The crypto market has reached a major milestone, surpassing the $2 trillion mark for 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 the price of BTC higher.
Bitcoin’s rally has propelled it to a multiyear high of $57,513, while Ether has also experienced a 7% increase, reaching $3,270 at the time of writing.
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 increased by 5.3%, 7%, and 6.5% respectively during the same period. Dogecoin, ranked 10th, has enjoyed a significant surge of 15% to $0.09779.
As a result of these collective efforts, the global crypto market value has risen by 7.7%, reaching a 22-month high of $2.14 trillion, according to data from CoinMarketCap. To put this into perspective, the crypto market is now $33 billion larger than Amazon and $42 billion larger than Google parent company, Alphabet.
Crypto enthusiasts have celebrated this milestone, with some speculating that new all-time highs may be on the horizon for Bitcoin. The Kobeissi Letter noted that the total crypto market capitalization has more than doubled since its recent low of $978 billion on September 11, 2023. Independent technical analyst Crypto Damus highlighted the approaching critical resistance level, sharing a chart with his over 36,000 followers on X.
Another popular analyst, Voice of Crypto, posted a chart showing all major cryptocurrencies trading in the green, describing the move above $2 trillion in total market cap as “extraordinary.”
The current bullish market sentiment is evident through the Fear & Greed Index, which is currently at 79, indicating “extreme greed” as of February 27, according to data from Alternative. The last time the index reached this level was in November 2021 when Bitcoin reached its all-time high of $69,000. However, Alternative warns that when investors become too greedy, a market correction may be imminent.
The rally in the crypto market is primarily driven by Bitcoin, which has experienced strong demand through spot ETFs. In contrast, outflows from the Grayscale Bitcoin Trust (GBTC) have reached the lowest volume ever recorded at $22 million. Data from Farside Investors shows a slowdown in outflows from GBTC for the third consecutive day on February 26.
Last week, BTC investment products recorded 99% of all crypto fund inflows, with $569.5 million in fund inflows and a total global assets under management of $67.5 billion, according to CoinShares’ reporting. Additionally, Bitcoin ETFs have seen inflows totaling $5.5 billion since their market debut on January 11.
Overall, the crypto market continues to thrive, with Bitcoin ETFs rallying alongside BTC’s price. BlackRock’s iShares Bitcoin ETF is currently ranked #5 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. Investors should conduct their own research and assess the risks before making any investment decisions.