Claims we're in a crypto bull market are premature, but we could be heading there
|Taking a look at the cryptocurrency Market Cap is perhaps the best way to get an overview of how the industry is doing. For many investors, it is the first place they look to before trading, as it can be used as a predictive tool which is relevant to all coins and tokens. In the last couple of weeks, the market cap has been seeing healthy growth, the likes of which have not been witnessed for months prior.
Comparing 2018 to 2019
As of May 30, the crypto market cap is at $280,000,000,000 (two hundred and eighty billion). This is the highest it has been at in all of 2019. The last time that the market cap was this high was on July 31, 2018, when it was $284 billion. Additionally, bear in mind that on July 31, the market was dipping significantly. However, now the opposite is happening. $280 billion might seem like a low number compared to a time when it was once $800 billion (back in January 2018), but the fact that the market is now picking up is huge news for all traders and investors.
The increase in the market
The best way to see the rise in the market is to take a look at its percentage increase. From April 30, 2019, to May 30, the market cap has moved from $171 billion to $280 billion; this is a 63.70% increase in just one month. That type of growth has not been seen before in 2019.
Are we in a bull market?
Such steep increases in the market certainly present a view that we could already be in a bull market, but it is much too early to tell. Bull markets are sustained periods of increase, whereas the increase we are currently witnessing is relatively short term. Perhaps if the markets continue in this fashion into June and July then it could be fair to call it one, but as of now, it is not enough. What could be said, however, is that the crypto industry is experiencing a bull run, as these are more short term. Keep in mind that bull runs (and bull markets for that matter) often have corrections which take place a little after they finish. Additionally, we may be heading into a territory which is fraught with bull traps.
If the industry is heading into a bull market, then it is within the interest of most investors to check up on smaller alt-coins, as they can tell a lot about the future of the industry. Bitcoin and Ethereum are good markers for the health of the market as a whole, but for a bull market, you would need alt-coins to increase in price too. The charts of lesser-known and more niche cryptocurrencies (such as ones using more unique or nuanced technologies) should be followed, as they are a sign of good economic health for the crypto-ecosystem.
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