- Total cryptocurrency market capitalization has increased by more than 50% in the last six months
- Investors are excited as bitcoin price hits year high
- Ethereum, Litecoin and Ripple have followed Bitcoin More
The first half of the trading year is behind us, and one of the most notable developments has been the rise in total crypto market capitalization. After 2022, when many crypto investors got fed up with industry scams and left, the 2023 rally looks like the start of a new bull market.
The performance is even more impressive as the US dollar is trading mixed against its fiat rivals.
The first half of the year saw total market capitalization increase by more than 50% due to renewed investor interest in cryptocurrencies. In the last week alone, the market is up more than 3% and investors are optimistic that Bitcoin, the leading cryptocurrency, remains near yearly highs.
Ethereum, Litecoin and Ripple have followed Bitcoin More
Bitcoin is the main reason investors are optimistic about the cryptocurrency industry despite ongoing scams, fraud, and lawsuits. In the end, all that matters to market watchers is that the bitcoin price remains near yearly highs, even though it is up more than 85% in 2023.
Therefore, the path of least resistance in the second half of the year appears to be a bull run.
bitcoin chart by tradingview
However, not all currencies act like bitcoin. Dogecoin, for example, is flat year-over-year, up about +0.3% in the first six months of 2023. This is a big difference from bitcoin and other cryptocurrencies (like ethereum, litecoin, ripple). . And it reflects the concentration of crypto investors in a few cryptocurrencies.
Moving on to the second half of the year, crypto investors would like to see developments in the traditional forex market. More precisely, what will the Fed do with the funds rate?
If the US dollar loses ground against its rival fiat currencies over the next six months, bitcoin and other major cryptocurrencies are well positioned to add a bit more momentum. Given that the Federal Reserve halted rate hikes in June, one has to accept the possibility that the current interest rate is the last leg of this tightening cycle.
