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Crypto Market Cap at Critical Make or Break Level

Crypto hodlers will be hoping that  the crypto market cap breaks above the downtrend level after it has failed on six different occasions. However, if their hopes would be brought to fruition, then a massive amount of new cash should be invested in the crypto market by investors. If that is eventually done, what are the hints that the crypto market might eventually make the much needed surge?. With the issue of the downtrend first discovered and brought to the publics eye by a Twitter user, Feras_Y. He noted that the market cap began a sharp decline in May 2018, after the 2017 bull run hit the highest and  he noted that the crypto market has been trading in a downtrend since then.

Crypto failed to break out of downtrend on three essential occasions, Twitter user notes

Noting the three occasions that the crypto market has failed to break out of the downward trend since 2017, the Twitter user pointed out May 2018, June 2019, and February 2020. Feras_Y also pointed out that if we are to critically look at it, it would be about seven occasions that the crypto market has failed to break out. Talking about the crypto market cap, it is the total amount of project that constitutes the crypto market, or we can say the full worth of the crypto space.

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The importance of the crypto market cap is always dismissed or underestimated, particularly when it comes to the issue of trends. The figure is one of the most important in the crypto space because it shows the total amount going in and leaving the crypto market. With this, it is easier to get the health of the crypto market or know when a surge is about to be experienced. Like the last time that the market witnessed a surge, the market needs a new influx of cash.

An influx of cash might push the crypto industry to witness surge, experts say

A new influx of new cash into the market is always a significant catalyst for the market to make predicted surges, and the 2017 market surge saw massive amounts of money come into the market. As a result of the influx of cash, Bitcoin was able to hit the $10,000 mark and continued upwards. As of January 2018, the crypto industry’s total market cap was said to be around $767 billion bit soon decline to move to about $90 billion 11 months later.

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The sharp decline was said to be due to the massive amounts of money that left the crypto industry within that space of time. Presently, the influx of cash has taken the crypto market to the level it was around November 2017, with the crypto market slowing down since March. Experts have said that the gear amongst investors, mainly the institutional that plays a big part in the movement, is still present. With the coronavirus pandemic forcing everyone off and destabilizing most economy and businesses, investors are still willing to hold on to their cash.

Ifaenyi Egede (Nigeria)

Ifeanyi Egede is a new writer on Tokenhell, his articles are cryptocurrency news and platform review based. We recommend following his latest posts as they are always very informative and super interesting.

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