- The crypto market has reclaimed the $2 trillion mark
- BTC and ETH still control more than 60% of the market
The crypto market has fallen significantly over the past week, with the total market capitalization falling below $2 trillion. This decline was accompanied by a rise in long liquidation volumes, as the prices of the major cryptocurrencies fell.
However, the market is now showing signs of a turnaround. And the outlook for the upcoming crypto week appears positive, compared to the week before.
Crypto week ahead: market cap
An analysis of the crypto market capitalization on CoinMarketCap it turned out that the market has experienced periods of depreciation in recent weeks. The most significant drop occurred last week, dropping the total market capitalization to about $1.9 trillion.
The price declines of major assets such as Bitcoin and Ethereum were mainly responsible for this decline.
Source: CoinMarketCap
However, over the past three days, the price has recovered and reached the $2 trillion threshold again. Along with this recovery, major cryptocurrencies have shown a positive uptrend, indicating that the market could post further gains in the coming week.
If this trend continues, it could start a more positive phase for the crypto market.
Crypto week ahead: market liquidations
An analysis of the total liquidation chart on Mint glass revealed that the market saw a rise in liquidations over the past week, with long liquidation volumes dominating. This confirmed the observed decline in market capitalization. The data also highlighted that long liquidations totaled more than $520 million, while short liquidations totaled approximately $223 million.
However, as the market began to recover, the volume of long liquidations decreased and the number of short liquidations increased. This shift signals that the market may be regaining upward momentum and that short positions are increasingly at risk.
Source: Coinglass
If this trend continues, the coming week will be challenging for short positions. Especially since rising asset prices could lead to more short liquidations. With the market showing signs of recovery, traders with short positions may face increasing pressure as bullish sentiment returns.
Bitcoin and Ethereum are leading the market dominance
An analysis of the past seven days showed that Bitcoin (BTC) has lost more than 3% of its value, while Ethereum (ETH) recorded a steeper decline of more than 6%. Despite these declines, both assets continue to dominate the cryptocurrency market.
Bitcoin’s market capitalization at the time of writing was approximately $1.13 trillion, representing 56.5% of the total crypto market. Ethereum’s market capitalization was $282.9 billion, with a dominance of 14.6%.
These two assets remain the most influential in the cryptocurrency space, and their price movements will have a significant impact on the overall market trajectory of the coming crypto week.