On Tuesday, cryptocurrency market capitalization surpassed $1 trillion, boosted by a break in the volatility that has gripped global markets this week. Bitcoin surpassed the $20,000 mark on Tuesday and is currently worth over $18,858.
Bitcoin BTC Surpasses $20,000; Is Ethereum Next?
The gains in efficiency amid a period of solitude in global markets following savage selloffs in stocks, bonds, and commodities in the face of dramatically tightening monetary policy to combat inflation and fears of a recession.
Over the last month, digital tokens have outperformed traditional assets, raising hopes that the worst is over for crypto: the MVIS CryptoCompare Digital Assets 100 Index lost about 1% during that time period, compared to losses of 6% for global bonds, over 10% for global stocks, and 11% for commodities.
Katie Stockton, founder of Fairlead Strategies LLC, a technical analysis research business, stated in a letter on Monday:
“Our short-term gauges support a rebound this week,” Katie Stockton, founder of Fairlead Strategies LLC, a research firm focused on technical analysis. However, we only feel comfortable moving to a short-term neutral stance because we expect the bounce to fail quickly.”
Bitcoin is almost worth $20,000, a far change from it’s all-time high of around $69,000 set in November of last year. According to CoinGecko statistics, the global market value of digital tokens is $2 trillion lower than the high in 2021.
According to James Butterfill, head of research at CoinShares, investor interest in digital assets is “tepid.” He did, however, add that the enthusiasm surrounding the update of the Ethereum blockchain, the most commercially important network, has aided sentiment.