The recent upward trend in the crypto market in 2023 has pushed up the valuations of Bitcoin & Co significantly. The total value of all listed properties is again approaching the trillion euro sound barrier. The last time this valuable crypto market was in November 2022 before the collapse of the FTX crypto exchange.
According to these numbers, the industry has thus overcome the fall of the crypto exchange and the great loss of confidence among investors. Apparently, there is a lot of interest in buying Bitcoin or investing in other cryptocurrencies.
Crypto market recovers more than 25 percent in 2 weeks
It is amazing that this recovery happened in just 2 months. Fear and panic seem to have left the market, at least for the time being. The cryptocurrencies benefit from the overall development of the financial markets. Whether on American or European stock exchanges such as Nasdaq, S&P 500 or the Dax, investors everywhere are celebrating strong price gains these days and many seem to have forgotten about the terrible year 2022.
Overall, the crypto market has already gained more than 25 percent in market capitalization in the first two weeks of the year. From less than $750 billion, it went back up to $965 billion. With that, the market is approaching the psychologically significant $1 trillion mark. If the crypto market were a company, it would now be more valuable than Amazon and would be on par with Alphabet (Google’s parent company).
Bitcoin now more valuable than Mastercard and Visa
Bitcoin has a market valuation of about 400 billion dollars as the single most important digital currency. This corresponds to more than 40 percent of the total market. Bitcoin is currently more valuable than carmaker Tesla, credit card providers Mastercard and Visa or oil giant Exxon Mobil.
However, Bitcoin’s market share in the entire crypto market was already much higher. At the end of 2020, the proportion was more than 70 percent. During the big bull market in 2021, however, the altcoins were able to significantly increase their piece of the pie.
Ethereum is worth more than McDonald’s
And surprisingly, the bear market of 2022 didn’t hurt the strength of altcoins as a whole. This clearly distinguishes the trend from the last bull market in 2017/2018, when many cryptocurrencies fell completely after the historical record runs. While 2022 saw massive corrections of 70 percent, 80 percent and even more, many projects fared well compared to 2018 levels.
For example, Ethereum, the most valuable altcoin, is valued at nearly $200 billion. If you look at Ethereum as a company,Ethereum would be more valuable than large corporations such as the fast food giant McDonald’s, the entertainment giant Walt Disney or the oil company Shell.
Binance Coin would not be among the top 100 companies
However, there is already a significant gap behind the big two Bitcoin and Ethereum. Excluding the stablecoins like USDT (Tether), Binance Coin would be number 3 with a market cap of less than $50 billion. This would not be nearly enough for a placement among the 100 most valuable companies in the world. In order to be included in this “club”, a market valuation well over 100 billion dollars is required.
Despite the good development in recent weeks, the crypto market is far from returning to the status it was in 2021. At that time, the market value of all cryptocurrencies exploded to more than 3 trillion dollars. Currently, one third of this huge sum has not been reached.
Historical comparison: Bitcoin was more valuable than Google in 2021
Bitcoin was sometimes worth more than $1 trillion in 2021 alone, more than the entire crypto market today. A historical picture of market caps from November 7, 2021, a time when many cryptocurrencies were approaching their all-time highs, shows a market cap of about $1.2 trillion for Bitcoin alone.
This made BTC more valuable than Alphabet (Google) today and it would be among the top 3 companies in the world behind Apple and Microsoft. At that time, Ethereum alone was worth about 550 billion dollars and it would still be the 5th most valuable company in the world after Amazon.
Bitcoin market share is increasing again
Is there a realistic chance that the crypto market will reach these areas again? Or maybe the current mark of around $1 trillion is the highest expected for the foreseeable future?
Much will depend on how the main currency Bitcoin develops. Because the whole market is still based on BTC. If Bitcoin rises, other cryptocurrency prices tend to rise as well. The Altcoins then often increase even more compared directly to Bitcoin. However, the opposite also applies: If the Bitcoin price corrects, the Altcoins also fall – and almost always much more violently than BTC.
Recently, Bitcoin has been able to regain some market share compared to Altcoins. The BTC dominance chart shows that Bitcoin now accounts for about 43 percent of the entire crypto market. However, in September 2022, it was still less than 38 percent, which is the lowest level since the end of the bull market in January 2018.
Crypto market could explode to $2.5 trillion
The Total Crypto Market Cap Chart shows a very interesting pattern that may be relevant to the further development of market capitalization on the crypto market. The market has experienced a massive slide from the all-time highs of November 2021. The chart pattern of a falling wedge has formed. The market was repeatedly rejected by the falling resistance line, but was able to hold the important support line at the same time.
In December, the market successfully broke out of this bullish chart pattern according to technical analysis. This could once again bring the market to a total valuation of more than $2.5 trillion if the technical price target is met.
However, resistance has not yet been confirmed as new support. If this event occurs, the price may drop several times before continuing the uptrend.
Buy fight tokens out in the presale
Some altcoins could offer strong potential for high returns in 2023. This includes new projects like Fightout. This is dedicated to the mega topic of the Metaverse and wants to establish wellness services in virtual space. The new platform’s native token pre-sale is currently underway. When you buy FGHT, you get a 50 percent bonus.
Cryptocurrencies with potential in 2023
An offer that matches your criteria…
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.