By
Temitope Olatunji
April 24th, 2024
The Bitcoin market is heavily bolstered by global adoption including several institutional ETFs and the fact that it is used as legal tender in El Salvador and the Central African Republic.
The crypto market volatility continued during the weekend with Bitcoin price rallying slightly above $21K on Sunday. Up 23 percent in the past seven days, Bitcoin’s market capitalization stands at around $407,412,657,854 on Monday with a 24-hour trading volume of about $25,999,307,843. As a result, Bitcoin’s dominance has increased to 41 percent closely followed by Ethereum with 19.3 percent according to market data from Binance-backed Coinmarketcap.
Trading around $21,149.32 during the early Asian trading hours on Monday, the total crypto market is up over 2.2 percent to $1.03 trillion. As a result, the largest digital asset has obliterated losses incurred during the FTX and Alameda’s implosion.
The recent crypto market cap has contributed to several factors including high inflation worldwide, traders’ FOMO, and Bitcoin’s price action. According to veteran trader Peter Brandt, the crypto market is preparing to begin the next major bull market with possible multi-quarter consolidation.
Any idiot can make wild guesses about markets, so here is my dunce-hat prediction. In reality, nobody has a clue what any given market will do. $BTC pic.twitter.com/bpP2ThjnZK
— Peter Brandt (@PeterLBrandt) January 15, 2023
Furthermore, the study of historical data shows Bitcoin price has significantly influenced the altcoin market. Hence indicating more upside in the crypto market before an imminent correction.
Closer Look at Bitcoin Market and Crypto Outlook
The Bitcoin market is heavily bolstered by global adoption including several institutional ETFs and the fact that it is used as legal tender in El Salvador and the Central African Republic. Bitcoin’s scarcity, and interoperability, have given it the potential to overtake Gold’s market, valued at around $10 trillion, in the coming years. Moreover, Gold is not as scarce as purported with chances of space exploration finding heavenly bodies packed with the precious metal.
The crypto market is expected to grow exponentially with the adoption of smart contracts at the precipice of mainstream utility. Institutional investors led by Samsung Asset Management, which unveiled the Samsung Bitcoin Futures Active ETF dubbed the Sub-Fund, are looking at ways to get their balance sheet exposed to the crypto market.
The largest smart contract ecosystem, Ethereum, has followed Bitcoin’s performance in the recent past. According to our latest crypto price oracles, Ethereum (ETH) is exchanging at around $1,566 on Monday, up 20 percent in the past seven days. With a market capitalization of approximately $191 billion, Eth has a 24-hour trading volume of about $6.9 billion.
Notably, crypto-related stocks including Coinbase Global Inc (NASDAQ: COIN) and Marathon Digital Holdings Inc (NASDAQ: MARA) are up approximately 50 percent and 87 percent respectively in the past five days.
Nicholas Colas, the co-founder of the market analysis firm DataTrek Research, wrote in a note that the US Federal Reserve’s policy still matters, but “other issues like China’s reopening, the pace of US economic and corporate earnings growth, and positive real rates will jostle for investors’ attention.”