• The total cryptocurrency market capitalization recently broke above the $900 billion mark on Jan. 12.
• Bitcoin has gained 15.7% year-to-date, while some altcoins have gained 50% or more in the same period.
• The recent rally has been attributed to the U.S. Consumer Price Index (CPI) data released on Jan. 12, which confirmed the thesis that inflation was continuing to drop.
The total cryptocurrency market capitalization recently achieved a two-month high on Jan. 13, after breaking above the $900 billion mark on Jan. 12. This 15.5% year-to-date gain sounds promising, however, the level is still 50% below the $1.88 trillion crypto market cap seen before the Terra-Luna ecosystem collapsed in April 2022.
Bitcoin has gained 15.7% year-to-date, however, a different scenario has emerged for altcoins, with a handful of them gaining 50% or more in the same period. This has led to crypto traders chasing after neutral-to-bullish options as Bitcoin price targets $20,000 and the total crypto market cap surges above $900 billion.
The recent rally has been attributed to the U.S. Consumer Price Index (CPI) data released on Jan. 12, which confirmed the thesis that inflation was continuing to drop. This hopeful news has been met with skeptical optimism from investors, especially after the recent struggles of recapturing a $1 trillion market capitalization in early November. That rally to $1 trillion was followed by a 27.6% correction in three days and it invalidated any bullish momentum that traders might have expected.
Unfortunately, the same cannot be said for crypto companies, as New York-based Metropolitan Commercial Bank (MCB) announced on Jan. 9 that it would close its crypto-assets vertical due to changes in the regulatory landscape.
Despite the current market conditions, crypto investors remain optimistic that the market capitalization will eventually reach the $1 trillion mark. Many investors are expecting Bitcoin’s price to move towards $20,000 as the total crypto market cap continues to rise above $900 billion. As the market continues to recover, it will be interesting to see how the crypto space evolves and if the market capitalization can reach heights it has never seen before.