Key Takeaways

• Crypto market cap surged past $3.8 trillion, approaching all-time highs and rivaling the UK’s GDP.
• Technical analysis points to a potential $4.45 trillion target for crypto market cap in near future.

The cryptocurrency market capitalization reached an all-time high of $3.8 trillion on Monday, putting it nearly on par with the United Kingdom’s gross domestic product (GDP).

According to data from Cointelegraph Markets Pro and TradingView, the global crypto market cap jumped 16% over the preceding five days, breaking its previous December 2024 record of $3.76 trillion.

Rally Driven by Bitcoin Dominance

Bitcoin (BTC) was the primary driver behind the market surge, touching a new all-time high of $123,000 on Monday.

With a market cap alone exceeding $2.4 trillion, Bitcoin alone dwarfs the GDP of Canada. When combined with other cryptocurrencies, the entire crypto sector surpassed Microsoft’s market cap and is approaching Nvidia’s.

Interestingly, Bitcoin’s rally pushed its market cap above that of Amazon, Silver, and Google, establishing it as the fifth largest asset globally.

If ranked by market cap, the crypto sector would place seventh globally. The TOTAL index (comprehensive crypto market cap) currently trails the UK’s GDP by approximately $40 billion.

For context, if the crypto market were a country, it would stand behind the US, China, Germany, India, Japan, and the United Kingdom.

Bullish Technical Signals

Technical analysis reveals a bullish setup that could push crypto market cap to new heights in the coming months.

The Supertrend indicator on the TOTAL/USD weekly chart flashed a “buy” signal earlier this week, reversing from red to green and moving below the price.

This indicator, which incorporates average true range in its calculations, has historically preceded significant market rallies. Previous instances followed by the indicator corresponded with 1,000% and 300% rallies from bearish markets in 2021 and 2023-2024 respectively.

“TOTAL cap has just signalled ‘buy’ on a macro chart. This is massive.”

— Mikybull Crypto, @MikybullCrypto

Analysts note that the appearance of the green Supertrend below price typically favors bullish sentiment. The current signal suggests continued upside momentum as long as the indicator remains green and below price.

Technical patterns also suggest potential upside. Crypto bears would need to defend the $3.7 trillion support level for any nascent bullish trend to be validated. A breach above this threshold could trigger further buying interest.

Based on an inverse head-and-shoulders pattern identified on the weekly chart, market experts are looking at a $4.45 trillion upside target, representing a potential 19% increase from current levels.

Market Perspective

Earlier this week, crypto trader Daan Crypto observed that breaking above the $3.7 trillion threshold would signify “momentum and risk appetite being properly reignited” in the market.

The current market cap remains above these psychological resistance levels, potentially suggesting sustained bullish momentum into the coming weeks.