Total Crypto Market Capitalization Surpassed $900 billion on January 12 to record a nine-week high.
Along with several tokens posting “monstrous gains” recently, some have taken this as an indication of a new bull run on the way.
Crypto Market Cap Shows Signs of Recovery
Nine weeks ago, the fallout from the FTX collapse spooked the market and triggered massive capital outflows. It bottomed out when total market capitalization found support at $783 billion on November 21, 2022.
The peak-to-valley movement of fallout equaled a 26% loss over 16 days.
As the participants processed the situation, a period of great uncertainty followed. However, with the start of the new year, it appears that sentiment has turned from uncertainty to tentative optimism.
In the lead are several tokens with a strong performance over the past week that has given reason for hope. This includes the Gala gaming project, up 120%, and the Layer-1 Aptos blockchain, which grew 83% over the same period.
Furthermore, with market leader Bitcoin seemingly breaking its dream to make $19,000, it appears that cryptocurrency risk appetite has returned.
YouTuber Brendan Jordan aka that kind of martinitook to Twitter, suggesting that recent events could signal the return of the bull market.
“#BITCOIN ALMOST $19,000
#ALTCOINS EXPLODING
IS THIS THE BEGINNING OF THE BULL MARKET!!!”
Similarly, @CryptoBitlord He stated emphatically, “The bear market is officially over.” Welcoming his viewers “to fucking Narnia,” he confidently asserted that all of space is “shipping.”
Bearish sentiment still present
However, understandably, others in the crypto space are less encouraged. @SatoshiFlipper he expressed caution about the latest market moves, advising his followers to do what they intend to do regardless of the “noise.”
“Is it a bull trap? Is it a bear trap? Don’t make it complicated. Set it + forget it to 30k, 40k or other far target and wait for it. Don’t underestimate yourself, don’t be distracted by noise.”
@wizardofsoho he was decidedly more bearish, calling this “the biggest bull trap” he has ever seen. He warned that significant reductions will follow.
“Capitulation is coming. Everything is going to drop 60-70%. you have been warned.”
@tradinglord he explained the recent price surge as nothing more than shorting, adding that it would be “ludicrous” to load altcoins at this point.
