As the first quarter comes to a close, Bitcoin (BTC) and other cryptocurrencies look to be gaining popularity.
Cryptocurrency has surpassed the $2 trillion mark and is proving to be very durable in the face of global turmoil.
Bitcoin has fully recovered from its early-year losses as of Tuesday. In the first 30 days of the year, BTC went from $47,733.40 to $35,070.10, and it hasn’t recovered since.
Bitcoin, the market leader, broke out from the limited $34,000-$44,000 range it had been trading in for the bulk of 2022 on Monday, reaching an all-time high of $47,765.
As a result of a steady rebound from a low near $40,000 on March 21, the cryptocurrency is up 18 percent. The top cryptocurrency was trading at $47,899 on Coingecko on Tuesday, up 16 percent in the last seven days.
Despite the positive market movement, analysts cautioned that declaring the end of Bitcoin’s price volatility is premature.
Market analysts will hold off on making any conclusions about the volatility until the price continues to rise for at least another week.
Its relative stability, at least in comparison to recent performance, contrasts sharply with stock markets, traditional currencies, and even safe-haven gold, all of which have been roiled by Russia’s invasion of Ukraine and Federal Reserve tightening.
Its 30-day volatility is around 4%, according to futures trading website Coinglass, which is more than two-thirds that of June 2021. This year’s high was 4.56 percent on March 16.
This metric shows how far a currency has deviated from its own established norms, and Bitcoin has continued to see huge swings, including a 17 percent increase on March 1.
It is, however, significantly less volatile than it was in 2021, when it could swing by as much as 40% in a single day.
Touching The $2 Trillion Mark
On Friday, the overall value of the cryptocurrency market surpassed $2 trillion, according to analytics firm CoinMarketCap.
To put it in context, the market momentarily reached $3 trillion on Nov. 10 when Bitcoin hit $69,000.
The growth of coins and tokens has aided the sluggish ascent back past $2 trillion – CoinMarketCap now lists 18,511 cryptocurrencies, an increase of around 5,000 since November.
While Bitcoin remains the most expensive cryptocurrency, its market share has steadily declined from 70% of total value in early 2021 to 42% on Tuesday.
Many cryptocurrency investors believed they could predict Bitcoin’s fate before the volatile cryptocurrency deserted them financially.
Around the same time as Bitcoin, Ethereum (ETH) hit a day high of $3,431 per unit.
Bitcoin currently holds 40.3 percent of the $2.26 trillion market, while Ethereum controls 18.1 percent.