Cryptocurrency Total Market Capitalization Climbs Over $1 Trillion in its First from November

Written by: Arjita Gupta

Edited by: Krutarth

Last Updated: January 14, 2023

Since early November, the cryptocurrency industry for the first time experienced a total market capitalization of over $1 trillion. Bitcoin on 14 January increased to more than $21,000. The hopes are pinned on the inflation peaking out and reaching the bottom. But with a value of $21,999 at a growth rate of 7.5%, Bitcoin saw a fresh leash of freedom in the market because, from 8 November, it has not even crossed $20,000. Now after a couple of months on 14 January, it is seeing an increase from the last 11 days.

On the other hand, a 9.7% rise was seen for the second-largest cryptocurrency, Ether. Significant gains also occurred for other coins such as Dogecoin and Cardano. Earlier Bitcoin was making smaller gains for weeks between $16,000 and $17,000. In the last 5 to 6 days, the short liquidations of cryptocurrency have also gone beyond $100 million. On 14 January, the biggest amount grossed to more than $296 million. The data presented reflected the decline in inflation recently, we can say it for December with an improvement from January.

And that is easily confirmed by the consumer pricing data from the last week. The Federal Reserve, until the price pressure portrays definite indications of moderating will continue on smaller interest rate rises as it transitions in the course. But it does have a dose of benefits, especially for risky assets like Nasdaq 100 stock index, an increase consecutively for 6 days in a row.

According to the head of the digital asset strategy of Fundstrat, Sean Farrell, crypto assets had a nice performance after the soft CPI print, which shows the correlation between macro and crypto not disappear soon. While the price action is positive this week, excluding the forced liquidations by the DCG crypto business, the possibility of cryptocurrency pricing reaching the bottom is certain.