Altcoins
Cryptocurrency Market Cap Hits $2 Trillion: Will Altcoins Reverse Course?
Armani Shirinyan
Cryptocurrency Market Could Reverse Soon, But Don’t Expect an Explosive Rally
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The cryptocurrency market Market cap is an important metric that reflects the size and linearity of the market at a given time. However, it is generally considered a broad metric not really useful for finding entry or exit points. But at the same time, there is a psychological threshold that could be used for support or resistance levels.
A major psychological and technical milestone was recently reached when the market capitalization of all cryptocurrencies, excluding Bitcoin, has surpassed the $2 trillion mark. This significant turning point serves as a major support area and sets the stage for future bullish momentum in the altcoin market.
The market cap has returned to the “Reload Zone”, which is located between the 61.8% and 78.6% Fibonacci retracement levels. These levels have historically been important for identifying possible turning points. Strong buying interest is evident from the market’s propensity to rebound from these zones. It looks like the market is poised for a major rally based on the current setup.
The chart shows a possible trajectory for the market cap, which would indicate a significant increase from current levels and take it to $1.417 trillion. As investors prepare for a period of recovery and growth, this projection is in line with the general bullish sentiment emerging on the market.
This optimistic outlook is influenced by several factors. The first is that risk assets such as cryptocurrencies could benefit from an increase in liquidity caused by possible Federal Reserve rate cuts. Second, the positive sentiment is reinforced by developments in the regulatory arena, such as the SEC’s handling of Ethereum ETF deposits and the CFTC’s stance on cryptocurrency regulation.
Institutional interest is also rising, as seen by the growing involvement of major financial institutions such as JPMorgan and Goldman Sachs in the cryptocurrency space. Further evidence of a market-wide recovery comes from JPMorgan’s optimistic forecast for Bitcoin’s August rebound and Goldman Sachs’ upcoming tokenization initiatives.
About the author
Armani Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.