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For the first time, the total market value of all cryptocurrencies exceeds $2 trillion.
According to Goingecko numbers, the total market capitalisation of all cryptocurrencies in existence reached $2 trillion on April 5, followed by the remarkable rise of Bitcoin (BTC), Ether (ETH), and other altcoins in 2021.
The blockchain industry as a whole has been roughly as valuable as Apple, the world’s second-largest firm after Saudi Arabia’s oil giant, Aramco.
The achievement came less than three months after the cryptocurrency industry reached $1 trillion for the first time on Jan. 7, when Bitcoin was trading about $33,000.
Will the Ethereum and altcoin bull market continue?
Several big catalysts have fueled both Bitcoin and Ether to fresh all-time highs in recent months.
Financial companies such as PayPal and Visa are starting to openly promote cryptocurrencies, with Bitcoin heading the uptrend throughout the cryptocurrency sector.
In 2021, Bitcoin saw many short-term corrections but has now steadily stayed above $50,000 for nearly a month, with low uncertainty as compared to altcoins, stopping both ETH and the altcoin industry from seeing a significant pullback.
In reality, Bitcoin’s volatility has fallen to its lowest level since November 2020, with the BTC price settling between $55,000 and $60,000 in recent days.
During the same time frame, the price of ETH rose and broke out versus Bitcoin, touching a new peak above $2,000.
The good success of ETH, according to a pseudonymous trader known as “Rekt Money,” can be attributed to Bitcoin’s consolidation below $60,000.
“#BTC is still just consolidating inside this range. It is 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 so far is that orange resistance is struggling to reject #Bitcoin.”
Fund managers and investors in the crypto market are generally optimistic about the short- to medium-term trajectory of cryptocurrencies.
Jonathan Habicht, a partner at Moonrock Capital, said:
“I know so many people who are just waiting to increase their $BTC $ETH and major Altcoin positions during larger dips and they are surely not the only ones. Bear market is not an option for the foreseeable future.”
As long as the ETH/BTC pair maintains its strength and Bitcoin does not experience a significant sell-off, the cryptocurrency market’s short-term outlook for April and into the summer remains very positive.
Coinbase IPO buoying market sentiment
Coinbase, the largest cryptocurrency exchange in the United States, reported on April 2 that the Securities and Exchange Commission (SEC) had authorised its S-1 application.
Coinbase is due to be listed on the Nasdaq market on April 14, becoming a publicly traded company in the United States. The company said:
“We’re happy to announce that earlier today, the SEC declared our S-1 registration statement effective and that we expect our direct listing to occur on April 14, 2021, with our Class A common stock trading on the @NASDAQ under the ticker symbol COIN.”
The listing of Coinbase on the U.S. stock exchange would almost definitely boost interest for cryptocurrencies because it would draw the attention of conventional financial market investors.
Depending on how the stock performs, it can cause exchange tokens such as Binance Coin (BNB), FTX Token (FTT), Huobi Token (HT), SushiSwap’s SUSHI, Uniswap’s UNI, and others to rally, mirroring the momentum of COIN.
At the same time, some observers assume that Coinbase’s IPO would trigger significant volatility, if not downward price pressure, in the cryptocurrency market because it coincides with a major BTC options expiry date.