A symbolic threshold for cryptocurrencies. The total capitalization of crypto assets once again exceeds $1 trillion as the market has turned green for the past few weeks. As a direct consequence of this fine weather, miners and investors are no longer selling at a loss overall.
The capitalization of cryptocurrencies jumped at the start of the year
The respite is welcome and reinjects some confidence into a market that has been badly battered in 2022. And as often, it is the price of Bitcoin (BTC) that leads the dance. The queen of cryptocurrencies is showing more than 21,000 dollars this morning. This corresponds to an increase of +22% over the week.
Ether (ETH) gained +18% over the week, Binance’s BNB rose by +9%, and XRP by +11%. Special mention also for SOL de Solana, which is one of the biggest explosions, with +43% over the week and +107% over the last two weeks.
Another consequence of this breakthrough: Bitcoin regained some of its dominance, which was in decline at the end of last year. The largest cryptocurrency now accounts for 39% of total crypto asset capitalization, compared to 18% for ETH and 6% for Tether’s USDT stablecoin.
The miners are back in balance
The consequence of these welcome increases is that miners and investors are generally back in the green. A recent report from analyst firm Glassnode confirms the trend:
“The average BTC holder is now back in an unrealized profit situation.
Same scenario for miners, who on average have to spend $18,795 to mine one bitcoin. This means that at a price of $21,000, they come out on top again. Since miners are the backbone of the Bitcoin network, the fact that they are able to make profits is of course crucial.
But will the good weather last? This is of course the question that everyone asks, including Glassnode:
Testing the market’s ability to hold onto those gains will be the next big question .
This beginning of the year 2023 gives little certainty about the future movements of Bitcoin and its consorts, but what is certain is that the respite has breathed a little optimism into a market that really needed it.
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