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Crypto Market Enters March With High Hopes After Record-Breaking February

The crypto market has kicked off March with a strong performance, despite a slight slowdown from its recent surge. Bitcoin (BTC), the leading cryptocurrency by market cap, has maintained its position above the $60,000 level, showing resilience and confidence among investors.

Bitcoin reached a new high of $64,000 on Feb. 28, capping off a remarkable month that saw it break multiple records and milestones. The coin has been trading around the $63,000 mark as of March 3, with a market cap of over $1.23 trillion, according to CoinMarketCap.

BTC/USDT 1 day chart | Source: TradingView

The bullish momentum has raised expectations for March, as many analysts and traders anticipate a further rally in the coming weeks. However, the market has also shown signs of consolidation and correction, as it adjusts to the new price levels and prepares for the next move.

On-chain data indicates that the stability is driven by strong investor confidence, as evidenced by over 1 million addresses accumulating over 671,000 BTC within the $60,000 to $63,000 price range. This “accumulation zone” suggests that there is potential future support for the flagship crypto, as well as a reduced selling pressure.

Market Cap Nears All-Time High

The broader crypto market has also witnessed a significant growth in value, as the total market capitalization reached a new milestone of $2 trillion on Feb. 27 — a level not seen since April 2022. The market cap has increased by over 50% since the start of the year, indicating a renewed investor confidence in digital assets.

As of March 3, the market cap stands at an impressive $2.34 trillion, marking a significant increase from the previous year. This growth has pushed the market closer to its all-time high cap of $2.4 trillion recorded in December 2021.

Market Cap (All time) | Source: CoinMarketCap

The momentum suggests that the market is on a trajectory to potentially hit the much-anticipated $3 trillion mark in the medium term. Despite a 20% decrease in trading volume across platforms, the $87 billion figure still signifies a bullish market reminiscent of past highs.

Altcoins Shine

The altcoin sector has notably contributed to the market’s overall performance, with coins such as Solana (SOL) outperforming other top ten tokens. Solana, a blockchain platform that aims to provide fast, scalable, and low-cost solutions, has seen its price soar by over 500% in 1 year.

The diversification in gains among altcoins, including notable performances by meme coins like PEPE, indicates a market ripe with opportunities for investors looking beyond Bitcoin — one of the early indicators of a bull market.

The market’s surge to previous highs has also caused several bull market indicators to begin flashing weeks before the Bitcoin halving, in contrast to previous cycles where they only came into play after the halving. The Bitcoin halving, which is expected to occur in May 2024, is an event that reduces the supply of new bitcoins by 50%, creating a scarcity effect that tends to boost the price.

Meanwhile, Google Trends data shows that searches related to Bitcoin and crypto are steadily climbing and experienced a significant spike over the past week — rising from 29 to 100. This indicates a growing interest and awareness among the general public, as well as a potential influx of new investors and adopters.

The crypto market has entered March with high hopes and optimism, as it continues to break new records and defy expectations. The market is showing no signs of slowing down, as it aims to reach new heights and milestones in the near future.

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