The overall cryptocurrency market capitalization has recently seen a resurgence in popularity
Capitalization of all cryptocurrencies has increased by almost 50% in the last six months.
One of the most significant changes since the first half of the year is the rise in overall crypto market capitalisation. After a bear market in 2022, when many investors fled the crypto space due to scandal fatigue, the 2023 upswing seems to represent the beginning of a new bull market.
Given the uneven tone of the US dollar’s trading versus its fiat competitors, the performance is even more noteworthy.
The overall market value of cryptocurrencies grew by more than 50% in the first half of the year, thanks to investors’ increased interest in the sector. Investors are feeling upbeat as Bitcoin, the biggest cryptocurrency, continues to hover around its annual high and the market has risen by over 3% in the past week alone.
Despite the constant scandals, scams, and litigation in the cryptocurrency business, Bitcoin remains the primary reason why investors are bullish about the market. Bitcoin’s price may have risen by over +85% in 2023, but that doesn’t matter to market analysts as long as it remains relatively near its annual high.
So, it appears like going up is the easiest option for the second half of the year. However, not all currencies fared as well as Bitcoin. Dogecoin, for example, is up 0.3% so far in 2023 and is flat year-over-year. This is a dramatic departure from what Bitcoin and other cryptocurrencies (including Ethereum, Litecoin, and Ripple) experienced, and it highlights the fact that crypto investors are putting their money into a small number of coins.
In the next six months, Bitcoin and the other top cryptocurrencies are set up for further gains if the US dollar falls versus its competitor fiat currencies. In light of the Federal Reserve’s decision to halt rate rises in June, investors should be open to the idea that the current funds rate represents the end of this tightening cycle.
