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The cryptocurrency market is recovering, which is now reflected in its overall market capitalization. As the price of Bitcoin and other altcoins rises, the collective growth has been reflected in the total market value, which has now surpassed $2.7 trillion.
The year has been optimistic for crypto assets as demand for Bitcoin grows with the adoption of Bitcoin Spot ETF. Furthermore, alternative digital assets are also experiencing a bullish rally as price value and trading volume skyrocketed to unprecedented levels.
Over the past few weeks, major cryptocurrencies have also seen notable increases in their market capitalization. As a result, the global crypto market capitalization has regained levels last seen two years ago.
The bullish performance reinforced sentiment among market players who were convinced that the market had fully recovered. It also fuels speculation that 2024 could fuel a long-term rally for the broader crypto market.
Rising demand for ETFs is one of the factors driving market cap value
At the time of reporting, the global cryptocurrency market is worth $2.72 trillion, up 3.88% from its 24-hour high. The newly reached milestone also marks a 140.22% increase in market value over the past year. Global Market Cap Value measures the market value of all cryptocurrencies, and with Bitcoin being the most valued asset, its $1.4 trillion market cap currently represents Bitcoin's dominance of 50.45%.
Rising demand for ETFs is driving the rise in collective market capitalization. Historically, increased demand for ETFs has driven the asset's market capitalization value to new levels, and the current market trend is no exception.
However, market volatility could affect the market value in the long term. Historically, bearish trends have triggered a downtrend and resulted in a decline in the collective market capitalization.
At the time of the report, both altcoins and Bitcoin are making significant gains while offsetting losses from the previous year.
Coming into the week, Bitcoin is trading at $72,214 while the Broader altcoin market recovers. Major altcoins Ether BNB and SOL are recording an increase in daily gains. Sentiments among key players remain largely positive, with some analysts hinting at a prolonged rally over the next week.
