Blog

• The total cryptocurrency market capitalization grew by greater than 50% in the final six months
• Investors are optimistic as Bitcoin’s value holds close to the yearly excessive
• Ethereum, Litecoin, and Ripple have adopted Bitcoin greater

The first half of the buying and selling 12 months is behind us, and considered one of the most notable developments is the enhance in the total crypto market capitalization. Following 2022, when many crypto traders received fed up with business scandals and left, the 2023 rally appears like the begin of a brand new bullish market.

The efficiency is much more spectacular, provided that the US greenback is buying and selling with a blended tone in opposition to its fiat rivals. 

Investors’ renewed curiosity in cryptocurrencies led to the total market capitalization rising by greater than 50% in the 12 months’s first half. Only in the final week, the market grew by greater than 3%, and traders are optimistic as a result of Bitcoin, the main cryptocurrency, holds close to the yearly excessive. 

Ethereum, Litecoin, and Ripple have adopted Bitcoin greater

Bitcoin is the predominant purpose why traders are optimistic about the cryptocurrency business regardless of the ongoing scandals, frauds, and lawsuits. In the finish, all that issues for market watchers is that Bitcoin’s value holds near the yearly excessive, regardless of rallying in 2023 by over +85%. 

Therefore, the path of least resistance in the 12 months’s second half appears to be the upside. 

Bitcoin chart by TradingView

Not all currencies carried out like Bitcoin, although. For occasion, Dogecoin is flat on the 12 months, up by about +0.3% in the first six months of 2023. This is a large divergence from what Bitcoin and different cryptocurrencies did (e.g., Ethereum, Litecoin, Ripple), and it displays the crypto traders’ focus in a number of cryptocurrencies. 

Moving ahead in the 12 months’s second half, crypto traders may need to watch the developments in the conventional foreign money market. More exactly, what is going to the Fed do with the funds fee? 

If the US greenback loses floor in opposition to its rival fiat currencies in the subsequent six months, Bitcoin and the different main cryptocurrencies are effectively positioned to rally some extra. As the Fed paused the fee hikes in June, one ought to embrace the risk of the present funds fee being the terminal one for this tightening cycle.