Digital Assets Struggle at the $2tn Market Cap Threshold

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Created by TradeOr

3rd Party Analysis 17 Aug 2021

Key Takeaways

  • Bitcoin trades lower on Tuesday as the entire market slips under $2tn valuation
  • Crypto market has performed remarkably well in the last four weeks, nearly doubling in value

Digital Assets Struggle

Bitcoin and its crypto peers have recently been busy trying to overtake the $2tn market capitalization level. While the achievement was completed several times over the past few days, the latest on Monday, the entire cryptocurrency market cap has been trading relatively muted and rather jittery, swinging above and under the $2tn market cap milestone.

The leading digital currency on Monday pushed to a session high of $48,000, threatening to eclipse its Saturday peak of $48,113, a price level last seen roughly three months ago. The upside swing yesterday, however, did not produce a clear break over the previous top, and bitcoin’s price slipped in negative territory for the day.

Bitcoin ended Monday’s session lower by 1.4% at $46,000 per coin. At that price level, bitcoin’s market value stood at about $870bn, or a market share of 43.5%.

Investors Unfazed by Setback

On Tuesday, the market mood is little changed as crypto tokens hover relatively flat and to the downside during the session. Bitcoin remains pinned near the $46,000 mark, while ether is trading in the area of $3,100. Dogecoin, which surged more than 40% over the last week, now gravitates below its recent highs around $0.33.

Still, the regaining of the significant $2tn market cap milestone indicated the pace of recovery in the prices of crypto assets remained strong. It took less than a month for the entire crypto market value to almost double.

On July 20, the digital asset space was worth roughly $1.1tn, while the first time the market climbed above the $2tn threshold after that date was on August 14, or a period of 26 trading days.

Despite the short-term setback in the price appreciation of major digital tokens, crypto proponents remain certain the worst of the bearish cycle is over.

On the technical front, bitcoin finished its fourth consecutive week in positive territory. In the process, it managed to climb above the 200-day moving average, which was interpreted as a bullish signal by crypto enthusiasts. The last time bitcoin peaked and closed above the 200-day moving average was on April 30 last year when the flagship token was trading below $9,000 per coin.

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