$377 Billion. That is the current crypto market cap. That is a lot better than we have experienced over the last month. In fact it is almost 3 times (!) higher than the bottom we set on April fools day.
So we ask ourselves, have we reversed the trend now?
Based on many technical analysts, we need to decisively break 9k USD in BTC in order to be able to speak of a trend reversal. that is another 6% at the time of writing this post.
Doesn't sound like that much, does it, especially when considering the huge moves BTC has made lately?
The sentiment in the market though is that current price moves (both the push downward in the last months but also the move up in the last 2 weeks) is driven by whales dominating the market. Retail interest is supposedly not entering the market as of yet. So the question now is, how much buying power do these whales have left? The higher the price the more difficult it becomes to keep setting prices higher.
Alts season
A big factor in the increase of the current market cap though is the rise of alts.
Many people have dubbed it already alt season again. During alts seasons, alts rise hard while BTC moves sideways or slightly downwards/upwards. So even if BTC is not breaking the $9k barrier this week or the next, as long as BTC doesn't plummet, the market cap may increase substantially.
The rise of alts versus BTC can even better be demonstrated by the graph below.
Currently BTC dominance is at 38% which, compared to the low in January of 32%, is decent, but compared to a year ago when it was over 80% shows that BTC maximilists have been losing ground in the crypto space.
So what do these graphs tell us?
Well for starters yes we should be mindful of the 9k resistance level in BTC. However, the crypto market is booming due to alts gaining popularity again. And while this share of the market is getting bigger and bigger, it may help the the market cap go to decent levels again, even without BTC reaching all-time highs.
Conclusion
Look for reports of retail investors coming back in to see a proper boom of the entire market again. As long as BTC doesn't dump and no new FUD is pumped into the market, this scenario is getting more likely by the day. If we go below $7800 for BTCagain though, alts will start dumping a lot faster, as it usually does with big price moves of BTC.
Stay Tuned!