Crypto Market Cap Remains Stable above $2.5 Trillion

After a week of immense volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and other cryptocurrency assets have witnessed stability over the last few days. The overall market cap of crypto assets stayed above the important level of $2.5 trillion on Thursday.

Digital assets like Ethereum (ETH), Solana (SOL) and Cardano (ADA) held onto most of their weekly gains. In the last seven days, ETH jumped by nearly 5% while SOL climbed by almost 10% and added $6 billion to its market cap during the mentioned period.

In November’s market correction, several crypto whales emerged and purchased leading digital assets. Additionally, institutional investors joined the ‘buy the dip’ movement with large investments. MicroStrategy is one of them as it recently expanded its BTC portfolio with the acquisition of nearly 7,000 coins.

Despite the bullish sentiment from institutional investors, Bitcoin’s exchange inflows have triggered panic among retail traders as they fear selling pressure. “BTC’s exchange inflows have outpaced outflows significantly, as FUD combined with a jump in COVID-19 concerns is causing traders to consider selling funds. On Wednesday, there were 10,242 more BTC moving on to exchanges vs. moving off exchanges,” the crypto firm, Santiment highlighted on Twitter.

Crypto Recovery?

Historically, the crypto market witnessed major corrections after bullish rallies. With a substantial jump of more than 200% in the overall market cap a crypto correction was due. The latest stability above the $2.5 trillion market cap indicates that long-term holders are still bullish about Bitcoin, Ethereum and other crypto-assets.

“With Bitcoin now over 20% below the all-time-high, headlines in traditional media have declared that Bitcoin has entered a bear market. However, it may surprise some readers that this current market correction is actually the least severe in 2021. Some might even say business as usual for a Bitcoin HODLer. Sell-offs in Jan, Feb and April all reached drawdowns as deep as -24.2% from the ATH before reverting,” stated in Glassnode’s recent on-chain analysis report.