Tuesday saw a significant drop in major cryptocurrencies due to profit-taking, which affected Solana, Ethereum (ETH), and Bitcoin (BTC). Over the previous day, the value of the worldwide cryptocurrency market dropped by 1.8% to hover at $2.2 trillion.

At 12:45 p.m. Indian Standard Time, Bitcoin had decreased 1.4% to $62,862, while Ethereum had dropped 2% to $2,686.

“Bitcoin stabilized at $62,000 following some investors’ profit booking,” Mudrex CEO Edul Patel stated. At the moment, $61,400 is Bitcoin’s support level and $63,400 is its resistance level. Ethereum, on the other hand, is currently trading at about $2,600 and has not developed enough momentum to make big moves, indicating that it might be moving sideways for a few more days,” he continued.

“Bitcoin has gone below its $63,500 support level and has to hold its 200-day EMA at $62,269 to avoid additional drops,” said Giottus Crypto Platform CEO BuyVikram Subburaj.

A number of other well-known cryptocurrencies also experienced drops: Dogecoin (-2.7%), Tron (-2.2%), BNB (-1.8%), Solana (-0.9%), XRP (-0.9%), Chainlink (-3.9%), Polkadot (-2.6%), and Toncoin (-4.11%).

According to CoinMarketCap, the total amount of stablecoins is currently $61.7 billion, or 92.98% of the 24-hour volume of the whole cryptocurrency market.

The world’s largest cryptocurrency, Bitcoin, saw its market capitalization decline to $1.242 trillion during the course of the last day, according to CoinMarketCap, putting its dominance at 56.26%. The 24-hour trading volume of Bitcoin reached $28.15 billion, a 43.6% rise.

“Both the 200-day EMA and the Fibonacci retracement levels have been broken by Bitcoin. If the price stays over $62,280 and rises to $65,596—a potential rally above $70,079—it might happen. On the other hand, a decline below $58,783 might put the present bullish trend in jeopardy, according to Unocoin CEO and co-founder Sathvik Vishwanath.

“Bitcoin has slipped below $63,000 after earlier peaking above $65,000,” the CoinDCX Research Team reported. Although the immediate future seems bleak, Bitcoin and the market as a whole continue to trend positively over the long run.”

On Monday, most cryptocurrencies maintained their advances. The market value of all cryptocurrencies as of today was $1.16 trillion, with a turnover of $31.66 billion over the previous day.

Bitcoin
Bitcoin, the biggest and most used virtual money in the world, increased 0.9 percent to $27,854.1. It was valued at $539.3 billion on the market. The value of the transaction was $13.9 billion.

As the token is anticipated to move into a consolidation period, the price rally in bitcoins has piqued the interest of many investors. Despite the market’s current liquidity crunch, the general outlook for the cryptocurrency sector is bullish.
American institutional buyers have made a significant contribution to the recent rise in the price of bitcoin. Experts are also praising the success of cryptocurrency as a requirement for global elections where electors would select cryptocurrency-friendly leaders.

Ethereum
The market capitalization of Ether, the second-largest virtual money, increased by 0.8 percent to $1,765 at the most recent count. In the previous day, Ethereum trades were worth almost $7 billion.

Dogecoin,
A virtual currency founded on memes, decreased 0.5 percent to $0.1. It was valued at $9.8 billion on the market. There were almost $225.3 million worth of transactions.

Solana
Solana increased 0.2 percent to $20.7 and now has a $8 billion market value. In the previous 24 hours, Solana saw $223.2 million in trading.

Shiba Inu
Shiba Inu gained 0.4 percent and now has a market value of nearly $6.2 billion. In the past 24 hours, there were $126.3 million worth of transactions.

Polygon
Polygon increased 0.9 percent and now has a $10 billion market value. In the previous 24 hours, there were $272.5 million in transactions.

As Bitcoin and other tokens extended their gains for the third consecutive day, optimistic sentiments persisted in the cryptocurrency market. The gains were however limited, and some coins experienced some profit booking during the early Asian trading hours.

After the worldwide fallout caused by the American banking sector, traders believe that the worst is behind the market for digital tokens. Additionally, the US inflation data came in as predicted, suggesting that the US Fed will likely abandon its aggressive rate increase plans.

Before giving up some of its gains, Bitcoin momentarily reached a market high of $26,000. The biggest cryptocurrency coin was last seen at a price below $25,000. A few altcoins increased by up to 35% compared to blue-chip currencies.

The biggest cryptocurrency in the world, Bitcoin, has increased by more than 12% in the past week. The UK government’s bailout of Silicon Valley Bank has sparked optimism among investors, which may have increased purchasing activity.

“According to the most recent data, US consumer inflation has decreased but is still high, which may encourage the Fed to maintain its hawkish attitude. If macroeconomic conditions stay favourable, Bitcoin may shortly test the $30,000 level.

Every other well-known cryptocurrency token saw gains on Wednesday, with the exception of stablecoins tied to the US dollar and Tron. Avalanche increased by about 6%, while Bitcoin increased by 5%. Each of Litecoin, Solana, and Polkadot saw a 4% increase.

The market capitalization of all cryptocurrencies was moving higher at $1.10 trillion, up more than 2% over the previous day. However, the overall trading amount increased by over 13% and approached $102,40 billion.

By surging over $26,000, Bitcoin hit its highest point in nine months. This was brought on by some encouraging inflation statistics and the banking industry’s ongoing recovery from a situation that was almost catastrophic.

