Cryptocurrencies have reached an important milestone, surpassing $2.5 trillion in market capitalization, indicating renewed investor interest in risky assets.
The increase in cryptocurrency market capitalization is primarily due to inflows into spot Bitcoin exchange-traded funds (ETFs), which are driving up the price of BTC, according to Coincu.
Last week, assets under management at IBIT BlackRock reached $10 billion, FBTC Fidelity reached $6.5 billion, and ARKB ARK reached $2.1 billion.
Meanwhile, there is potential for more Bitcoin ETF providers, such as Bank of America Merrill and Wells Fargo, to add to the market cap in the near future.
During Monday's Asian session, the price of BTC briefly surpassed $64,000, just 6% below the all-time high set in November 2021. The price of Bitcoin has increased by more than 24% over the past seven days. In addition, Ethereum also saw a surge, recording a 3% increase in price to $3,470 and posting a 12.5% increase for the week.
According to Coinglass, the jump in Bitcoin price comes amid the fact that daily open interest in Bitcoin futures on centralized exchanges hit a record high of $27.53 billion on the morning of March 4.
Notably, the rise in cryptocurrency market capitalization has helped the meme coin sector surpass the market capitalization of non-fungible tokens (NFTs).
Ryan Selkis, CEO of Messari, wrote on his X (Twitter) page that the meme coin market has reached $40 billion, surpassing many other emerging industries.
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The high level of activity in the cryptocurrency market underscores the growing acceptance and adoption of digital assets by both retail and institutional investors.
Market capitalization is calculated by multiplying the current price by the volume of cryptocurrency in circulation.
At the time of writing, the price of BTC has settled at $63,718, showing an increase of 3.39% in the last 24 hours.
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