<p>Cryptocurrency markets continue to evolve rapidly, presenting investors with dynamic opportunities and challenges. Recent trends have showcased significant growth, particularly among the top cryptocurrencies. Understanding these developments and their implications is crucial for navigating this ever-changing landscape effectively.</p><p>Crypto cap</p><p>In March 2024, the total crypto market capitalization surged by $417 billion, marking a growth of 19.0%. Upon dividing this cap among Bitcoin, Ether, the top 3-10 cryptocurrencies, and others, it becomes evident that the majority of the growth stems from the top 3-10 excluding USDC and USDT, accounting for 39.8%. Consequently, Bitcoin's market cap dominance experiences a 2.0% decline to 53.6%, while the dominance of the top 3-10 excluding USDC and USDT escalates by 17.5% from 9.4% to 11.0%. When smaller market cap cryptocurrencies outperform those with larger market caps, it signals a risk-on move, particularly when the dominance of stablecoins dwindles.</p><p>In the first quarter of the year, the total cryptocurrency market capitalization surged by a staggering $1,012 billion, marking a remarkable growth of 63.1%. This growth was predominantly driven by Bitcoin, which saw a significant increase, accounting for 69.4% of the total growth. Consequently, Bitcoin's market cap dominance experienced a notable rise of 3.9%, reaching 53.6%. Such movements, where cryptocurrencies with larger market caps outperform those with smaller ones, are often interpreted as indicative of a risk-off sentiment in the market.</p><p>Bitcoin</p><p>Price and annual ROI trend</p><p>Since November 9, 2022, Bitcoin has been riding an upward price trend. However, it's essential to grasp that such trends are finite. Currently, the price trend has surged beyond the 99% probability level, indicating a strong momentum in the market.</p><p>Monitoring price momentum entails examining the annual return on investment (ROI), specifically the ROI one would have accrued had they purchased Bitcoin precisely a year ago. Similar to its price trajectory, Bitcoin's annual ROI has been on the rise since November 9, 2022. Nonetheless, like all trends, this too shall pass. By April 30, 2024, there's a 50% probability that Bitcoin's annual ROI will either exceed or fall short of $92.8k, with a 98% likelihood that it will fall between $75.4k and $110.1k. Nevertheless, the actual figures may deviate depending on Bitcoin's fluctuating momentum, much like its current state.</p><p>Ethereum</p><p>Price and ROI trend</p><p>Since November 9, 2022, both Ether and Bitcoin have been on upward price trends, though it's crucial to recognize that such trends are transient. At present, the price trend has surpassed the 99% probability threshold, suggesting robust momentum within the market.</p><p>Assessing price momentum involves analyzing the annual return on investment (ROI) of Ether, considering its performance if purchased precisely a year ago. Similar to its price trajectory, Ether's annual ROI has been climbing since November 9, 2022. Nonetheless, like all trends, this too shall pass. By April 30, 2024, there's a 50% chance that Ether's annual ROI will exceed or fall below $4.5k, with a 98% likelihood that it will be within the range of $3.4k to $5.6k. However, these figures are subject to alteration based on Ethereum's fluctuating momentum, much like its current state.</p><p>Summary</p><p>In March 2024, the cryptocurrency market experienced significant growth, primarily fueled by the top 3-10 cryptocurrencies. This surge led to a decline in Bitcoin's market dominance while increasing that of other top cryptocurrencies. Such shifts indicate a risk-on sentiment, particularly as stablecoin dominance wanes. Both Bitcoin and Ethereum have maintained upward price trends since November 9, 2022, with strong market momentum observed. Analysis suggests continued growth in their annual return on investment.</p> <br/><br/>This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit <a href="https://cryptonjal.substack.com?utm_medium=podcast&utm_campaign=CTA_1">cryptonjal.substack.com</a>
