Crypto Markets Reach 6-Month Milestone Following Monster Rally

Cryptocurrencies achieved an important milestone Wednesday, as the total market cap crossed $300 billion for the first time since August.
bitcoin, btc price
The cryptocurrency market is the fastest-growing asset class of 2020. Can the trend continue? | Image: REUTERS/Dado Ruvic/Illustration
  • Bitcoin’s price approaches $10,500 for the first time since early September.
  • Twenty-nine of the 30 top cryptocurrencies reported gains Wednesday.
  • The combined market cap of all coins crosses $300 billion for the first time in six months.

Bitcoin and its altcoin peers extended their rally on Wednesday, pushing their collective market cap north of $300 billion for the first time since August.

Bitcoin Rallies

The bitcoin price rallied in the overnight session, eventually topping out at $10,487.46 on Gemini – the highest since September. The original cryptocurrency was last seen hovering just below $10,400, having gained nearly 5% over the 24-hour trading cycle.

Bitcoin price, btc
Bitcoin has rallied 47% since the start of 2020. | Chart: TradingView

At current values, bitcoin has a total market capitalization of $188.9 billion, accounting for 62.4% of the crypto asset class.

Bitcoin’s return to $10,000 seemed imminent last week after the largest cryptocurrency achieved an important technical milestone. On Jan. 31, the 50-day exponential moving average (EMA) crossed the 200-day EMA, setting the stage for a continuation of the bullish trend. Since the so-called “golden cross” was attained, bitcoin has rallied more than $2,000.

Altcoins Surge

Beyond the number one cryptocurrency, altcoins and tokens saw significant upside on Wednesday.

Ethereum (ETH) spiked 13.5% to $254.35, its highest since July. XRP rose 8.7% to $0.2969. Bitcoin cash (BCH), EOS, Litecoin (LTC) and Cardano (ADA) rose between 4% and 11%.

No other cryptocurrency exemplified ‘alt season’ like Tezos (XTZ). The tokenization platform spiked more than 20% on Wednesday en route to a new all-time high.

Combined, crypto assets reached a total market capitalization of $302.7 billion, their highest since August. The asset class has grown by $110 billion this year alone, having completely reversed the cyclical bear market that began in the third quarter of 2019.

Crypto market cap
Altcoins have accompanied bitcoin during the massive uptrend. Combined, the crypto market cap crossed $300 billion on Wednesday. | Chart: CoinMarketCap

Some analysts have attributed the parabolic rally to ‘alt season,’ as more investors cycle back into beaten-down alternative cryptos. Bitcoin’s emerging status as a safe haven could also be a driving factor given its strong correlation with gold in recent months.

Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

Josiah Wilmoth edited this article for CCN.com. If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.

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Sam Bourgi

Sam Bourgi

Financial Editor of CCN.com, Sam Bourgi has spent the past decade focused on economics, markets, and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE, Yahoo Finance, and Forbes. Sam is based in Ontario, Canada and can be contacted at sam.bourgi@ccn.com or at LinkedIn. Visit his Muck Rack profile here. Sam Bourgi is a Trusted Journalist.

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