Medha Singh and Lisa Pauline Mattackal

(Reuters) – Crypto seems to be finding the wind at its sails as a bleak quarter winds down. Crypto has overcome the $2 trillion barrier, and it is showing remarkable resilience in the midst of global chaos.

Market leader bitcoin broke the $34,000-$44,000 trading range that it has traded in since March 21st, reaching a high of $47765. It has increased 18% since March 21st, when it was trading at a level just over $40,000

This contrasts with traditional currencies, stock markets and safe-haven precious metals, all of which were shaken by both the Russian invasion in Ukraine and the Federal Reserve tightening.

Lately, a lot of people have stopped being so jumpy.

According to Coinglass, its 30-day volatility hovers around 4%. This is about two-thirds of the level that it reached in June 2021. This year’s highest was 4.56% in March 16

The deviation is the amount of bitcoin that falls below its standards. However, there have been wild swings like the 17% rise on March 1. It’s much more manageable than it was in 2021, when it could trade as high as 40% per day.

Contrary to this, Nasdaq, a tech-heavy stock exchange, has seen 5-6% fluctuations on many days and had been down 20% in the past year. It was also down 20% as of March 14, but it recovered and cut the loss by half.

“The largest conflict we’ve seen in Europe since World War Two has really rocked global markets,” said Pierce Crosby, General Manager at charting platform TradingView in New York.

His comments were echoed by a third party: “What we’ve seen in other major assets are a massive fallout, from both U.S. Equity markets and global markets.” Although Bitcoin’s range has been more or less stable, its relative strength makes it very bullish.

$2 TRILLION CRYPTO

According to CoinMarketCap, the total market value for cryptocurrency rose over $2 trillion Friday. This is a context for the fact that bitcoin’s value reached $69,000 on Nov. 10 and briefly reached $3 trillion.

Slowly, the climb to $2 trillion has been gradual. CoinMarketCap has seen a rapid increase in token and coin counts. Now there are 18,511 cryptocurrency coins on CoinMarketCap.

Bitcoin’s market cap has reached $902billion, although it still needs to claim the $1 trillion that it was able to command in November. It is still the largest crypto but its market share has been slowly declining from nearly 70% in the early 2021s to just 42% today.

Graphic: Bitcoin dominance – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkaejkvx/Pasted%20image%201643630277294.png

WHAT IS NEXT?

Before the volatile cryptocurrency, many crypto investors thought that they would be able to see the future of bitcoin.

Marcus Sotiriou from GlobalBlock, a UK-based analyst on digital assets, stated that bitcoin remains strong for the near term but rising oil prices raise the possibility of a recession in the next year.

The price of oil has risen by 25% in six days. Bitcoin bulls are eager to witness this increase for their continued strength.

However, there are other factors that point to Bitcoin bullishness.

The funding rate, which measures the cost of bitcoin futures trading, has turned slightly positive, after having been negative most of the year. It indicates that investors are ready to make a large investment and pay more to stay long. Although it is still well below the October peak of 0.06%, CryptoQuant’s analytics platform shows that it currently stands at 0.003%.

Coinglass’s shorts-to-longs ratio also increased from 0.95 to 1.1 on March 20, which is the highest in at least four week.

Blockchain data provider Chainalysis said an increasing proportion of bitcoin – nearly 60% of total supply – was being held for longer than 52 weeks, up from 54.72% in the last 25 weeks.

But Ashwath Balakrishnan from Delphi Digital, Bengaluru cautioned it is difficult to find a long-term market direction.

He stated that everyone is cautious. “If bitcoin rejects $46k, and then goes down again, it means that we will be stuck in range bound conditions at least for another month.”