Breaking above $48,000 for the first time since May, Bitcoin officially crossed the $50,000 resistance line on Monday, 23 August. As the bullish market sentiment continues to pick up the pace, we explore what led to the increasing BTC price, its effect on the crypto market as a whole, and where the market could be headed next.
Bitcoin Market Performance
Since Bitcoin peaked at its all-time high of $64,863.10 on 14 April 2021 the market entered an expected sell-off period. Since first crossing the $30,000 mark in January, the Bitcoin price dipped below this value for the first time again just six months later. With the price at a significantly lower rate, many institutional and retail investors took to the market to increase their portfolios, with on-chain metrics indicating a possible short squeeze.
After reaching lows of $29,807 on 20 July, the bulls took hold of the market once again and the price quite rapidly increased to $42,235 in a matter of 10 days. Consistently, the price continued to reach higher highs, officially trading at $50,084 in the early hours of Monday, 23 August.
These positive price movements coincided with the equity markets stabilization after the pullback experienced earlier in the week, as well as an announcement from Coinbase CEO citing that the company would be investing a further $500 million in the crypto market. Reinstating retail investors’ confidence in the market, these events positively influenced the price movements of Bitcoin and several other cryptocurrencies (more on this below).
Looking at the popular Bitcoin Fear and Greed Index, a tool used to measure the cryptocurrency’s market sentiment, after measuring “Extreme Fear” just a month ago the scale has tipped to the other end. With a rating of 79%, the index is now indicating “Extreme Greed”.
Bitcoin And Crypto Market Caps
Alongside the positive price movements of Bitcoin, the market cap has naturally increased too. During the peak on 14 April, the market cap increased to a whopping $1.179 trillion - driving the value of the entire cryptocurrency market up. A huge feat considering that the cryptocurrency market as a whole only crossed the $1 trillion value for the first time in history in the first week of January 2021. In just three months this would go on to increase by 150%.
The crypto market value crossed the $2 trillion threshold on 10 April for the first time in history and again later that month after experiencing a mild dip. By 12 May the value reached a pinnacle high of $2.51 trillion, yet to be contended with.
While the bear run dropped the market capitalization of both Bitcoin and the market as a whole, the cryptocurrency market cap has been toying with the $2 trillion market value since 14 August, officially rising to $2.156 trillion on 23 August.
At the time of writing Bitcoin contributes to 43.9% of the cryptocurrency market value. The second-largest cryptocurrency, Ethereum, holds an 18.2% share of the market’s value. The rest of the measured market value is made up of over 11,000 altcoins.
Not Just Bitcoin On The Rise
As is often the case, with rising Bitcoin prices several altcoins follow suit. This week as the Bitcoin market grew sizably, several other cryptocurrencies also witnessed value increases. These include Cardano (ADA), Polkadot (DOT) and the most recent addition to the Oobit portfolio offering, Solana (SOL).
At the time of writing, the third-largest cryptocurrency, Cardano (ADA) is up 47.5% this week, and up over 130% this month alone. Polkadot (DOT) on the other hand has also experienced double-digit gains, with market prices indicating a 16% increase this week. Lastly, Solana, the native token to the decentralized computing platform of the same name, officially acquired its position in the top 10 cryptocurrencies by market cap last week. In 7 days the market’s value has increased by almost 20%.
Trade Bitcoin And Other Top Cryptocurrencies On Oobit
With the markets on the rise and retail interest growing, it is easy to assume that the bulls have taken hold of the market again and will continue to instigate movements on this trajectory. If you’re looking to get into the crypto market or grow your portfolio with other top cryptocurrencies, Oobit has made it simpler, easier and faster than ever before.
All you need to do is open a free account on the platform, select which cryptocurrency you would like to purchase, and then choose one of the convenient payment options best suited to your needs (from credit or debit card to Apple Pay). Get started today.