06.04.202112:11 Forex Analysis & Reviews: XRP renews three-year high, crypto market capitalization reaches $2 trillion: reasons and forecasts

The cryptocurrency market started quite vigorously in the second quarter of 2021 and continues to grow steadily in price. Over the past day, the total cryptocurrency market capitalization has increased by 4% and reached $2 trillion for the first time in history. The main sensation in April is the altcoins, which are gaining positions in the market from bitcoin. The local hero of the past days was the Ripple token, which updated the three-year record of value and continues to push the market up.

If you look at the situation in general, it becomes clear that the cryptocurrency market is growing and developing recently precisely due to altcoins, whose share in the total capitalization is gradually growing. Over the weekend, the main catalyst for market growth was ether, which set a new record ($2,146) and continues to occupy safe positions above the $2,000 mark. After a spurt to a new high, the Ethereum quotes dipped slightly, stopping at $2,093.

At the same time, over the past 24 hours, the value of the asset has increased by 4% and the current growth in trading volume ($241 billion) suggests that soon the indicators of the ETH/USD pair will storm new peaks. This is facilitated by the positive information background and the emerging independent growth dynamics, tied solely to the increased interest of large investors.

However, a few days later, on March 6, it was the XRP token that became the catalyst that allowed the cryptocurrency market to reach a value of $2 trillion. Over the past day, the Ripple coin has rapidly burst into the top 5 crypto assets in terms of total capitalization and updated a three-year record. Over the past 24 hours, the XRP/USD pair has risen 38%, and over the past hour, the asset has shown a crazy 10% growth. It is also worth noting the daily trading volume, which almost doubled and on March 6 is $45 billion.

The reason for the optimism of market participants was the news that Grayscale has documented its intention to transform its bitcoin trust into an exchange-traded fund (ETF), which will significantly increase the interest of institutional investors. Also, the circulation of rumors about XRP listing on the Coinbase platform has added happiness points to major market players. In general, at the current stage, the litigation between Ripple and the SEC has a positive effect on the position of the XRP/USD pair and contributes to its further growth to the level of $1.1.

Another altcoin is aiming for a historic milestone and hoping to rewrite it. Litecoin has grown by 11.5% over the past 24 hours, reaching $225. Judging by the current dynamics, the LTC/USD quotes may well swing at the psychological level of $230. If the asset manages to gain a foothold in this position, then reaching a new maximum value will be a matter of time.

Suddenly, the first cryptocurrency appears again at the end of the review, which is stuck in the region of $57,000-$60,000. The asset is in uncertainty, as can be seen from the growth dynamics: over the past day, bitcoin has risen in price by 2% but has not overcome the difficult milestone of $60,000. The growth of cryptocurrency over the past 7 days was only 1.5%. Even the next investment from MicroStrategy amounting to $15 million could not save the situation.

The main reason for the lack of bitcoin growth was the stabilization of the cryptocurrency market. Over the past few months, altcoins have significantly increased their market presence and become independent from the main crypto asset. In two weeks, the dominance of BTC in the market fell by 4%, which indicates a certain decline in interest specifically in bitcoin. This is because large companies are studying the market in which new profitable crypto projects continue to appear. Even though bitcoin indicators are kept at the level of $58,000, the asset has no visible prerequisites for overcoming the milestone of $60,000 and for setting new historical records.