Bitcoin and other cryptocurrencies appear to be gaining traction, as the first quarter winds down.
Crypto has reached the $2 trillion threshold and is proving surprisingly resilient in the face of global uncertainty.
As of Tuesday, Bitcoin has totally recovered from its early-year losses. BTC fell from $47,733.40 to $35,070.10 in the first 30 days of the year and has since failed to regain ground.
At Monday’s all-time high of $47,765, market leader bitcoin broke free from the confined $34,000-$44,000 bracket it had been trading in for the majority of 2022.
The cryptocurrency is up 18% as a result of a steady rally from a low near $40,000 on March 21. As of Tuesday, the top crypto was trading at $47,899 on Coingecko, 16% in the last seven days.
Bitcoin Shows Positive Signs
Despite the favorable market action, analysts cautioned that it is premature to declare the end of Bitcoin’s price volatility.
Market experts will reserve judgment on the volatility until the price maintains its current advances for at least another week.
Its relative stability, at least compared to recent performance, stands in stark contrast to stock markets, traditional currencies, and even safe-haven gold, which have all been roiled by Russia’s invasion of Ukraine and the Federal Reserve’s tightening.
BTC total market cap at $908.44 billion on the daily chart | Source: TradingView.com
According to futures trading website Coinglass, its 30-day volatility is around 4%, over two-thirds that of June 2021. On March 16, this year’s high was 4.56%.
This indicator reveals a currency’s deviation from its own regular norms, and bitcoin has continued to see wild swings, including a 17% spike on March 1.
It is, however, far less volatile than it was in 2021, when it was capable of fluctuating by up to 40% in a single day.
Touching The $2 Trillion Mark
According to analytics firm CoinMarketCap, the cryptocurrency market’s total worth exceeded $2 trillion on Friday.
To put it into perspective, on Nov. 10, when bitcoin hit $69,000, the market briefly surpassed $3 trillion.
The slow climb back above $2 trillion has been supported by the proliferation of coins and tokens – CoinMarketCap now lists 18,511 cryptocurrencies, an increase of roughly 5,000 since November.
While Bitcoin continues to be the most valuable cryptocurrency, its market share has gradually decreased from 70% of total value in early 2021 to 42% on Tuesday.
Numerous cryptocurrency investors believed they could discern bitcoin’s fate in advance of the temperamental cryptocurrency abandoning them financially.
Meanwhile, Ethereum (ETH) reached a daily high of $3,431 per unit around the same time as Bitcoin (BTC).
At the moment, bitcoin (BTC) controls approximately 40.3% of the $2.26 trillion market, while ethereum (ETH) controls 18.1%.
Featured image from Vauld, chart from TradingView.com