrency market has more than doubled.
While some, like The Kobeissi Letter, expressed joy with the return of Bitcoin to the $2 trillion level, others questioned whether “new all-time highs are ahead for Bitcoin” on the social media site X.
The Kobeissi Letter’s commentators pointed out that the overall market capitalization of cryptocurrencies had “more than doubled from its recent low” of $978 billion, which was set on September 11, 2023.
The market capitalization of cryptocurrencies, according to independent technical analyst Crypto Damus, is $2.06 trillion, and it is getting close to a crucial resistance level.
With just 50% remaining until the $3 trillion all-time high is recaptured, he published the following chart with his over 36,000 followers on X, asking them to speculate about potential new price discovery.
Prominent cryptocurrency analyst Voice of Crypto described the rise above $2 trillion in total market capitalization as “extraordinary” and shared a graphic with all the main cryptocurrencies trading in the green.
Market sentiment favors cryptocurrency pricing.
Since the fear and greed index is displaying “extreme greed” at 79 on February 22 (as reported by Alternative), the market is enjoying a bullish vibe.
In November 2021, when the price of the first cryptocurrency hit an all-time high of $69,000, the index was last in the “extreme greed” zone.
The index will probably spend a considerable amount of time in the “extreme greed” zone during significant gains. But Alternative cautions, “The market is due for a correction when investors are getting too greedy.”
The graphic below, which was uploaded by market analyst Bitcoin Suisse, indicates that the market sentiment is also in the “extreme greed” range at 79.
“Both equities and cryptocurrency are trading at multi-year or all-time highs, and market sentiment is currently extremely greedy for both.”
