A symbolic threshold for cryptocurrencies. The total capitalisation of crypto assets has once again surpassed $1 trillion, as the market has turned green in recent weeks. As a direct result of this good weather, miners and investors are globally no longer selling at a loss.
Cryptocurrency capitalization has surged at the start of the year
The respite is welcome, and injects some confidence back into a market that has been badly battered in 2022. And as is often the case, it is the Bitcoin (BTC) price that is leading the way. The queen of crypto-currencies is now trading above $21,000. This corresponds to an increase of +22% over the week:
The price of Bitcoin (BTC) has soared in recent days
The top 10 are showing similar gains: Ether (ETH) is up +18% on the week, Binance’s BNB is up +9% and XRP is up +11%. Special mention should also be made of Solana’s SOL, which is one of the biggest explosions, with +43% over the week and +107% over the last two weeks.
Another consequence of this breakthrough is that Bitcoin has regained some of its dominance, which was declining at the end of last year. The largest cryptocurrency now accounts for 39% of total crypto asset capitalisation, compared to 18% for ETH and 6% for Tether’s stablecoin USDT.
The consequence of these welcome increases is that miners and investors are overall back in the green. A recent report from analyst firm Glassnode confirms the trend:
The average BTC holder is now back in an unrealized profit position.
Same scenario for miners, who have to spend an average of USD 18,795 to mine one bitcoin. This means that at a price of USD 21,000, they are again coming out ahead. Since miners are the backbone of the Bitcoin network, the fact that they are able to make a profit is of course crucial.
But will the good times last? That’s the question on everyone’s mind, including Glassnode:
“The test of the market’s ability to hold onto these gains will be the next big question. “
This start to 2023 gives little certainty about the future movements of Bitcoin and its consorts, but what is certain is that the respite has injected some much-needed optimism into a market.
