Bitcoin’s climb above $57,000 propels Crypto’s market cap back to $2T.

The cryptocurrency market has surged past the $2 trillion mark for the first time since April 2022, driven by positive market sentiment and increased inflows into spot Bitcoin exchange-traded funds (ETFs). Bitcoin’s price rally propelled the largest cryptocurrency to a multiyear high of $57,513, while Ether saw a 7% increase to reach $3,270. Other top altcoins, including Solana’s SOL, XRP, Cardano’s ADA, Avalanche’s AVAX, and Dogecoin, also recorded gains ranging from 5.3% to 15%. As a result, the combined efforts of these cryptocurrencies led to a 7.7% increase in the global crypto market value, reaching a 22-month high of $2.14 trillion. This puts the crypto market ahead of companies like Amazon and Google parent Alphabet in terms of market capitalization. The market has more than doubled in just a few months, with total crypto market capitalization now more than double its recent low of $978 billion in September 2023. Technical analysts have noted that the market is approaching a critical resistance level and are speculating on whether new all-time highs are ahead for Bitcoin. Market sentiment is currently extremely bullish, as indicated by the Fear & Greed Index, which is at 79, the same level seen when Bitcoin reached its previous all-time high of $69,000 in November 2021. However, experts warn that when investors become excessively greedy, a market correction is usually imminent. The rally in the crypto market is largely driven by inflows into Bitcoin spot ETFs, with outflows from the Grayscale Bitcoin Trust hitting the lowest volume ever at $22 million. BTC investment products recorded 99% of all crypto fund inflows last week, with $569.5 million flowing into Bitcoin. Bitcoin ETFs have seen inflows totaling $5.5 billion since their market debut on January 11, and the overall net inflow for crypto products stands at $5.8 billion. Notably, BlackRock’s iShares Bitcoin ETF is currently ranked fifth among all ETFs, surpassing Vanguard Group’s top ETF. As always, readers are advised to conduct their own research when making investment decisions.