Crypto Market cap, Road to $689 Billion?
Here is the Chart of crypto market capitalization which I'll compare it with the bitcoin's price since the 2017 when the phenomenal bull market occurred. the blue line is the bitcoin's price while the white line is the crypto market capitalization.
It's not right to say the crypto market capitalization as a tool to identify the future movement of the bitcoin's price. It's just a tool to measure the adoption of crypto in the world which in other word. Yes, when there is more adoption, there is likely the price to increase in the future but it won't affect it directly. The bitcoin's price movement is defined purely by supply and demand in the market.
Although there isn't any direct effect given, still I have to cover this important comparation between bitcoin and the market capitalization. First, we can see that since the 2017, the pattern and movement of the bitcoin is similar with the movement of the crypto market capitalization which indicate a positive correlation between this 2 asset. But, at this year's bullish up trend, I see that there is a lack for the crypto market capitalization which hasn't moved to the 2017's high although the bitcoin's price has already created the double top pattern with the 2017.
The main reason for this is that at the similar price level, the market capitalization has a lot of decline in USD value. As the crypto market capitalization doesn't reach the previous high, there left a lot of room for it to go higher which could drive the price to even more higher level. This condition is similar with the 2017's bull run where we can see the lagging on the total crypto market cap too.
However, this is still just an assumption. This condition can be strongly valid if the price is able to break current resistance zone in the future with a lot of volume and a significant peak on the total market capitalization too.
It's not right to say the crypto market capitalization as a tool to identify the future movement of the bitcoin's price. It's just a tool to measure the adoption of crypto in the world which in other word. Yes, when there is more adoption, there is likely the price to increase in the future but it won't affect it directly. The bitcoin's price movement is defined purely by supply and demand in the market.
Although there isn't any direct effect given, still I have to cover this important comparation between bitcoin and the market capitalization. First, we can see that since the 2017, the pattern and movement of the bitcoin is similar with the movement of the crypto market capitalization which indicate a positive correlation between this 2 asset. But, at this year's bullish up trend, I see that there is a lack for the crypto market capitalization which hasn't moved to the 2017's high although the bitcoin's price has already created the double top pattern with the 2017.
The main reason for this is that at the similar price level, the market capitalization has a lot of decline in USD value. As the crypto market capitalization doesn't reach the previous high, there left a lot of room for it to go higher which could drive the price to even more higher level. This condition is similar with the 2017's bull run where we can see the lagging on the total crypto market cap too.
However, this is still just an assumption. This condition can be strongly valid if the price is able to break current resistance zone in the future with a lot of volume and a significant peak on the total market capitalization too.
