Crypto market cap breaks new ATH as Bitcoin targets $60K

Spread the love

Crypto markets were enjoying another day in the green – before a sudden flash crash – while the major banks are still counting their losses. Meanwhile global market cap edged up 2.4% overnight, taking crypto to $1.92 trillion, according to data company Nomics. By most counts, that’s a new ATH for crypto market cap- beating out March’s previous record of $1.8 trillion. The value of all crypto assets is now equivalent to 26% of gold’s market capitalization as the golden metal continues to drop in value thanks to a strong US Dollar – more on that below. 

That’s mostly down to Bitcoin’s regains over the last 48 hours. In early European trading, it was hovering just below $60,000, gaining 2.5%. However, at the time of publishing this article, Bitcoin has nosedived dropping $2,000 in minutes.

Ethereum had also been up, but is now sinking fast. One of the day’s biggest performers was Binance Coin, gaining 11.5%, cementing its position as the world’s third-largest cryptocurrency. In the past week, BNB has gained by a third from lows of $230 to $296. 

Binance seems to be benefitting from the news that one of EOS’s biggest DeFi projects upped sticks and moved to the exchange citing “unfulfilled promises”. 

Further down the market caps, Filecoin’s token FIL rose 23% in less than 12 hours, adding to its stellar weekend performance where it added 30% to its token price. The gains seem to be related with renewed interest in the project after Grayscale announced that it was adding the project to its investment trust. 

As the first quarter draws to a close, experts are reflecting on the market’s performance, and they think crypto has had one of its best in nearly a decade according to analytics firm Skew – despite the flash crash that’s currently gripping markets.

Bitcoin is closing in on its best performance in eight years, racking up 80% gains. That’ll be the fourth straight quarter the currency has increased. Historically Bitcoin has represented the majority of crypto’s value, but as BTC’s dominance slips to 50%, it’s a bullish sign that cryptocurrencies in general has had a bumper quarter. 

The USD too is on track for its best quarter in a year. The dollar index surged to its highest in nearly five months against a basket of rival currencies, putting it on track for its best month since 2016. 

Thanks to the accelerating recovery of the US economy, and rising interest rates – meaning money borrowed today will pay back more tomorrow – short sellers of the greenback have been exiting their short positions in droves, according to Bloomberg. 

Gold meanwhile dropped to three-week lows during Asian trading hours, meaning the metal is on track for its worst quarter since 2016. 

While currencies are skyrocketing, the same can’t be said for banks caught up in the Archegos Capital fallout. The latest news, according to JPMorgan is that losses are somewhere close to $10 billion. 

Japanese conglomerate Nomura has now reported it expects to lose $3 billion, while Credit Suisse is facing $4 billion in losses. Experts and investors are trying to figure out the final losses to banks exposed to the Archegos implosion, with the task made harder by the opaque nature of the leveraged trading involved.

Leave a Reply

Your email address will not be published.