Crypto Heading For 10 Trillion Dollar Market Cap, According To Analyst
Technical analyst TechDev says signs are pointing to crypto heading for 10 trillion dollar market cap.
Covered:
- 2017 Similarities Point To Crypto Heading For 10 Trillion Dollar Market Cap
- Differences Between Bull Runs
- What Does This Mean For Your Bag(s)?
Crypto Heading For 10 Trillion Dollar Market Cap
Earlier this week, we saw that, based on 2017, Bitcoin has room to run to 200k. Now, it looks like thanks to another similarity to the bull run of 2017, the crypto market might have room to run as a whole.
“It is truly remarkable how perfectly the total crypto market cap has been tracking the 2017 path since July,” says TechDev.
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As the chart above shows, since July 20th the current crypto market is in concert with the highs and lows to 2017. Take for example, the sudden rise of the total crypto market cap after July 20th, followed by a sudden fall in mid-September, and then ending with the most recent rise.
Based on TechDev’s chart, if 2021 keeps following 2017, the total market cap can grow to the 10 trillion range, likely some time in the beginning of 2022.
Differences Between Bull Runs
Though TechDev noted that, “2017’s path needs a slight flattening to align the key anchor points with 2021, which makes sense given the expected diminishing % returns at today’s higher cap.”
Flattening is a term used in technical analysis in instances like this when comparing historical timeframes. The 2017 and 2021 bull runs are similar, but 2017 had a far smaller market cap and was far more volatile.
“If you take the actual fractal from 2017, it has the same shape as 2021, it just moves up more aggressively…,” TechDev added. Essentially, the shape is the same, it’s just not forming as aggressively.
In other words, flattening just normalizes the data so it makes sense in the context of 2021’s larger, less volatile market cap.
What Does This Mean For Your Bag(s)?
Currently, the total market cap is hovering in the range of $2.7 trillion USD. Based on TechDev’s projections that’s means the crypto market can grow about 4x from here.
As of press time, Bitcoin occupies around 1.1 trillion of that market cap. With Bitcoin possibly on track 200k that would give BTC somewhere around a 3.7 trillion dollar market cap. With that much market cap occupied by Bitcoin, what does that mean for the rest of the market?
Based on 2017, that still gives the rest of the crypto plenty of room to run. As TechDev points out in his chart the 10 trillion dollar market cap is likely to occur in 2022. As some of you may recall, January 2018 was dubbed, “Altseason.”
As we can see in the chart from CoinGecko, Bitcoin fell significantly after its December high, with profits going into alts like Ethereum.
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It’s unlikely that Ethereum can reach 50k like this recent Forbes piece alluded to because that would be about 12 times its current price. Last altseason, Ethereum grew about 4 times its November price.
Though, there is plenty of room for Ethereum (Current market cap: $500 billion) to grow based on these projections. Same with the likes of Solana ($76 billion), and Cardano ($65 billion).
The post Crypto Heading For 10 Trillion Dollar Market Cap, According To Analyst appeared first on CryptosRus.
Text source: CryptosRus
