Bitcoin’s surge above $57,000 leads to crypto market’s $2T rebound in value.

The crypto market has surpassed the $2 trillion mark, marking the first time since April 2022. This achievement can be attributed to positive market sentiment and consistent inflows into spot Bitcoin exchange-traded funds (ETFs), which have driven up the price of Bitcoin (BTC).
Bitcoin’s price rally has propelled the largest cryptocurrency to a multiyear high of $57,513, while Ether (ETH) has also experienced a 7% increase and is currently resting at $3,270.
Other top altcoins have also seen gains, with Solana’s SOL rising by 9% in the past 24 hours to reach $110. XRP, Cardano’s ADA, and Avalanche’s AVAX have also experienced gains of 5.3%, 7%, and 6.5% respectively in the same period. Dogecoin (DOGE), ranked 10th, has seen a significant increase of 15% and is now valued at $0.09779.
These combined efforts have led to a 7.7% increase in the global crypto market value, reaching a 22-month high of $2.14 trillion, according to data from CoinMarketCap. To put it into perspective, the crypto market is now $33 billion larger than Amazon and $42 billion larger than Google parent Alphabet.
Crypto enthusiasts have eagerly celebrated the return to the $2 trillion mark, with some speculating whether new all-time highs are in store for Bitcoin. Total crypto market capitalization has more than doubled from its recent low of $978 billion reached on September 11, 2023, according to commentators at The Kobeissi Letter. Independent technical analyst Crypto Damus has noted that the crypto market cap is approaching a critical resistance level and has shared a chart on social media, wondering what new price discoveries lie ahead.
Another analyst, Voice of Crypto, has published a chart showing major cryptocurrencies trading in the green, describing the move above $2 trillion in total market cap as “extraordinary.”
The positive market sentiment is reflected in the Fear & Greed Index, which is currently at 79, indicating “extreme greed.” The last time the index was in the “extreme greed” zone was in November 2021 when Bitcoin reached its all-time high of $69,000. However, Alternative warns that when investors become too greedy, it usually signals a market correction.
The rally in the crypto market is mainly driven by Bitcoin, with strong demand for spot ETFs. Meanwhile, outflows from the Grayscale Bitcoin Trust (GBTC) have reached their lowest volume ever at $22 million. Data from Farside Investors shows that outflows from GBTC have been slowing for the third consecutive day. CoinShares’ reporting reveals that last week, BTC investment products accounted for 99% of all crypto fund inflows, with $569.5 million flowing into Bitcoin. Additionally, Bitcoin ETFs have seen a total of $5.5 billion in inflows since their market debut on January 11.
The Bitcoin ETFs are also performing well alongside BTC’s price, with BlackRock’s iShares Bitcoin ETF ranking fifth out of 3,400 ETFs, surpassing Vanguard Group’s top ETF, $VOO, according to ETF analyst HODL15Capital.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.