- The crypto market capitalization surged by 64.5% in the first quarter of 2024, reaching a peak of $2.9 trillion in March.
- This significant growth represents a major increase in capitalization and suggests a strong market performance during this period
The crypto market experienced significant growth in the first quarter of 2024, as reported by CoinGecko. The sector’s market capitalization saw an impressive surge of 64.5%, peaking at $2.9 trillion in March.
The report highlighted that the market cap increased by $1.1 trillion during the quarter, nearly doubling the increase seen in the fourth quarter of 2023, which was $0.61 trillion. This growth coincided with a rise in capital inflows to spot Bitcoin ETFs, which were approved on January 10, 2024.
The market’s upward trajectory began in late January and lasted through mid-March when the capitalization rate reached its intermediate maximum. CoinGecko’s data showed that the assets under management (AUM) for U.S. spot Bitcoin ETFs reached $55.1 billion during the quarter.
Grayscale Bitcoin Trust ETF (GBTC) maintained its dominant position in the market, but iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) have closed the gap significantly.
Bitcoin itself experienced a remarkable quarter, growing by 68.8% and achieving its all-time high. This substantial growth in the cryptocurrency’s value contributed to the overall expansion of the market.
Despite a slowdown in capital inflows into spot Bitcoin ETFs towards the end of March, positive trends in the funds persisted. Since January, Bitcoin exchange-traded funds have attracted over $12 billion in investments.
This surge in the crypto market cap suggests an optimistic outlook for the digital asset industry in 2024. Investors and market participants are closely monitoring these trends as the industry continues to evolve.
Positive Outlook for Crypto Market
The first quarter of 2024 has been a period of significant growth for the cryptocurrency market, with a 64.5% increase in market capitalization. This surge, driven by strong performance from Bitcoin and the influx of capital into spot Bitcoin ETFs, suggests an optimistic trajectory for the industry in the coming months. As the market continues to evolve and attract new investments, the crypto sector appears poised for further expansion.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
