• The total crypto market capitalization has seen a 43% gain in 2023, pushing its value to just below $1.13 trillion.
• Bitcoin had the biggest impact on the market this week, with a 12.5% increase in price.
• Other notable performers included Filecoin (FIL), Internet Computer (ICP), and GMX, which saw gains of 59%, 52%, and 34%, respectively.
Crypto Market Reaches New High
The total crypto market capitalization rejected at $1.13 trillion on Feb 16th, representing an impressive 43% gain since the beginning of the year. This puts it close to the previous peak of $3 trillion achieved in November 2021 and within an ascending channel structure that suggests further growth is possible before any major correction occurs.
Bitcoin Leads Rally
The most significant driver of growth this week was Bitcoin (BTC) whose price rose by 12.5%. Investors seem encouraged by US inflation figures released on Feb 14th and retail sales figures released on Feb 15th which showed good news for the economy as a whole despite ongoing bearish regulatory actions and rumors surrounding cryptocurrency investments.
Other cryptos also made impressive gains throughout the week including Filecoin (FIL) which rose by 59%, Internet Computer (ICP) up 52%, and GMX increasing by 34%. These were largely driven by strong demand for non-fungible tokens due to higher transaction fees on Binance US platforms as well as speculation around Merit Peak, a trading firm managed by Changpeng Zhao, but denied any partnerships or services with Binance US according to Reuters reports.
Room for Correction?
Despite these encouraging signs there is still room for some correction without breaking out of the overall bullish formation currently being observed in the crypto markets with only three coins out of the top 80 trading with negative performances this week indicating strong investor confidence overall in digital assets at present time.
It appears that investor appetite towards cryptocurrency remains strong despite bearish rumors circulating recently causing only minor corrections rather than extended periods of losses across multiple coins simultaneously like we have experienced throughout 2020/2021 so far suggesting that this could be a good period for long-term investors hoping to get into crypto markets ahead of what could potentially be another bull run leading up to 2023 when Bitcoin prices are expected to rally up to $25K followed by a retest of total crypto market cap at $1.13T resistance level once again.