“Bitcoin is still up 81% from its lowest cycle, despite eventually giving up some of its gains. Ethereum has also been on the rise, breaking through a significant resistance mark of $1,700. An overall bullish sentiment is indicated by the market’s recent favourable events,”

On early Saturday morning, Bitcoin (BTC) and Ethereum (ETH), two of the most valuable crypto coins, managed to stay above the $23,000 and $1,600 marks, respectively. Other popular altcoins, such as Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC), landed in the greens, as overall prices rose marginally. The Shiba Inu (SHIB) token was the biggest gainer, rising 14.76 percent in a 24-hour period. EthereumPoW (ETHW), on the other hand, was the biggest loser.

At the time of writing, the global crypto market cap was $1.08 trillion, up 0.25 percent in 24 hours.

Bitcoin price today
According to CoinMarketCap, the price of bitcoin was $23,355.67 after a 0.83 percent loss in the previous 24 hours. BTC was trading at Rs 19.48 lakhs on the Indian exchange WazirX.

Ethereum price today
At the time of writing, the price of ETH was $1,654.20, representing a 0.64 percent gain in the previous 24 hours. According to WazirX, the price of Ethereum in India is Rs 1.37 lakhs.

Dogecoin price today
According to CoinMarketCap data, DOGE gained 2.98 percent in a 24-hour period and is now trading at $0.09415. According to WazirX, the Dogecoin price in India is Rs 7.83.

Litecoin price today
Litecoin experienced a 0.00 percent 24-hour change. It was trading at $98.99 at the time of writing. In India, the price of LTC was Rs 8,259.74.

Ripple price today
The price of XRP was $0.4086 after a 0.63 percent loss in 24 hours. According to WazirX, the current price of Ripple is Rs 33.67.

Solana price today
Solana was trading at $24.48, up 0.55 percent in 24 hours. According to WazirX, the SOL price in India was Rs 2,093.99.

Market capitalization as a term has also entered cryptocurrency investing conversations over time. Its definition and application in cryptocurrencies are not exactly the same as in the traditional stock market. Cryptocurrency market cap is broadly defined as a metric that measures the total value of a particular cryptocurrency in the current market.

The market cap of a cryptocurrency is determined by dividing the total coins that have ever been mined by the price of one coin at a particular time. Market capitalization can be used as a valid measure of how stable an asset is likely to be.

This feature provides a brief introduction to cryptocurrency market capitalization, why it’s important to understand, and what it means for investors.

What is cryptocurrency market cap and how does it work?

Since the inception of Bitcoin, the first cryptocurrency, more and more cryptocurrency projects have entered the scene, each promising a different benefit or use to investors. Some altcoins boast unmatched transaction speeds, while others claim to offer the lowest fees.

Other coins, such as the privacy-focused altcoin Monero (XMR), offer airtight security and complete privacy. XMR transactions made through a specially encrypted Monero wallet are said to be completely anonymous and untraceable, making Monero an ideal coin for users with extreme cybersecurity concerns.

There are currently thousands of active cryptocurrency projects available for traders to invest in. Naturally, each of these coins will be valued differently in the market, and this is what cryptocurrency market capitalization is meant to measure.

The market capitalization of a particular coin is meant to give investors an idea of ​​how big the project currently is and how well it is doing.

The market capitalization of a cryptocurrency is calculated by multiplying the current market price of the coin by the total circulating supply. For example, if a certain coin is trading at $5 per unit and there are approximately 10,000,000 coins in circulation, its market cap would be $50,000,000.

Many cryptocurrency experts consider market capitalization to be the most important factor in determining a cryptocurrency’s viability as an asset. There are now a number of websites and online indexes that calculate and track market capitalization for various cryptocurrencies, as well as other important financial metrics. These sites allow crypto investors to track the dominance and popularity of their chosen coins.

Why does market capitalization matter?

The market capitalization of a crypto project can provide valuable insight into the relevance of that project, especially for investors looking to gauge the popularity of a particular coin over the long term.

For example, most cryptocurrency experts will agree that coins with large capitalizations above $10 billion are relatively safe investments. Investing primarily in such coins is usually considered a conservative strategy, as these cryptocurrencies are likely to be less unpredictable investments than other coins.

However, it is worth noting that even the most stable cryptocurrencies will still be more volatile in terms of their value than traditional investment products such as stocks or bonds.

Mid-cap cryptocurrencies are those with a market capitalization between $1 billion and $10 billion. Unlike large-cap cryptocurrencies, these cryptocurrencies are typically much more volatile, but may have more upside potential. Meanwhile, small-cap cryptocurrencies are those with a market capitalization of less than $1 billion. They are often subject to extreme price volatility, with their value often rising or falling significantly within hours.

Thus, small-cap cryptocurrencies are considered the riskiest investments one can make in cryptocurrencies, even though their growth potential is expected to be good in the short term.

How can market capitalization affect your investment strategy?

One viable way investors can apply their knowledge of market capitalization is by following a market capitalization weighted investment strategy. Under this strategy, the amounts that traders invest in their chosen cryptocurrencies are proportional to the current market capitalization of those coins.

To illustrate, this means that an investor looking to put $100 into total crypto investments should allocate the largest portion of that amount to coins with the largest market capitalization and smaller portions to other less popular cryptocurrencies.

However, it is important for novice crypto investors to keep in mind that the market is prone to dramatic price swings, even for large-cap coins. Therefore, the market capitalization of even the biggest and most popular coins is constantly changing. Since cryptocurrency is a relatively new asset compared to traditional assets such as stocks, there are currently few ways to predict how a particular coin’s value or growth trajectory is likely to change over time.

The unpredictability of cryptocurrencies is the main reason why financial experts encourage new traders to invest cautiously even in large crypto projects. It is always a good idea for novice investors to do their due diligence before committing to any investment and only put in as much money as they can afford to lose.