Amidst the current financial landscape, analysts have directed attention to the cryptocurrency market, which shows signs of an upturn. Michaël van de Poppe, a respected figure in the trading community, has recently forecasted that the total cryptocurrency market cap could soar to an impressive $2.2 trillion. This projection comes as the market undergoes a consolidation phase, hovering below the crucial $1.6 trillion mark.
Bitcoin’s Role in Market Dynamics
Bitcoin, the flagship cryptocurrency, plays a pivotal role in this anticipated growth. Recently, it overcame major resistance at $38,000, leading to optimistic predictions about its future trajectory. Van de Poppe correlates Bitcoin’s breakthrough with the potential surge in the crypto market cap. He suggests that surpassing the $1.6 trillion resistance could propel the market towards the pre-Terra collapse levels, targeting the first $1.85 trillion and eventually reaching $2.2 trillion.
Altcoins Gearing Up for a Milestone
Concurrently, altcoins are not far behind in this potential financial revolution. EGRAG, another market analyst, envisions the altcoin market cap hitting the $1 trillion mark. This level of growth has not been seen since the downfall of the Terra ecosystem in May.
EGRAG recalls the dramatic drop that followed, plunging from $1.268 trillion in April 2022 to a low of $485 billion two months later. Currently, at a 19-month high of $735.5 billion, the altcoin market is steadily recovering, signalling a possible uptrend similar to the post-May 2022 scenario.
Implications for Bitcoin and Altcoin Valuations
If these predictions hold, the impact on individual cryptocurrencies could be substantial. For Bitcoin, a total market cap of $1.2 trillion would mean a price surge to around $61,301 per token. Meanwhile, altcoins could experience a 2.3x increase in valuation, reaching up to $1.7 trillion. This prospect has led analysts to advise investors to watch for a rally around March 2024.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.