Crypto Total Market Cap Has Increased by 8% in Thirty Days Despite Recent Bankruptcy

Despite sector bankruptcies, the crypto total  market cap has increased by 8% in thirty days.

After a difficult first half of the year marked by a large sell-off, the cryptocurrency market is seeing modest increases, lead by Bitcoin. The gains are accentuated by a rise in the market’s capital inflow.

According to CoinMarketCap data, the total worldwide cryptocurrency market capitalisation was $906 billion on June 17, and $977 billion on July 17, representing a 7.83 percent increase.

Despite big cryptocurrency businesses adjusting their operations, such as filing for bankruptcy, as a result of the broader market meltdown, gains have surfaced.

 

After banning customer withdrawals, crypto-lending platform Celsius is among the notable firms that have filed for bankruptcy protection. Three Arrows Capital, a cryptocurrency hedge fund, and Voyager Digital, a lender, have also filed for bankruptcy.

Even while the market is experiencing short-term gains, the current situation pales in comparison to last year’s advances, which saw Bitcoin reach an all-time high of about $68,000 and the total crypto market capitalization reach over $3 trillion.

Bitcoin Maintains Advances Above $20,000

In the past thirty days, Bitcoin has struggled to sustain advances above the important $20,000 mark, at one point falling below it. As of press time, the leading cryptocurrency has experienced modest gains of approximately 1.5 percent, trading at $21,400.

However, investors are keeping an eye out for a possibly prolonged surge as Bitcoin stabilizes over $20,000 Notably, $30,000 remains a significant psychological threshold. September’s price might potentially reach $30,000 based on the present market conditions.

A optimistic market sentiment is warranted in light of the current high level of inflation. After the U.S. inflation rate hit a new record of 9.1 percent in June, the crypto market lost roughly $15 billion in minutes.

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Market-Bottom Indicators

The question is whether or not the market has hit a bottom and is ready for a new uptick. eToro’s Glen Goodman, a crypto consultant, feels that recent negative headlines, particularly in mainstream media, signal that the market has reached a bottom, despite analysts’ apparent disagreement on the market’s next direction.

A number of mainstream media outlets and analysts have predicted a further decline in the cryptocurrency market in light of the sharp decline. Several crypto-related businesses have had to cease crucial operations, which has fed unfavorable headlines. Investors have suffered large losses.

Since Terra (LUNA) ecosystem disaster, the industry has been plagued by controversies such as these. Even with suspicions of Do Kwon’s involvement in losses, it appeared that the episode had weakened market confidence, especially with regard to the claims.

According to most governments, protecting consumers is a top priority while proposing a variety of different regulatory frameworks for the crypto market.