You may call it a lucky break, an accident, or a once-in-a-lifetime score. But the sound of rallying among the crypto coins is now turning into a deafening one.
It did begin with Bitcoin as the pacesetter.
The crypto giant on a Wednesday morning rallied to an all-time high of $66, 000 surpassing a previous record of $64 899 that was set in mid-April. This was such an exciting moment for both cryptocurrency and the overall market.
But, many had not perceived that this immense stroke of success was only the tip of the iceberg.
Setting New Highs
Going by data obtained from CryptoSlate, the crypto market capitalization for all cryptocurrencies has exceeded expectations by attaining a new all-time high of $2.7 trillion in total market valuation. This determination has put the industry at the fore of even the most dominant companies like Google and Apple.
The cause of this surge was the growth in market value/cap of individual cryptocurrencies (both stable coins and altcoins), leading to the industry’s collective growth.
Market Capitalization Analysis
According to CoinMarketCap, a price-tracking website, Bitcoin leads the pack with $1.18 trillion in market cap. This is a 46.81% share of the total market cap.
Ethereum is at 18.32%, while Binance Coin, Cardano, and Tether stand at 3.19%, 2.86%, and 2.78%, respectively.
Market Cap Chart from CoinMarketCap
The top ten crypto coins had their market caps exceeding $30 billion each as of press time. At the same time, it was an average of not less than $10 billion per asset for those in the top 20.
A market cap is an essential tool for capturing the overall health of any economy.
State of the Cryptocurrency Market
Since the beginning of this year, the industry’s total market cap, which was $770 billion, has now tripled. And while such growth may bring joy to the masses and inspire confidence among the timid members of the community. Regulators and financial experts continue to raise the alarm for different reasons.
The regulators are worried that cryptocurrencies could threaten the stability of the traditional financial system. While the financial experts advise us to be cautious while buying coins at an all-time high due to the highly volatile nature of some cryptocurrencies.
For instance, on Wednesday when Bitcoin hit its all-time high, Anjali Jariwali, a certified financial planner, public accountant, and founder of Fit Advisors, told CNBC Make It that,
“Usually when an investment hits an all-time high, that is the least ideal time to buy… I think it makes sense to wait and see what happens versus buying at an all-time high.”
And though this may be true, the idea and the feeling of acceptance of cryptocurrencies among some big Wall Street firms as a legitimate asset keeps encouraging more people to invest.
The other day, the Securities and Exchange Commission also announced that it would allow the first U.S Bitcoin futures (ETFs). A move that, on implementation, is set to keep the bullish momentum going.