Crypto Market Cap Rises, Total Value Reaches $2.38T

The digital asset market has moved upward again in the latest trading session. Data shows crypto market cap globally rose about 2.7 percent and is now around $2.38 trillion. This rise occurred alongside strength in several major crypto assets, particularly Bitcoin which returned to trading above the $70,000 level.

Aside from Bitcoin, several large crypto assets such as Ethereum, XRP, Solana, and BNB also recorded price increases between 3 to 11 percent. This condition shows increased market activity after weeks of volatility. Nevertheless, sentiment indicators show investors remain fairly cautious.

Key Takeaways

• Crypto market cap rose to around $2.38 trillion after price gains in Bitcoin and major altcoins.
• The decline in global oil prices helped improve sentiment toward risk assets including crypto.
• Large liquidations in the derivatives market accelerated the upward movement of digital asset prices.

Oil Price Drop Boosts Market Sentiment

One factor influencing the rise in crypto market capitalization is the shift in global macroeconomic conditions, especially in the energy market. Crude oil prices reportedly fell sharply in a short period, from around $119 to about $88 per barrel.

The decline occurred after G7 countries together with the International Energy Agency announced plans to release about 400 million barrels of oil from strategic reserves. This step aims to maintain energy market stability amid global geopolitical tensions.

Energy prices have an indirect relationship with financial markets. When oil prices rise, inflationary pressures usually increase, prompting central banks to maintain tighter monetary policy. That condition often limits liquidity in markets and puts pressure on risk assets including crypto.

Conversely, when oil prices fall, inflation concerns can ease. This situation can boost investor confidence in risk assets. In the crypto market context, this change in sentiment often appears through price increases in major assets and a rise in crypto market cap.

Read also : What Is Enso (ENSO)? Ethereum Ecosystem Token Listed on Bittime

Liquidations Accelerate Price Gains

Another factor driving the rise in crypto market cap comes from activity in the derivatives market. Trading data shows more than 81,000 trader positions were liquidated within 24 hours, with a total value of around $327 million.

Liquidations occur when leveraged positions cannot withstand market price changes. When prices move against a trader's position, the system automatically closes the position to prevent larger losses.

In rising markets, short positions are often the largest source of liquidations. When shorts are forcibly closed, traders must buy back the crypto assets they previously sold. This process increases buy-side pressure in the market.

Bitcoin was the asset with the largest liquidations, valued at around $117 million. Ethereum also recorded significant liquidations. This activity reinforced the price momentum in a short period.

Chain liquidations are quite common in the crypto market due to the high use of leverage. When prices break certain technical levels, liquidations can trigger faster price movements compared to normal market conditions.

Read also : Long-Term Price Prediction for Anoma — Potential Layer-1 Token

Bitcoin Nears Key Resistance Level

The rise in crypto market capitalization is also closely related to Bitcoin's movement as the largest asset in the market. Bitcoin is now back above $70,000, which in recent weeks has been a major resistance area.

If the price can hold and break through that level with strong trading volume, market analysts estimate the potential move toward the $74,000 to $79,000 range. Those levels are often used as technical references to gauge the next trend direction.

Meanwhile, circulating Bitcoin supply has surpassed 20 million coins since the network launched more than 17 years ago. The halving system that reduces mining rewards every four years causes Bitcoin supply to increase gradually.

Currently the mining reward stands at 3.125 BTC per block. With this mechanism, the remaining Bitcoin yet to be mined is estimated to take more than a century to be fully in circulation.

Although prices have started to rise, market sentiment indicators still show caution. The Crypto Fear and Greed Index stands at 27, which falls into the fear category. This means some investors are still waiting for trend confirmation before increasing exposure to digital assets.

Read also: What is DeAgentAI (AIA)? An AI Token Now Available on Bittime!

Conclusion

The rise in crypto market cap to the vicinity of $2.38 trillion indicates a recovery of market activity after a period of volatility. Strengthening of Bitcoin above $70,000 and price gains in several major cryptocurrencies were the main factors driving the market capitalization increase.

Besides movements in major asset prices, external factors such as the decline in global oil prices and liquidations in the derivatives market also contributed to driving momentum in the crypto market.

Although the short-term trend looks positive, overall investor sentiment remains relatively cautious. Therefore, monitoring macroeconomic conditions and Bitcoin price movements remains important in reading the future direction of the crypto market.

How to Buy Crypto on Bittime?

Want to trade buy buy Bitcoin and invest in crypto easily? Bittime is ready to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of Rp10.000. After that, you can immediately buy your favorite digital assets!

Check rates BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit Bittime Blog to get a variety of interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto space.

FAQ

What is crypto market cap?

Crypto market cap is the total value of all circulating cryptocurrencies in the market, calculated by price multiplied by supply.

Why can crypto market cap rise?

Crypto market cap rises when the prices of major cryptocurrencies increase or when investor demand for digital assets grows.

How does oil price affect the crypto market?

Oil prices influence inflation and global economic sentiment which can impact investor interest in risk assets.

What is liquidation in crypto trading?

Liquidation is the automatic closing of a leveraged position when losses reach a certain threshold so the trader cannot maintain the position.

Does a rise in crypto market capitalization indicate a bull market?

Not necessarily. A rise in market capitalization can occur in the short term, so investors usually wait for stronger trend confirmation.