The market capitalization of all crypto assets alive surpassed $2 trillion today on 5th April, consistent with data from CoinMarketCap, led by the impressive growth of Bitcoin [BTC], Ethereum [ETH], and other altcoins within this year in 2021.
The cryptocurrency market as an entire has become approximately as valuable as Apple, the second-biggest company within the world after Saudi Arabia’s oil giant, Aramco.
The milestone also comes after 3-months after the cryptocurrency market surpassed $1 trillion for the primary time earlier on 7th Jan. when the worth of Bitcoin was around $33k.
In recent months, several major catalysts have fueled both BTC and ETH to rally strongly to new all-time highs.
Financial institutions, like PayPal and Visa, are starting to actively support crypto assets, with Bitcoin leading the cryptocurrency market’s uptrend.
Within this year in 2021, Bitcoin has faced several short-term corrections but has now consistently remained above $50k for nearly a month, with low volatility compared with altcoins, preventing both ETH and therefore the altcoin market from seeing a severe pullback.
Indeed, Bitcoin’s volatility has dropped to a rock bottom level since November last year as the BTC price has been consolidating between $55k and $60k over the past few days.
Within the same period, the worth of Ethereum rallied and broke out against Bitcoin, reaching a new record high of over $2k, at the reporting time.
A pseudonymous trader referred to as “Rekt Capital” attributed the strong performance of ETH to Bitcoin’s consolidation under $60k. He explained:
“#BTC remains just consolidating inside this range. It’s this consolidation that has helped $ETH breakout to new All-Time Highs. #ETH is arguably leading the market whereas $BTC is trying to catch up. Good sign thus far is that orange resistance is struggling to reject #Bitcoin.”
Fund managers and investors within the cryptocurrency market are generally optimistic about the short- to the medium-term trajectory of cryptocurrencies.
Jonathan Habicht, a partner at Moonrock Capital, added:
“I know numerous people that are just waiting to extend their $BTC $ETH and major Altcoin positions during larger dips and that they are surely not the sole ones. The market isn’t an option for the foreseeable future.”
However, as long as the strength of the ETH/BTC pair remains intact and Bitcoin doesn’t see a serious sell-off, the cryptocurrency market’s short-term outlook remains highly optimistic for April and into the summer.