Cryptocurrency Market Surpasses the U.S. Banking System

Cryptocurrency Market With a $2 Trillion Market Cap

The cryptocurrency market has hit major milestones with its total market cap crossing $2 trillion for the very first time in history. With this move, the cryptocurrency market has surpassed the entire U.S. banking system for the first time ever. 

In the ultimate battle between CeFi and DeFi, the latter ecosystem has emerged as a formidable player in global finance and economics. 

CeFi-vs-DeFi Source:CeFi-vs-DeFi (Courtesy:Bianco Research)

In the interesting analysis presented by Bianco Research President Jim Bianco, he writes: “Another double and cryptos become larger than US Financial Companies (Banks + brokers, insurance, exch, fin cos, asset managers, etc.) 4x rise and Cryptos surpasses the value of all global financial companies”

It is interesting to note that it took 10 years for the crypto market to hit a $1 trillion market cap and just 90 days more to add one more trillion to its valuations. The rally in the crypto market since the beginning of 2021 has been unprecedented. 

Looking at the current scenario in the crypto market, Bitcoin (BTC) has been strongly consolidating its position at around $59K while altcoins are helping the market to rally ahead. 

Over the last month, altcoins have shown strong performance adding more than $300 billion to the overall crypto market cap. Besides, the altcoin market rally has also helped to reduce Bitcoin market dominance to 55%. 

Bitcoin (BTC) Consolidates At $59K Amid Improving Fundamentals

Over the last week, Bitcoin (BTC) price volatility has reduced as the world’s largest cryptocurrency has been consolidating in a narrow bandwidth between $57-$59K. While this happens Bitcoin’s on-chain fundamentals continue to improve. 

As per on-chain data provider Santiment, the Bitcoin buy calls have reached a 3-week high at levels last seen on March 13. 

Bitcoin-BTC-Buy-Calls Source: Bitcoin-BTC-Buy-Calls (Courtesy:Santiment)

On the other hand, data from Glassnode shows that Bitcoin miners’ net position has turned overall positive. Meaning, miners are no more selling their newly mined coins for profit-book but rather are accumulating them. The data further notes that “Bitcoin Miners’ Balance just reached a 1-month high of 1,806,815.347”. 

Bitcoin-BTC-Miner-Position Source: Bitcoin-BTC-Miner-Position (Courtesy:Glassnode)

On the other hand, Bitcoin liquidity/supply at the exchange continues to shrink further. As per the Glassnode report, Bitcoin balance on exchanges has reached a two-year low. 

Bitcoin-BTC-Exchange-Balance Source: Bitcoin-BTC-Exchange-Balance (Courtesy:Glassnode)

The institutional interest in Bitcoin remains strong. On Monday, April 5, business intelligence firm MicroStrategy announced an additional $15 million purchase of Bitcoin. Over the last eight month, the company has acquired ~92,000 Bitcoins for an aggregate purchase value of $2.2 billion. 

Also, Grayscale Investments announced that it will turn its GBTC Bitcoin fund into a Bitcoin ETF. This announcement comes just at a time when shares of the Grayscale Bitcoin Trust (GBTC) have been trading at a discount for over a month. On the other hand, there’s been a growing demand for Bitcoin ETF in the market. 

Altcoin News: Etheruem (ETH) Hits All-Time High Above $2100 While XRP Price Crosses $1

The cryptocurrency altcoin market has registered a strong rally over the last month adding over $300 billion to the overall crypto market cap. Over the last week, the altcoin space has caught up the heat again with Ethereum and other altcoins delivering phenomenal returns. 

Over the last weekend, Ethereum (ETH) price surged to an all-time high above $2100 registering strong 18% weekly gains. At press time, ETH is trading at a price of $2112 with a market cap of $44 billion. The institutional demand for ETH has surged in recent times, especially during 2021. 

As we head into Q2 2021, the Ethereum options market is heating up. The ETH options volume and open interest is spiking high. 

Ethereum-ETH-Options-Open Interest Source: Ethereum-ETH-Options-Open Interest (Courtesy:Skew)

Ripple’s XRP has also registered a strong surge gaining nearly 55% over the last week. Earlier today, the XRP price surged 40% for the second consecutive day moving past $1.00 for the first time in three years. On technical charts, XRP has clocked the highest-ever weekly closing suggesting further northward momentum. 

Polkadot’s (DOT) price has 33% over the last week hitting its new all-time high of $45. In an interesting development, the most widely used stable coin Tether (USDT) has been added to the Polkadot network. The next immediate Polkadot price precision is $50. 

Some of the other top-performing altcoins to watch out for include Filecoin (FIL), Chainlink (LINK), Litecoin (LTC), and Stellar (XLM). 

There’s a strong buzz in the crypto market currently that the Kimchi premium, last seen during the 2018 altcoin bull run, has reappeared in the South Korean crypto market. Kimchi premium appears with high investor activity in SK wherein the price of the cryptocurrencies trade at a premium over the global exchanges. So that’s something to watch out carefully as it might lead to heavy sell-offs later. 

Coming to the most heated topic of non-fungible tokens, the NFT market seems to expand further. Recently, Vogue Business reported that the luxury fashion brand industry is looking to dabble into NFTs very soon and Gucci has already confirmed about the same. 

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