The total crypto market cap surpassed $900 billion on Jan. 12 to record a nine-week high.
In conjunction with several tokens recording “monster gains” recently, some have taken this as an indication of the advent of a new bull run.
Crypto market cap shows signs of recovery
Nine weeks ago, the fallout from the FTX collapse spooked the market, leading to massive capital outflows. A bottom was reached when the total market cap found support at $783 billion on Nov. 21, 2022.
The peak-to-trough movement of the fallout equated to a loss of 26% over 16 days.
As participants processed the situation, a period of great uncertainty followed. However, with the start of the new year, it appears sentiment has flipped from uncertainty to tentative optimism.
Leading the charge are several tokens with a strong performance over the past week which has given cause for hope. This includes the gaming project Gala, up 120%, and Layer-1 blockchain Aptos, which grew 83% over the same period.
What’s more, with market leader Bitcoin seemingly breaking its slumber to knock on $19,000 — it seems the risk appetite for cryptocurrencies has returned.
YouTuber Brendan Jordan, aka That Martini Guy, took to Twitter, suggesting recent events could indicate the return of the bull market.
“#BITCOIN NEARLY $19,000
#ALTCOINS BLOWING UP
IS THIS THE START OF THE BULL MARKET!!!”
Similarly, @Crypto Bitlord emphatically declared, “the bear market is officially over.” Welcoming his viewers “to f*cking Narnia,” he confidently stated the entire space “is getting sent.”
Bearish sentiment is still present
Nonetheless, understandably, others in the crypto space are less animated. @SatoshiFlipper voiced caution over the latest market moves, recommending his followers do what they intend to do regardless of the “noise.”
“Is it a bull trap? Is is a bear trap? Don’t make it complicated. Set it + forget it until 30k, 40k, or another target far away & wait for it. Don’t sell yourself short, don’t get distracted by noise.”
@wizardofsoho was decisively more bearish, calling this “the biggest bull trap” he has ever seen. He warned that significant drawdowns will follow.
“Capitulation is coming. Everything is gonna drop 60-70%. You have been warned.”
@tradinglord explained the recent uptick in prices as nothing more than shorts closing, adding it would be “ridiculous” to load up on altcoins at this time.