The total market capitalization of cryptocurrency – a key role in the overall health of the digital asset class – broke $ 1 trillion for the first time ever on Tuesday 6 January at 19:00 ET. Bitcoin rose to $ 37,000 at about the same time, which was a new record high.
Measured by market capitalization, the crypto-asset class has virtually doubled in the past month as Bitcoin (BTC) has broken to new highs of all time and Ether (ETH) has cleared $ 1100 for the first time in three years. Together, both assets make up about two-thirds of the total market.
The gravity of BTC and Ether in the market has seen dozens, if not hundreds, of cryptocurrencies, reporting double-digit returns over the past week.
The trillion-dollar capitalization was reached a few days after the market exceeded the 2017-18 bull market high. According to the CoinMarketCap, the combined market capitalization reached around $ 830 billion during the last cycle peak in early 2018.
At the time, altcoins reached a peak of $ 547 billion after Bitcoin withdrew from its peak in December 2017. The market for altcoin is currently worth less than half the total, and this highlights Bitcoin’s dominance so far in the current cycle.
Typically, Bitcoin’s bull cycles pave the way for a subsequent altcoin rally, which is often larger than the initial BTC stockpile. The parabolic increase in altcoins, called by the crypto community ‘altseason’, can happen quickly, and investors have little time to prepare.
Many crypto observers predict a bullish 2021 for Bitcoin and altcoins. They cite the growing institutional demand for BTC, the ubiquity of crypto-on-slopes and the natural run-off and flow of four-year market cycles for their optimism.