Bitcoin Market Cap Hits Record High After $18,450 Pump

By Martin Young
November 18, 2020 Updated November 18, 2020
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Bitcoin’s monumental move to break $18,450 today has also lifted its market capitalization to new highs, which in turn has lifted that of the entire market back to February 2018 levels.

It has been a tumultuous Asian trading session this morning with Bitcoin prices surging to top out over $18,450 followed by a massive wick back down to the 50 hour moving average at $17,100. This is indicative of a lot of leveraged positions getting liquidated. Since then, BTC has recovered back to the $17,800 level where it currently trades.

The big move has added a further 10% to BTC prices over 24 hours as $1,700 gets added to prices in less than a day. Over the past week, the king of crypto has gained 20% while gains on the month are an even more impressive 60%.

From current prices, there is very little in terms of resistance between here and its previous peak of $20k which came in December 2017.

Its All About Bitcoin Market Cap

The big pump has lifted Bitcoin’s market capitalization to new highs according to data from Glassnode;

Industry experts have commented that market cap is now a better indicator of overall market sentiment and health than just looking at price alone. In his latest newsletter, co-founder at Morgan Creek Digital Anthony Pompliano explained;

“This is important because I believe the market cap metric is much more important than the price of a single bitcoin. The supply slowly increases, so total market cap better represents where the market is over time.”

BTC market cap peaked at around $340 billion according to Coinmarketcap, which is $5 billion higher than it was during the December 17, 2017 peak of $20K.

Analyst Nic Carter from Castle Island Ventures wrote a piece on a lot of other Bitcoin metrics that are also at an all-time high. These included wallet addresses with at least $10 in them, open CME futures interest, realized capitalization, BTC options open interest, BTC priced in various currencies other than USD, and Bitcoin held by Grayscale. He concluded;

“ATH in economic significance comes before unit price ATH”

Total Market Cap Over $500 Billion

Bitcoin’s massive move has lifted the total crypto asset market capitalization above $500 billion for the first time since February 2018.

Back then, prices had spiked again on their way down in a rapid retreat that lasted for around two years before levels could regain the half trillion milestone once again.

Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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