Veteran trader Michaël van de Poppe has set a target of $2.2 trillion for the total cryptocurrency market capitalization if it can surpass the $1.6 trillion mark, and market analyst EGRAG projects that the market capitalization altcoin market will reach $1 trillion.
Van de Poppe's analysis emerged today in the midst of a consolidation phase that the total crypto market capitalization has faced below the fundamental threshold of $1.6 trillion. Notably, global market capitalization has seen a decline amid the recent widespread market correction.
The bulls continue to protect against further declines, triggering favorable responses to each decline. This battle between both parties has resulted in the consolidation that van de Poppe noted. This consolidation, which began on December 5, ranges between $1.47 trillion and $1.63 trillion.
Global Cryptocurrency Market Targets $2.2 Trillion
The total cryptocurrency market capitalization had risen 17.6% from a low of $1.386 trillion on December 1 to $1.63 trillion on December 9 before facing intense resistance. This resistance has triggered the ongoing consolidation.
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De Poppe emphasized that the hurdle facing the global crypto market capitalization is similar to the resistance that Bitcoin (BTC) observed at $38,000. Notably, the $38,000 resistance impeded Bitcoin's upward growth from Nov. 15 to Dec. 1 before the leading cryptocurrency finally surpassed it.
According to the analyst, if the cryptocurrency market capitalization can also overcome the resistance of $1.6 trillion, its value would rise to the point before Terra collapsed. As The rise of Bitcoin at $44,000 after breaking $38,000, Van de Poppe expects the global market capitalization to rise further to surpass $1.6 trillion.
It set its first goal at $1.85 trillion. The last time the cryptocurrency market recorded a valuation above $1.8 trillion was before the Terra implosion last May. Van de Poppe noted that if the $1.85 trillion target is missed, the $2.2 trillion target would come into play.
Altcoin Market Projected to Reach $1 Trillion
The analyst noted that these target values are "inevitable" and stressed that the market would register a clear upward trend. If this were to happen, the altcoin market would witness a similar rise in valuation. Prominent EGRAG analyst go is raising $1 billion.
The last time the altcoin market recorded a valuation above $1 trillion was also last May, before the Terra collapse. EGRAG drew attention to the sharp drop induced by the fall of the Terra ecosystem. The market capitalization of altcoins fell by 62%, from $1.268 trillion in April 2022 to $485 billion in June 2022.
This drop came after gradual declines from the all-time high of $1.707 trillion in November 2021. The altcoin market is now recovering and is currently at a 19-month high of $735.5 billion. Amid this growth, EGRAG stated that the market would register an uptrend on the same scale as the May 2022 decline.
The analyst noted for the first time that the valuation of altcoins could rise to $1 trillion. If both analysts' projections materialize and the global cryptocurrency reaches $2.2 trillion, with altcoins reaching $1 trillion, this would take Bitcoin's valuation to $1.2 trillion. A market capitalization of $1.2 trillion for btc translates to a price of $61,301 for the token.
However, EGRAG's vision for the altcoin market goes beyond the $1 trillion market. Additionally, it projected a 2.3x increase in valuation, which would take the altcoin market capitalization into the $1.7 trillion territory. The analyst recommended investors to keep an eye on this rally in March 2024.
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Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct extensive research before making any investment decisions. Crypto Basic is not responsible for any financial loss.
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